- 2 February 2017
- Transport / Logistics Services
DHL Express have published a new report that identifies cross-border e-commerce as “one of the fastest growth opportunities in retail”.
The report is called The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity. It looks in detail at the markets and products that offer the highest growth potential as well as the motivations and preferences of customers who make international online purchases. Finally it looks at the success factors for online retailers who wish to expand overseas.
The report found that there is a particular opportunity for premium products and service offerings. The DHL report found that “higher basket values account for a significantly higher proportion of orders in cross-border transactions”.
According to the research, it predicts that cross border retail volumes are set to increase at an annual average rate of 25% between 2015-20 from US$300bn to US$900bn. This is twice the pace of domestic e-commerce growth. Online retailers are boosting sales by 10—15% on average simply by offering their products to international customers. In addition a boost comes from including a premium service offering. Retailers and manufacturers who incorporated a faster shipping option into their online stores have grown 1.6 times more quickly than their rivals who did not.
“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. The opportunity to ‘go global’ and ‘go premium’ is there for many retailers in all markets.”
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