Global Cross-Border B2C E-Commerce Market 2023

Global Cross-Border B2C E-Commerce Market 2023

The cross-border E-Commerce market inclusive of the B2C E-Commerce is forecasted to witness a double-digit growth in the next four years: new yStats.com report.

Digital wallets are gaining momentum as the preferred cross-border B2C E-Commerce payment method

As the cross-border B2C E-Commerce market is gradually evolving, the transaction value of cross-border B2C payments has shown an increasing trend between 2020 and 2022. Although card-based payment methods are among the most preferred payment methods for online cross-border shopping, mobile wallets such as PayPal, AliPay among others are gaining popularity among online shoppers across regions, according to the new yStats.com report. For instance, Japan and Singapore accounted for more than half of online shoppers using credit cards to pay for their cross-border purchases as of January 2022. While digital wallets such as PayPal and Alipay were preferred among nearly half the online shoppers in Australia and China respectively, the growth of cross-border B2C E-Commerce across Asia-Pacific also led to an emergence of embedded finance options to pay for cross-border purchases. Companies such as PayPal and Currency Cloud support the embedded finance ecosystem across Asia-Pacific. Payments via mobile phones, websites, and wearable devices are becoming popular in the region due to the rise of QR codes and tokenization, as spelled out by the new yStats.com report. The popularity of digital wallets is not limited to Asia-Pacific and can even be seen across Europe. For example, PayPal, followed by credit card and direct transfer were the top 3 cross-border payment methods that online shoppers used as of April 2022. Similarly, Italy also saw more than half of online shoppers inclining towards PayPal when it came to their cross-border purchases as of January 2022.

Clothing and footwear accounted for the most bought product categories, with China being the preferred purchase destination

The growing demand for online shopping during and post pandemic also led to the gradual shift towards cross-border B2C E-Commerce. More than one-fourth online shoppers globally preferred cross-border purchases due to lower prices and better quality of products as of November 2021, with clothing, apparel and footwear being the most purchased categories among more than one-third of online shoppers. Fashion items such as clothing and footwear were also popular cross-border purchase categories among more than half of online shoppers in Germany and the Netherlands as of H1 2022, as revealed by the new yStats.com report. Furthermore, more than half of online shoppers in Luxembourg also preferred to purchase clothing, footwear, and accessories via online cross-border channels as of 2021. While in China and Australia online shoppers inclined more towards the purchase of cosmetics and games & toys respectively when it came to online shopping. China was the preferred cross-border purchase destination worldwide, with its share being the highest in Greece, Latvia, USA, and Indonesia among other nations. Despite this, the country’s share in E-Commerce market decline as of 2021 in comparison to its share in 2020. Moreover, in terms of the country of most recent cross-border purchase, China’s share in Japan, India, UK, New Zealand, as well as the U.S. saw a dip compared to its share in 2020.