E-commerce continues to drive the international expansion of Spanish SMEs. According to data presented at the latest eCommerce Day Global event, in 2021, Cross-Border eCommerce represented 15% of global sales. It is estimated that between 2022 and 2030, it will grow to 27% compared to Domestic eCommerce.
E-commerce Situation in Spain
Nationally, Spanish companies consider e-commerce as the best opportunity to enter the global market. The latest data published by the CNMCData portal confirms this, showing that in the second quarter of last year, the sector exceeded 18,000 million euros in turnover for the first time in its history.
For this reason, Cross-Border eCommerce has proven to be a great opportunity to promote greater proximity to consumers, markets, and points of sale, regardless of their location.
Furthermore, with the strengthening of Cross-Border eCommerce, the aim is to generate more employment and develop new businesses.
Similarly, this type of commerce makes it easier for small and medium-sized enterprises to overcome barriers when accessing other countries without the need for physical stores.
Keys to Cross-Border eCommerce
To gain access, you need to develop a proactive strategy focused on the chosen country for selling, conduct preliminary research to understand your market, and target consumers very effectively. As in any other market, understanding the customer is essential for success.
Of course, Cross-Border eCommerce requires several requirements for SMEs:
1. Your start in digitization.
2. Review administrative procedures.
3. Tax policies.
4. Local consumption habits.
5. Different payment methods.
6. Logistics for international shipments.
Above all, customers expect the same things from Cross-Border e-commerce as they do from domestic e-commerce: speed, low shipping costs, shipment traceability, and easy returns.
However, the customer’s primary goal is to find tens of thousands of products online that satisfy their desires, make a purchase with a single click, and interact easily with the seller at no cost.
A 2019 survey by the consulting firm Accenture, “Cross-border, the disruptive border,” highlights many of the main trends in Cross-Border eCommerce:
1. This type of commerce is growing at twice the rate of domestic commerce.
2. 72% of shipped products weigh less than one kilo.
3. 70% of shipments are made by postal organizations.
4. China leads the growth.
Who Leads Cross-Border eCommerce?
So far, China is the leading country in Cross-Border eCommerce, with e-commerce giants like Alibaba, the leading platform for global wholesale trade, serving millions of buyers and suppliers worldwide.
The success of this platform lies in offering suppliers the tools they need to reach a global audience and in helping buyers from over 190 countries find over 40 different product categories quickly and efficiently.
Although the Asian country holds this leadership and is expected to continue supporting global Cross-Border growth, Latin America is also making waves in this segment.
Finally, as observed by the president of the eCommerce Institute during the eCommerce Day Global, “Cross Border, or what we will call global sales in the future, is undoubtedly the next future of global digital commerce. Many countries have already jumped on the Cross-Border bandwagon, such as Mexico, Brazil, and Chile, generating significant opportunities for the entire sector, but especially for SMEs that have proven to be a strong link in the trade chain.”
The adoption of marketplaces and eCommerce strategies increasingly facilitate connecting different countries, suppliers, and consumers through a single platform.
On the other hand, advances in digital payment methods have provided the opportunity to use different alternatives and tools in purchases and transactions.
Furthermore, Cross-Border logistic solutions have been created to support the storage and shipment of products or raw materials to other countries.
With all these advantages of Cross-Border eCommerce, Spanish SMEs are at a crucial moment for their growth and expansion.