According to a recent report, worldwide cross-border e-commerce is expected to reach US$424 billion by 2021, making up 15% of all online commerce activity. By 2020, Global e-commerce will grow twice the rate of domestic e-commerce.
Retailers, manufacturers and brand owners who have yet to participate, should take advantage of the growth in cross-border e-commerce, particularly in Southeast Asia.
The rise of Southeast Asia’s consumer middle class whom have become more affluent and digitally connected has led to the region being dubbed the next gold rush.
Even though the B2C e-commerce market size in Southeast Asia is small, the B2C markets in Indonesia, Malaysia, Singapore and Thailand are projected to grow from US$7 billion to US$34.5 billion in 2018.
55% of all online shopping in Malaysia and Singapore is estimated to be cross-border.
The top category for cross-border shopping is fashion,home and beauty products followed by personal electronics and computer hardware. 6 out of 10 consumers are estimated to buy books or clothes and shoes most often when they shop online.
For cross-border e-commerce to be successful, efficient fulfilment is essential. Asian retailers need to choose a third-party logistics (3PL) who can fulfil their requirements.
A capable third-party logistics must have a good warehouse management system with processes designed for the following:
- E-commerce fulfilment.
- Segmentation of orders and inventory.
- Immediate integration with marketplaces.
A proficient third-party logistics can assist retailers in overcoming confusion and uncertainty around customs duties, taxes, the hassle of finding local delivery, and reverse logistics options.
LWE (Logistics Worldwide Asia), the parent company of Etailer Gateway has made significant investments in technology to keep up with the ever-expanding cross-border e-commerce market.Not only does LWE’s network cover the geographical locations in Asia, but LWE is also able to provide precise and real-time tracking of inventories and deliveries.
Please get in touch with us below to find out how we can help you achieve a successful cross-border e-commerce growth strategy.
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