INSIGHT: Parcel Monitor analyzes crossborder markets around the world

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Crossborder is a phenomenon that has grown in popularity in recent years. It can be between a retailer and a consumer (B2C), two businesses (B2B), or two private individuals (C2C). Shopping across national borders provides consumers with a broader range of products while also allowing businesses to expand their reach and customer base on an international scale.

Some notable insights of crossborder e-commerce in 2021 include:

#1 The USA contributed the most cross-border revenue in North America
Typically, North American customers are thought to buy internationally on a regular basis. However, this is not the case. The cross-border percentage of their total online purchases is a mere 14%, which is significantly lower than their counterparts in other regions. Besides, North America’s cross-border segment is also significantly smaller than its domestic one, representing roughly about 13.2% of the total market last year. Such low rates can be attributed to the goods abundance, plus the maturity and competitiveness of the region’s domestic e-commerce markets. Among the countries, no country can surpass the USA in terms of revenue contribution as it accounted for a whopping 78% of the total segment value last year.

#2 Germany accounted for 28.5% of Europe’s cross-border market share
In 2021, the value of Europe’s cross-border e-commerce market was around €12.7bn (US$13.4bn). Within the region, Germany contributed a sizeable portion of the total market share, representing approximately 28.5%. According to a recent Eurostat survey, the percentage of online shoppers in Germany who made purchases beyond national borders was 32% last year, with the 16-24 age group ranking first. This group purchased goods not only from e-commerce stores outside the EU but from other EU countries as well, with 26% and 35% respectively.

#3 Most US imports originate from China, Canada, and Mexico
Indeed, cross-border e-commerce has opened up customers worldwide to a whole new world of online shopping. As a result of selling products to other nations, retailers can increase their revenue and customer base, which has proven more effective than focusing solely on their domestic market. According to the leading research firm Valuates Reports, the global cross-border e-commerce market is expected to reach US$1.5tn by 2027. The report also claimed that the majority of international parcels arriving in the USA come from China, Mexico, and Europe (more specifically Poland, Russia and the UK). Meanwhile, Canada, Australia, and the UK are the main destinations for the US exports.

To read the full article by Parcel Monitor, click here.

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Yamin Myint Soe is a content writer at Parcel Monitor where she is passionate about digital storytelling and all things content.

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