By 2023, global cross-border e-commerce transactions will exceed US$2 trillion

It is learned that according to Juniper Networks research, global cross-border e-commerce transaction volume will exceed the US$2 trillion mark for the first time in 2023.

The research report predicts future challenges and opportunities in the e-commerce sector, showing that cross-border e-commerce transactions will grow by more than 13% this year, accounting for 38% of total global e-commerce transactions.

The report noted that diversified e-commerce models, including click and collect and buy now, pay later services, are driving the change, with 97% of transactions spent on consumer goods.

Additionally, BNP is expected to play a major role in improving the cross-border shopping experience as it eats up more digital payment market share as internet usage and mobile penetration increase due to better accessibility and frictionless customer experience.

Large e-commerce platforms such as Amazon have been the driving force behind the growth of cross-border transactions as consumers can buy from multiple third-party suppliers at competitive prices.

The third-party e-commerce platform model in the e-commerce market removes complexity, which means that cross-border sellers can provide localized services. Therefore, third-party e-commerce platforms are a great way to immediately access an existing user base, although this approach may be limited compared to the DTC model.

But sellers will also face more challenges when operating cross-border e-commerce businesses.

For example, operating an e-commerce business across multiple markets can be challenging, as each market has its own regulatory framework and barriers to entry, and taxes, tariffs, and legalities can vary from country to country. Specific challenges in payments include the handling of personal data, credit card security standards, and multi-currency pricing.

Additionally, the challenges of expanding e-commerce businesses into different markets are often related to regulatory requirements, while the digitization of commerce and payment experiences is changing consumer expectations of products and services, with consumers wanting their transaction experience to be more seamless and more integrated into the overall commerce experience.

Editor ✎ Xiao Zhu/

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