Cross-border e-commerce – buying internet from merchants in other countries – is becoming more popular in China. According to eMarketer, by 2020, a quarter of Chinese will shop directly on foreign websites or through third-party shopping, such as Alibaba’s Tmall International and JD.com’s JD Worldwide.
Cleveland Brown, CEO of global payment processing provider Payscout, said at a press conference on Tuesday (October 18) that this emerging trend is a huge opportunity for global entrepreneurs.
“We especially encourage small and medium-sized companies to be prepared to take advantage of China’s interest in overseas goods,” Brown said, noting that, according to eMarketer’s data, China’s cross-border digital shopping growth has exceeded 70% in 2015 alone. The company said that this is partly due to improved living standards in China and more foreign products.
In addition to cross-border commerce, Payscout said that the global enterprise-to-consumer e-commerce market ($230 billion in 2014) will surge to $1 trillion by 2020. Payscout cites research reports from global consulting firms Accenture and Alibaba Group Alibaba The research report arm, for the data. Payscout said that in the report, the projected compound annual growth rate of cross-border e-commerce will reach 27.4% in the next five years, which is twice the total amount of B2C shopping in the world.
“By 2020, more than 900 million people worldwide will become international online shoppers, accounting for nearly 30% of global B2C transactions. By then, according to the Accenture-Ali study, China will become the largest cross-border B2C. Market. It is expected that more than 200 million Chinese consumers will conduct cross-border shopping within 5 years, and the amount of imported goods purchased online will reach 245 billion US dollars,” the company said in a press release.