23-Jan-2023 | Facts and Factors
According to Facts and Factors, the global cross-border B2C e-commerce market size was worth around USD 785 billion in 2021 and is predicted to grow to around USD 7938.01 billion by 2030 with a compound annual growth rate (CAGR) of roughly 26.19% between 2022 and 2030.
E-commerce or electronic-commerce refers to the activity of buying or selling goods or services over the internet with the help of a digital medium. The e-commerce industry mainly functions on aspects like electronic fund transfer, mobile commerce, internet marketing, mobile commerce, electronic data interchange, automated data collection systems, supply chain management, online transaction processing, and inventory management systems. It is one of the fields that has been directly influenced by the technological growth in the semiconductor industry. There are five essential categories of e-commerce business that are business to business, consumer to business, consumer to consumer, business to government, and business to customer.
Browse the full “Cross-Border B2C E-Commerce Market Size, Share, Growth Analysis Report By Category (Personal Care & Beauty, Apparel & Accessories, Health & Nutrition, Entertainment & Education, Food & Beverages, and Others), By Offering (In-House Brands and Assorted Brands), By End-User (Teenagers, Adults, and Senior Citizens), By Mode of Payment (Digital Wallets, Internet Banking, Credit & Debit Cards, Unified Payments Interface (UPI), and Others), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2030" report at https://www.fnfresearch.com/cross-border-b2c-e-commerce-market
The last segment is also called the B2C segment. It is a retail model in which the desired services to produce directly move from the business to the consumer for personal use. There are no middlemen involved in such a process and it is a completely transparent way of transactions. Cross-border refers to the sales and purchase of goods across legislative bodies following legal norms. Some businesses may operate locally or regionally while some may wish to expand into new markets that can be achieved at minimum cost using the features of the e-commerce segment.
The global cross-border B2C e-commerce market is projected to grow owing to the rising shift of people toward online purchases instead of shopping from brick & mortar units. This is because there are various advantages associated with e-commerce shopping like high product options, price comparisons, easy return policy, excellent customer service, multiple deals and offers on products, and the best part is all of this can be achieved without physically moving from one location to another which acts as the main highlight for cross-border transactions. The global market growth may further be driven by the growing foreign investment-friendly government measures to incorporate international brands in regional economies to encourage financial growth.
Other factors like increasing the use of social media like Instagram and Facebook to sell products along with investments in ‘influencer marketing’ have managed to generate higher revenues in the global market. Growing brand visibility, increase in disposable income, and product availability at less expensive prices are other reasons that are attracting more consumers and will continue to do so in the coming years. The use of advanced technology, exceptional marketing & advertising strategies, game-changing collaborations, and joint ventures have led to a tremendous increase in the overall e-commerce segment.
The major restraining factor during the global market growth trajectory is the increasing incidences of consumer or seller fraud. In the case of buyers, the number of incidents where the buyer has received faulty or duplicate products is growing at an alarming rate. Under transactions that occur across borders, it becomes difficult to track the original sellers of the product and most such incidents do not reach a final outcome.
The changing consumer preference may provide growth opportunities while managing sales fraud could challenge the market expansion.
The global cross-border B2C e-commerce market is segmented based on category, offering, end-user, mode of payment, and region
Based on offering, the global market is segmented into in-house brands and assorted brands. The global market is led by assorted brands on the website since they are currently the largest revenue-generating segment. For instance, Alibaba Group is China’s leading e-commerce portal which sells products across categories from different brands. It currently hosts over 5900 categories of products on its portal. However, in-house brands segments also generate significant revenue especially in terms of apparel and accessories since the demand for fast fashion has grown tremendously in the last couple of years. The growing use of technology to enhance customer experience is expected to act as a growth contributing factor.
Based on end-user, the global market is divided into teenagers, adults, and senior citizens with the teenagers segment leading the segmental growth due to the high number of the younger generation shopping online from various cross-border websites. The segmental revenue is a result of the increasing use of social media and the marketing tactics adopted by brands to promote their product on such channels. In 2021, Shein spent more than USD 100 million on advertisements through print and digital media.
Asia-Pacific is expected to lead the global cross-border B2C e-commerce market mainly driven by the large-scale hold of China’s cross-border websites across the globe. The country is known for forging international brands and using strategic measures to market these products. The success of Shein and Alibaba in a short span of time is a prime example of the marketing techniques adopted by the regional players. Growth in India can be expected to be driven by the growing emphasis of the Indian government on its e-commerce sector due to high growth potential as the consumer population continues to rise. North America may register a significant CAGR due to the high preference of the local population toward e-commerce shopping.
Market Size in 2021
USD 785 Billion
Projected Market Size in 2030
USD 7938.01 Billion
CAGR Growth Rate
Key Market Players
JD.com (JingDong), Shein, Alibaba Group, Anchanto, BoxMe, DHL Group, Fruugo, Joom, Pinduoduo, PayPal., and others.
By Category, Offering, End-User, Mode of Payment, and Region
Major Regions Covered
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
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The global cross-border B2C e-commerce market is led by players like JD.com (JingDong), Shein, Alibaba Group, Anchanto, BoxMe, DHL Group, Fruugo, Joom, Pinduoduo, and PayPal.
- In December 2022, the share price of Alibaba went up by 3% as soon as China confirmed that it will lift some of the Covid-19 rules that have been in place since the start of the pandemic
- In April 2022, Shein was in talks with investors and is expecting to raise USD 1 billion of funds at a current valuation of USD 100 billion
Cross-Border B2C E-Commerce Market: Segmentation
The global cross-border B2C e-commerce market is segmented based on category, offering, end-user, mode of payment, and region.
- Personal Care & Beauty
- Apparel & Accessories
- Health & Nutrition
- Entertainment & Education
- Food & Beverages
The global market registered the highest growth in the apparel & accessories segment due to the growing demand and consumption of fast fashion, which is a term used to describe the process of rapid changes in clothing lines in a short duration. Most fast fashion clothing products are relatively less priced as compared to slow fashion, which makes them highly attractive to the younger population. Fast fashion chains have adopted exhaustive marketing strategies to reach a larger consumer database. Shein.com amassed revenue of USD 13345 million in 2021.
By Mode of Payment
- Digital Wallets
- Internet Banking
- Credit & Debit Cards
- Unified Payments Interface (UPI)
The global market growth was propelled by the credit & debit card segment in 2021 because it is the most trusted and well-accepted method of payment in terms of cross-border transactions. Credit cards are most widely used as compared to debit cards because they are highly prone to fraudulent events. Many credit card companies offer their clients protection against fraud and purchase giving them a certain degree of security. India recorded around INR 8.9 lakh crore of credit card transactions in 2021 as per the Economic Times.
- In-House Brands
- Assorted Brands
- Senior Citizens
- North America
- The UK
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
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