DHL: Cross-border e-commerce could be huge growth opportunity

Cross-border online retail is on an upward trajectory, and a catalyst for domestic retailers to grow their businesses.



That’s according to “The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity,” a report form DHL Express. Based on responses from more than 1,800 retailers and manufacturers in six countries, the study details the markets and products that offer the highest growth potential, and motivate customers to buy internationally.



According to the study, cross-border online retail is predicted to grow at twice the rate of domestic e-commerce (a compounded annual growth rate [CAGR] of 25%) until 2020. At this rate, the market will jump from $300 billion in 2015 to $900 billion in 2020, the report said.



Online retailers are also boosting sales between 10% and 15% on average, simply by extending their offering to international customers. An additional boost comes from including a premium service offering. For example, retailers can grow 60% faster with a premium service offering. Those that incorporated a faster shipping option grew 1.6 times quicker on average than other players, data revealed.



“Shipping cross-border is much, much easier than many retailers believe, and we see every day the positive impact that selling to international markets can have on our customers’ business growth,” said Ken Allen, CEO, DHL Express. “We also see that virtually every product category has the potential to upgrade to premium, both by developing higher quality luxury editions and by offering superior levels of service quality to meet the demands of less price-sensitive customers.”



Retailers already dipping their toes in the cross-border waters are already seeing returns. For example, 20% of cross-border transactions have a $200 basket value. Brands are so encouraged by this that 71% of companies expect the share of cross-border revenue to grow in the future, data showed.