Are You Missing Out?
With the current worldwide value of retail trade in excess of USD 14 Trillion, it is clear to see the digital economy still has plenty of room for growth. In 2014 the total worldwide e-commerce revenue was at least USD 1.3 Trillion.
During this period, consumers using e-commerce technology purchased USD 80 billion worth of goods and services from cross-border channels. These cross-border suppliers are providing consumers with ‘products’ that are non-native to the that where the purchase is made. For example, where an e-commerce transaction is made by a consumer in the United States via your website in the UK, this is cross-border e-commerce. If this entire transaction is completed online, this will count towards the USD 80 billion.
Should payment be made offline, whether or not the buyer has found you on your website, this is probably excluded from these figures. However, this is still an important factor as the sale would probably not have occurred had your buyer not found you online.
E-commerce that occurs within countries by comparison absolutely overshadows cross-border e-commerce. For example, Chinese consumers spent over USD 300 billion in 2014 via e-commerce channels.
The following table, compiled by eMarketer highlights the strength from Asia Pacific (led by China) overtaking North America in both percentage and value growth. With this flourishing market, the young adults not only have the appetite but also the money for foreign brands and goods.
Growth and Projected Growth in E-Commerce (by Percent)
|Central & Eastern Europe||4.1||4||3.8||3.5||3.3||3.2|
|Middle East & Africa||2.2||2.3||2.3||2.4||2.4||2.5|
Value of E-Commerce by Region (USD Billions)
|Central & Eastern Europe||49.5||58||64.4||68.9||73.1|
|Middle East & Africa||48.1||57.7||64.9||70.6||74.6|
The growth of cross-border e-commerce will show substantial growth in the coming years. Early predictions according to The Boston Consulting Group anticipate these cross-border sales to mushroom to USD 350 billion by 2025. However, Payvision expects this prediction to be closer to USD 300 billion by 2018.
There have been forecasters that had expected e-commerce would be well into the trillions by now, but these predictions have been taken ‘off track’ from currency crises, the dot-com crash and not forgetting the mammoth global recession.
Needless to say, these official statistics drastically underestimate the amount of digital trade actually taking place. With the increasing use of mobile and tablets alongside digital marketplaces, it is now more important than ever to have an online presence. After all, how else will you take your share of the USD 14 Trillion worldwide retail sales?
With this continuous growth, pay-per-click (PPC) advertising is a proven method of positioning your products to potential consumers. Without boundaries and considering the options available, whether you are running Adwords campaigns, paid social, display ads, mobile or Shopping campaigns, you can get your products and services into a global marketplace.
Although there are a number of large, high-profile companies making use of cross-border e-commerce trade. Size of business is no longer a factor in being able to stay abreast of the trend lines. Never before has the opportunity been so readily available to break down barriers to the global community.
For further information on how Onefeed could assist with your Shopping campaigns, please call the sales team on 01202 497077 or email email@example.com