How cross-border eCommerce is disrupting the eCommerce industry?

cross-border ecommerce

The eCommerce industry has never been the same again since the introduction of cross-border eCommerce. We all know shopping is an integral part of everyone’s life. There are millions of dollars spent each day on shopping online via eCommerce sites.

However, people aren’t shopping just within the country but are buying products from the international market. In search of expanding their customer base, many businesses are extending their reach outside their country’s border and fetching international customers.

Cross-border eCommerce isn’t a bad thing but it is affecting the domestic eCommerce business and overall has become the force disrupting the entire eCommerce industry. It brings new challenges for businesses to compete in online shopping.

What is cross-border eCommerce?

Cross-border eCommerce is the practice of selling products internationally between business and customer or business and business via online market portals like Amazon, eBay, etc. A customer purchases products from outside their country’s borders through online shopping. 

How quickly is cross-border eCommerce growing?

Cross-border e-Commerce is growing rapidly across the globe. The rate of cross-border eCommerce is increasing faster in comparison to domestic eCommerce. 

According to Statistica, it has a share of 22% in the global eCommerce industry in 2022. It is disrupting the process of the general eCommerce industry and allowing business to expand their customer base across borders.

Small and medium-sized businesses are trying to sell their products internationally but are only able to get around 5% sales, especially in India. Large eCommerce businesses have higher sales internationally. They are able to sell more products because of their infrastructures and services.

Currently, Business-to-Business (B2B) is the best form of cross-border eCommerce. One business buys products from businesses outside borders and sells them again domestically. 

However, the likes of Business-to-Customer (B2C) are getting more popular than before thanks to online marketing.

Generally, eCommerce was for selling and buying within a country but eCommerce has completely changed how eCommerce works by enabling cross-border purchases. 

The eCommerce industry has to change its working algorithm to make room for cross-border eCommerce.

The payment process is entirely updated to make transactions possible between countries. Since every country has its own set of payment methods, eCommerce has changed its system to accept international payments. Platforms like Paypal and MasterCard have made things possible to purchase products from online shopping across borders.

Customers get more options to buy their products. Instead of relying on domestic online shopping platforms, now they can buy a variety of products unavailable domestically from other countries’ eCommerce platforms. They can directly buy from the manufacturer too.

Cross-border eCommerce is earning trillions of revenue each year across of globe and the number is growing every year. Soon it will have a much easier system than the one we currently have which will increase the reach of customers and payment flow. 

Cross-border eCommerce is one of the top fintech trends of 2022 and as businesses are endorsing and adopting it, the cross-border eCommerce payment flow is increasing by 5%.

Although Cross-border eCommerce is disrupting the normal practices of the eCommerce industry, it is a blessing in disguise for every business, especially for countries that do not have sufficient supplies for some products. 

Now they can easily buy the items from other countries without waiting for someone to import and sell them.

It is creating problems for domestic eCommerce by slowing down their business but also creating opportunities for them to collaborate and work with foreign businesses to sell products. 

Also, big platforms like Amazon can help small businesses sell their product through their platform and sell them abroad.

What are the challenges of cross-border eCommerce?

Cross-border eCommerce is growing everyone around the world but it’s very challenging compared to regular eCommerce systems. 

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Even for customers, it’s challenging to purchase products from other countries. Here are some of the major challenges of cross-border eCommerce:

1. Currency

A glaring barrier for firms selling internationally is currency. Consumers find it frustrating to calculate exchange rates on their own, which consequently leads to bad experiences and lost sales.

2. Shipping

Shipping across borders can be expensive and uncertain. It might also be intricate. A brand must be aware of crucial factors to take into account while delivering overseas in addition to any consumer-focused concerns they may have.

3. Payment

Providing customers with a variety of payment choices results in an easier sales experience and more purchases overall. Brands need to be aware of the approved payment options in the countries/regions they are targeting and make sure they are able to support those options.

4. Tax

Various tax laws in foreign countries present a challenge for cross-border eCommerce. You must pay taxes to both your government and your customer’s country when selling products. Even expert business owners may struggle to understand and manage several taxes.

5. Multi-Language

Your website’s content must be accessible in the language of visitors from other countries.

What are the pros of cross-border eCommerce?

As far as challenges are concerned, they are overshadowed by the benefits of cross-border eCommerce. The more we talk about it, the more it becomes one great step toward the future of e-Commerce. Here are some of the major pros of eCommerce:

1. More reach in the market

Due to the availability of new markets, cross-border eCommerce favors both brands and merchants. Cross-border selling will boost your sales volume regardless of how strong it is currently by exposing your eCommerce store to more unexplored regions. Additionally, you get to expand into new areas by giving a large number of customers who haven’t had an opportunity to buy your items.

2. Higher sales

Most businessmen probably choose cross-border eCommerce because it gives them access to more customers and more money. By expanding your company internationally, you are putting it in a position to serve a much wider customer base. The greater the market for your items, the more people will be aware of your brand. Every nation listed could open up a new door for business expansion and income growth. 

3. 365 days demand

You can experience steady demand all year long by entering marketplaces in various countries and regions. Businesses that operate in the same nation frequently become restricted to the same season, events, climates, and other factors.

Meanwhile, when you sell to a global market, you can benefit from peak seasons. Your company makes money from busy seasons that happen throughout the year depending on the country and the climate.

4. Visibility

Brand recognition is another key benefit of international trade. International brand recognition is gained by retailers who sell to consumers abroad. Numerous products from other countries are frequently thought to be of higher quality. 

Customers who are passionate about shopping and ready to select a product may be drawn to your unique and high-quality products. You can build a more well-known and well-recognized brand by providing goods that satisfy the wants and demands of consumers outside of your own country.

5. On top of competitors

Cross-border eCommerce is a common strategy used by businesses to outperform their competitors. You’re likely aware that even if you don’t satisfy a market need, your rivals will. If there is a chance for your items to enter foreign markets and you don’t swiftly take advantage of it, others will.

Gaining the advantage through this method of selling enables you to develop strong brand recognition among target customers before your rivals do. Cross-border eCommerce gives you the opportunity to stay competitive which is essential.

Cross-border eCommerce: Things to know

Cross-border e-commerce is a force to reckon with. Businesses are adopting this concept to widen their range and their profit. But first, there are a few things you should know before diving into cross-border eCommerce.

  1. You need to know the market trend and the customer to know what customers are buying in the other countries. This way you can focus on products that people will mostly be interested to sell them.
  2. You need to understand the geography of the country where you want to sell your product. You will be able to target the cities that have a high possibility of attracting the target audience. Also, approaching such cities can get you more attention and brand recognition.
  3. Don’t forget to understand the rules and regulations of cross-border countries. Every country has different rules and regulations which means you need to follow them properly to run your business there without any issues.
  4. Every country has different e-commerce platforms. It’s quite easy to figure out their names. You need to find out their market share, product category, application pre-requisites, logistics services, etc. before approaching them to extend your business.
  5. There are different partners that you may need to run your business in foreign countries. You need to find which partners can strategically help your business to expand in their country. This will ease your workload and help you to understand their market better.


Cross-border eCommerce is a disruptive force in the eCommerce industry. Offering consumers the ability to purchase goods and services from overseas, it is cutting into the profits of traditional eCommerce businesses. 

This is likely to continue as cross-border eCommerce becomes more popular and accessible. It is also increasing the competition for the domestic eCommerce businesses which ultimately will be a good thing for consumers to get quality products.