International Ecommerce: Online Commerce Goes Global

In recent years, there has been much discussion about international trade and globalization, and its impact and importance for both the domestic and global economies.

However, with global online sales estimated to exceed $2.3 trillion in 2017, any discussion about global business must take into account the vast impact of the global eCommerce market.

Despite the rise of nationalism (both at home and abroad), the internet has vastly increased the amount of commerce conducted across national borders; in addition, the evolution of new and improved technologies—including the rapidly growing smartphone market—has further spurred the growth of the global eCommerce market.

While Americans have come to accept and embrace the idea of purchasing almost everything online, they are not alone in their willingness to turn to the internet for a vast array of products and services.

Ecommerce is also rapidly growing in countries with emerging economies, including Brazil, Russia, India, and especially China. According to a global online shopping study conducted by Pitney Bowes, 66% of all consumers now shop online, and approximately 40% have made international eCommerce purchases, or purchases from another country.

The Good News: A Global Hunger for American eCommerce

The good news for American eCommerce companies is that the same study found that, for online customers who shopped across international borders, the U.S. was one of three of the most popular destinations; the other two were the UK and Germany.

Given the size of their respective economies, it’s also not surprising that the study found the biggest international eCommerce markets for U.S. products and services are Australia, the UK, and Canada. Still, the research also revealed “significant opportunity” for U.S. eCommerce companies in other nations—especially Brazil, Germany, and China.

Of course, this study was conducted prior to the recent imposition of new tariffs by the U.S. government on steel and aluminum imports, and promises of retaliatory tariffs from European Union (EU) countries, as well as Canada and Mexico. There is also speculation that additional U.S. tariffs on multiple products imported from those and other countries—including the world’s second largest economic power, China—may be forthcoming.

Yet, despite moves toward protectionist policies, there remains no doubt that the international marketplace provides significant opportunities.

The Pitney Bowes study revealed growing demand for “lower value (U.S.) goods” in the international eCommerce market; this is particularly true for Canada, given the relatively cheap shipping costs to that market compared to overseas markets.

Indeed, other surveys confirm the burgeoning nature of the global eCommerce market. According to a Forrester Research survey, cross-border B2C eCommerce is slated to more than double, reaching approximately $629 billion by 2022.

‍

The Building Blocks for Developing International eCommerce

As with any business development, expanding into the global eCommerce market requires a strategic plan. Factors to consider include:

1. Establishing Target Markets

Identify the international markets most likely to purchase your products. Explore market data and consider “launching” in countries where similar goods already sell well. For deeper insights into logistics planning, see How to Optimize Your Shipping Costs for eCommerce.

2. Payment Method

Ensure payment options are user-friendly and secure for international customers. A smooth payment experience helps meet the high expectations in the global eCommerce space.

3. Government Regulations

Understand the regulatory environment for each target market—taxes, duties, customs rules, and any applicable free-trade agreements that could simplify transactions.

4. Shipping, Transportation, and Logistics

International shipping often means longer timelines and higher costs. Implement clear delivery policies and transparent return processes. Partnering with a 3PL provider can streamline cross-border operations.

5. Communication

Adapt your messaging for local languages and cultural nuances to avoid misunderstandings and build trust.

800 Million Potential Reasons to Consider Global eCommerce

Providing an optimal client experience is essential for both domestic and international customers. While global expansion may not be a fit for every online business, it’s estimated that about two-thirds of global purchasing power is outside the U.S. market—representing just under 800 million potential international eCommerce customers.

With that reality in mind, many eCommerce businesses might want to consider that their “field of opportunity” extends far beyond America’s borders.

In recent years, there has been much discussion about international trade and globalization, and its impact and importance for both the domestic and global economies.

However, with global online sales estimated to exceed $2.3 trillion in 2017, any discussion about global business must take into account the vast impact of the global eCommerce market.

Despite the rise of nationalism (both at home and abroad), the internet has vastly increased the amount of commerce conducted across national borders; in addition, the evolution of new and improved technologies—including the rapidly growing smartphone market—has further spurred the growth of the global eCommerce market.

While Americans have come to accept and embrace the idea of purchasing almost everything online, they are not alone in their willingness to turn to the internet for a vast array of products and services.

Ecommerce is also rapidly growing in countries with emerging economies, including Brazil, Russia, India, and especially China. According to a global online shopping study conducted by Pitney Bowes, 66% of all consumers now shop online, and approximately 40% have made international eCommerce purchases, or purchases from another country.

The Good News: A Global Hunger for American eCommerce

The good news for American eCommerce companies is that the same study found that, for online customers who shopped across international borders, the U.S. was one of three of the most popular destinations; the other two were the UK and Germany.

Given the size of their respective economies, it’s also not surprising that the study found the biggest international eCommerce markets for U.S. products and services are Australia, the UK, and Canada. Still, the research also revealed “significant opportunity” for U.S. eCommerce companies in other nations—especially Brazil, Germany, and China.

Of course, this study was conducted prior to the recent imposition of new tariffs by the U.S. government on steel and aluminum imports, and promises of retaliatory tariffs from European Union (EU) countries, as well as Canada and Mexico. There is also speculation that additional U.S. tariffs on multiple products imported from those and other countries—including the world’s second largest economic power, China—may be forthcoming.

Yet, despite moves toward protectionist policies, there remains no doubt that the international marketplace provides significant opportunities.

The Pitney Bowes study revealed growing demand for “lower value (U.S.) goods” in the international eCommerce market; this is particularly true for Canada, given the relatively cheap shipping costs to that market compared to overseas markets.

Indeed, other surveys confirm the burgeoning nature of the global eCommerce market. According to a Forrester Research survey, cross-border B2C eCommerce is slated to more than double, reaching approximately $629 billion by 2022.

‍

The Building Blocks for Developing International eCommerce

As with any business development, expanding into the global eCommerce market requires a strategic plan. Factors to consider include:

1. Establishing Target Markets

Identify the international markets most likely to purchase your products. Explore market data and consider “launching” in countries where similar goods already sell well. For deeper insights into logistics planning, see How to Optimize Your Shipping Costs for eCommerce.

2. Payment Method

Ensure payment options are user-friendly and secure for international customers. A smooth payment experience helps meet the high expectations in the global eCommerce space.

3. Government Regulations

Understand the regulatory environment for each target market—taxes, duties, customs rules, and any applicable free-trade agreements that could simplify transactions.

4. Shipping, Transportation, and Logistics

International shipping often means longer timelines and higher costs. Implement clear delivery policies and transparent return processes. Partnering with a 3PL provider can streamline cross-border operations.

5. Communication

Adapt your messaging for local languages and cultural nuances to avoid misunderstandings and build trust.

800 Million Potential Reasons to Consider Global eCommerce

Providing an optimal client experience is essential for both domestic and international customers. While global expansion may not be a fit for every online business, it’s estimated that about two-thirds of global purchasing power is outside the U.S. market—representing just under 800 million potential international eCommerce customers.

With that reality in mind, many eCommerce businesses might want to consider that their “field of opportunity” extends far beyond America’s borders.

GET STARTED TODAY

Request a Quote

Your eCommerce business has big potential– we know how to fulfill it. Talk to our team today.

  • 77% of U.S. respondents stated that they would absolutely give repeat business to a retailer who resends lost or damaged items with fast shipping.

  • We guarantee to fulfill orders 100% accurately within 1 business day, every time. We always keep it flawless so your growth is endless.

OUR TRUSTED PARTNERS