Cross Border eCommerce is the Future of eCommerce

Cross border eCommerce worldwide is exploding as more and more people and businesses around the world are choosing to shop online. According to Statista’s predictions from 2019, cross border eCommerce is expected to rise to 22% of the total eCommerce worldwide by 2022. This is up from 15% in 2016. Cross border eCommerce in China is a huge force behind this increase with a reported 21% increase (to $88.6 billion) in 2019.

Business is booming

As online shopping becomes more habitual for many consumers, cross border eCommerce in China continues to grow. Customers enjoy the wide variety of products available at extremely competitive prices. Advances in global shipping have made getting those products into consumer’s hands much easier and more affordable.

With the COVID-19 global pandemic, many consumers who rarely shopped online previously started to exclusively order from websites. Cross border eCommerce in China rose 31% to $261.5 billion in 2020. The market in China is exploding, and it looks as though this trend will continue.

Established Platforms

Cross border eCommerce in China is facilitated greatly by well-established eCommerce platforms. Setting up shops though Tmall Global, Kaola, JD Worldwide, and WeChat means that foreign companies have access to millions of Chinese consumers. As these platforms grow and become easier to use, more and more Chinese consumers are able to easily purchase goods from around the world.

Competition between the big-name eCommerce platforms that support cross border eCommerce in China means good things for the businesses who use them. In order to gain high consumer engagement, companies like Alibaba and JD.com participate in huge shopping festivals (Singles’ Day), implement easy digital payment methods, and encourage social media integration.  

Changes in Chinese Regulations

In January of 2019, the Chinese government changed some rules regarding cross border eCommerce in China. The maximum value of single transactions was increased as well as the yearly maximum for each resident. When a Chinese consumer stays within these limits, import tariffs are waived and consumer taxes are lower. The Chinese government also expanded the approved list of categories that are permitted for cross border eCommerce. Many eCommerce companies see these changes positively, especially as they affect the luxury market.

As cross border eCommerce in China continues to grow, we can expect the Chinese government to continue tweaking their regulations.

Companies making it easier than ever

Companies like Westwin make entering into the lucrative market of cross border eCommerce in China a much simpler endeavor. They are experienced in helping eCommerce companies set up profitable shops that cater to the incredibly huge Chinese market. Westwin does everything from helping their customers with their overall eCommerce strategy all the way to navigating cross border taxation policies.

Westwin specializes in Tmall stores and WeChat eCommerce. They understand the nuanced ins and outs of commerce in China that someone who is unfamiliar with Chinese consumers may miss. They are able to help their clients promote their eCommerce stores using SEO, SEM, and social media marketing. They excel at creative promotion, store design, and development. Increase your cross border eCommerce in China profits by working with Westwin.