Cross-border B2C E-commerce Market Report by Category, Offering, Payment Method, End User, and Region 2023-2028

Abstract

The global cross-border B2C e-commerce market size reached US$ 969.0 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 3,899.80 Billion by 2028, exhibiting a growth rate (CAGR) of 26.1% during 2022-2028. The increasing collaborative partnerships between businesses and local and international entities, the rising trade shows and exhibitions, the growing understanding of cross-border shopping benefits, and the shifting consumer preferences for international products are some of the factors propelling the market.

Cross-border B2C e-commerce refers to the online buying and selling of products across international borders directly to consumers. Enabled by digital platforms and global logistics networks, this phenomenon has gained immense popularity. Consumers can now access various products from different countries, offering unique choices and often competitive prices. This trend is driven by increased internet connectivity, secure online payment systems, and simplified customs procedures. It gives consumers the convenience of shopping from the comfort of their homes while allowing businesses to tap into a global customer base. It has reshaped retail, fostering cultural exchange and boosting economic growth. It will enable smaller firms to reach a global audience while consumers enjoy a wider product selection. This trend will contribute significantly to international trade and business expansion as technology and logistics evolve.

The global market is majorly driven by increasing internet penetration and global connectivity. In line with this, the consumers benefit from a diverse range of products not limited by local availability, significantly contributing to the market. Furthermore, consumers can also compare prices across borders, finding cost-effective options. This, in turn, is positively influencing the market. Apart from this, favorable exchange rates can make international purchases more appealing, catalyzing the market. Moreover, the rising secure payment systems and the growing economies are propelling the market. Besides, rapid logistics advancements, favorable trade policies, and simplified customs procedures are stimulating the market. Additionally, the escalating awareness and demand for unique and global products is providing a boost to the market.

Cross-border B2C E-commerce Market Trends/Drivers:

Increasing trend of mobile shopping

The increasing trend of mobile shopping is bolstering the market. With the widespread adoption of smartphones and mobile devices, consumers can now browse, compare, and purchase products from anywhere, at any time. Mobile shopping apps and optimized mobile websites offer seamless user experiences, making cross-border shopping more accessible and appealing. The convenience of mobile shopping aligns well with the fast-paced lifestyles of modern consumers. They can explore international products, read reviews, and complete transactions with just a few taps. Moreover, the integration of mobile wallets and secure payment systems enhances trust in cross-border transactions. The trend influences buying behavior and shapes how businesses approach their online presence. E-commerce platforms and companies are investing in responsive design, user-friendly interfaces, and mobile payment options to cater to this growing mobile-centric market. As the mobile shopping trend continues to rise, it is poised to drive cross-border e-commerce growth further, reshaping how consumers connect with global products and brands.

The rising influence of social media platforms

The rising influence of social media platforms is fostering the market. Social media has evolved from a means of communication to a dynamic marketplace where consumers discover and engage with international products. Visual platforms like Instagram, Pinterest, and TikTok allow brands to showcase products creatively, capturing consumer attention and sparking interest in unique cross-border offerings. Influencer marketing, a pivotal social media component, is vital in promoting international products to a global audience. Influencers share their experiences with products, bridging the gap between sellers and buyers across borders. Social media's interactive nature also encourages real-time engagement, enabling consumers to seek information, reviews, and recommendations before making cross-border purchases. The seamless integration of shopping features on social platforms further streamlines the cross-border purchasing process, converting consumer interest into transactions. The rising influence of social media platforms is thus reshaping the market landscape, connecting consumers with global products and cultures in previously unimaginable ways.

Favorable trade agreements and tariff reductions

Favorable trade agreements and tariff reductions are creating a positive outlook for the market. These agreements facilitate smoother international trade by reducing or eliminating tariffs, taxes, and trade barriers between countries. These agreements create a more economically viable environment for cross-border transactions by reducing the cost of importing and exporting goods. These favorable trade conditions mean increased profitability for businesses, enabling competitive pricing and wider profit margins. Consumers also benefit by accessing a broader array of international products at more affordable prices. Moreover, tariff reductions encourage businesses to explore new markets, expanding their customer base beyond borders. As countries recognize the economic benefits of cross-border e-commerce and the potential for global trade growth, they actively negotiate and implement trade agreements that foster a conducive environment for cross-border transactions. These agreements play a pivotal role in shaping the landscape of international online commerce, driving market growth, and promoting global economic integration.

Cross-border B2C E-commerce Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the cross-border B2C E-commerce market report, along with forecasts at the regional and country levels from 2023-2028. Our report has categorized the market based on category, offering, payment method, and end user.

Breakup by Category:

Apparel and Accessories

Personal Care and Beauty

Entertainment and Education

Healthcare and Nutrition

Food and Beverage

Others

Apparel and accessories dominates the market

The report has provided a detailed breakup and analysis of the market based on the category. This includes apparel and accessories, personal care and beauty, entertainment and education, healthcare and nutrition, food and beverage, and others. According to the report, apparel and accessories represented the largest segment.

Consumers globally seek unique fashion trends and personal care products, and cross-border platforms cater to these desires by offering a wide range of options from different cultures and regions. The apparel and accessories category allows consumers to access diverse clothing styles and fashion trends worldwide, contributing to their sense of individuality and self-expression.

On the contrary, the personal care and beauty segment addresses the demand for international skincare, cosmetics, and grooming products, providing consumers with a broader selection to enhance their personal care routines. These categories leverage the ease of online shopping, enabling customers to explore, compare, and purchase products from various countries, transforming traditional shopping experiences. The Apparel and Accessories and Personal Care and Beauty segments effectively fuel the market by offering distinctive products and addressing individual preferences.

Breakup by Offering:

Assorted Brand

In-House Brands

Assorted brand dominates the market

The report has provided a detailed breakup and analysis of the market based on the offering. This includes assorted brands and in-house brands. According to the report, assorted brand represented the largest segment.

Assorted brands encompass products from a diverse range of international manufacturers and sellers. This category allows consumers to access various choices, fostering a dynamic shopping experience that caters to varied tastes and preferences.

On the other hand, the in-house brands segment includes products developed and marketed by the e-commerce platforms. This approach allows companies to establish their identity and offer exclusive, curated selections to consumers. In-house brands often focus on quality and uniqueness, drawing in consumers seeking distinct products.

By offering both assorted and in-house brands, cross-border B2C e-commerce platforms cater to a broader consumer base, ranging from those seeking globally recognized labels to those interested in exclusive and differentiated offerings. This segmentation strategy effectively drives market growth by providing options that resonate with diverse consumer preferences and shopping motivations.

Breakup by Payment Method:

Digital Wallets

Internet Banking

Credit/Debit Cards

Others

Credit/debit cards dominates the market

The report has provided a detailed breakup and analysis of the market based on the payment method. This includes digital wallets, internet banking, credit/debit cards, and others. According to the report, credit/debit cards represented the largest segment.

Credit/debit cards offer convenient and secure ways for consumers to make international transactions, eliminating the need for traditional banking methods. They allow seamless cross-border payments in various currencies, reducing complexities and enhancing the shopping experience.

Furthermore, as a payment method, internet banking facilitates direct and secure fund transfers across borders. It allows consumers to pay for purchases using their bank accounts, eliminating the need for credit cards. This method provides reassurance regarding transaction security and control over finances.

The availability of these diverse payment options expands the reach of cross-border B2C e-commerce, catering to consumers who prefer various ways of conducting transactions. This segmentation strategy drives market growth by accommodating different payment preferences, making cross-border shopping more accessible and appealing to a wider global audience.

Breakup by End User:

Adults

Teenagers/Millennial

Senior Citizens

Others

The report has provided a detailed breakup and analysis of the market based on the end user. This includes adults, teenagers/millennial, senior citizens, and others.

Adults seeking convenience, variety, and unique products are drawn to cross-border platforms for their diverse offerings and the ability to purchase international goods without geographical limitations.

Furthermore, teenagers and millennials, who are digital natives, are the driving forces behind the adoption of cross-border e-commerce. Their comfort with technology and online shopping drives them to explore global products and trends. This demographic values uniqueness and cultural diversity, making cross-border shopping a perfect fit.

Breakup by Region:

North America

United States

Canada

Europe

Germany

France

United Kingdom

Italy

Spain

Others

Asia Pacific

China

Japan

India

South Korea

Australia

Indonesia

Others

Latin America

Brazil

Mexico

Others

Middle East and Africa

Asia Pacific exhibits a clear dominance, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The robust technological infrastructure and high consumer spending power in Asia Pacific fuel the demand for international products. Cross-border platforms offer various options, allowing consumers to explore unique global offerings.

On the other hand, in Europe, where diverse cultures and preferences exist within proximity, cross-border B2C e-commerce bridges geographical boundaries. European consumers seek products beyond their local markets, enhancing their choices and experiences. The accessibility of cross-border shopping platforms contributes to the growth of e-commerce adoption across the region.

These platforms effectively target distinct consumer behaviors and preferences. This approach drives market growth by catering to the unique demands of each region, connecting consumers with global products, and shaping the evolving landscape of international online commerce.

Competitive Landscape:

Top companies are pivotal in fortifying market growth through strategic initiatives and innovations. They invest in user-friendly platforms, offering seamless shopping experiences with intuitive interfaces and secure payment gateways, boosting consumer trust in cross-border transactions. These companies also leverage advanced logistics networks, ensuring timely and reliable delivery of international products. Moreover, top players foster global partnerships, collaborating with local sellers and manufacturers to diversify product offerings and cater to specific market preferences. They harness the power of data analytics to personalize recommendations, enhancing consumer engagement and driving sales. Innovative marketing strategies amplify their reach and impact, such as influencer collaborations and targeted social media campaigns. These companies bridge cultural gaps and resonate with diverse audiences by focusing on localization, language adaptation, and regional payment methods. Their commitment to customer service, hassle-free returns, and transparent communication cultivates loyalty in a competitive landscape.

The report has provided a comprehensive analysis of the competitive landscape in the cross-border B2C E-commerce market. Detailed profiles of all major companies have also been provided.

Alibaba Group

Amazon.com Inc.

Anchanto Pte. Ltd.

BoxMe

eBay Inc.

JD.com, Inc.

Rakuten Group, Inc.

SHEIN

SIA Joom (Latvia)

Wish Inc.

Zalando SE

Key Questions Answered in This Report:

• How has the global cross-border B2C E-commerce market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global cross-border B2C E-commerce market?
• What is the impact of each driver, restraint, and opportunity on the global cross-border B2C E-commerce market?
• What are the key regional markets?
• Which countries represent the most attractive cross-border B2C E-commerce market?
• What is the breakup of the market based on the category?
• Which is the most attractive category in the global cross-border B2C E-commerce market?
• What is the breakup of the market based on the offering?
• Which is the most attractive offering in the global cross-border B2C E-commerce market?
• What is the breakup of the market based on the payment method?
• Which is the most attractive payment method in the global cross-border B2C E-commerce market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the global cross-border B2C E-commerce market?
• What is the competitive structure of the global cross-border B2C E-commerce market?
• Who are the key players/companies in the global cross-border B2C E-commerce market?