How big is the Cross-Border Ecommerce market?
The joint report by Paypal and Alibaba puts the total value of cross-border E-commerce in 2020 at more than US$1 TN with a CAGR of 25%. The total volume of cross-border E-commerce revenue in targeted markets in 2014 was recorded at US$330 BN and growing at a frenetic pace. The total volume of cross-border E-commerce in the western world and Eunimart’s target markets stands at US$296 BN. Projected market size in 2020 for our target markets stands at US$800 BN at an expected CAGR of 25%. Smartphone penetration in European nations averages in the low 80 percentage. In the target Western European markets the smartphone penetration is roughly 90% and higher, internet penetration is closer to 95%, more than 60% of the population shops online.
At a glance, this is a huge captive market, with per order ticket sizes averaging above 40 Euros in value. E-commerce as a percentage of GDP, stands at above 3% in France and Germany, and above 5% in the United Kingdom. As we can well see, this is definitely as a market that a fast growing manufacturing economy like India should be focused on. South America is another fast-growing market and has large similarities to the Indian subcontinent. Widespread poverty with a privileged upper class has limited E-commerce penetration for a while, until recently. In the last 3 years, E-commerce in South America has taken a huge upswing. Brazil, Argentina, Chile have grown fast and per order ticket sizes are very high, averaging at uUS$50 and above. North America, on the other hand, has USA, Canada and Mexico, 3 of the largest e-commerce markets in the world. These are highly mature markets and rank very high in all metrics. USA is the world leader in cross-border E-commerce. Canada and Mexico have some of the highest growth rates in cross-border E-commerce in the world.
These markets are lucrative and most Indian merchants have already been targeting these markets for some time. India, similar to Russia, Indonesia, Mexico as well as UAE, embodies swift growth in the global E-commerce sector though it is yet to rank in the top 10 largest markets for the same. It is convincing that India’s promptly expanding accessibility to the internet as well as growing fulfilment infrastructure makes it possible to reach out to the middle-class. Although the country lags behind in the widespread use of smartphone in comparison to the rest of the countries in the world, mobile commerce will surely generate higher revenues than its desktop counterpart. Therefore, it is quite evident why an increasingly large number of Indian online sellers are opting for global E-commerce nowadays irrespective of the various pain points that they face in doing so.
How does EuniMart come to picture here and what eUniMart aims to achieve out of it?
EuniMart facilitates brands with the following:
- Identifying the top E-commerce markets in the world and connecting brands to the regional marketplace leaders.
- Identifying the right market fit for the brand’s products. Helping brands with pricing and promotions in order to increase sales through in-built algorithm.
- One point for managing catalogue, listings, orders, inventory, logistics and payments for multiple marketplaces.
- Calculation of duties and taxes applicable for every product for every market through built-in algorithm.
- Identifying the cheapest, fastest and best logistics partner for every product for every market through built-in algorithm.
- Creation of an end-to-end payment pipeline for brands for the lowest fees and hassle free payments in INR.
- Transfer price based model allows brands to quote prices for every product to be received after all deductions have been made in INR. This allows them to comfortably project expenses and plan ahead.
The business model of Eunimart is based on four pillars, namely:
- Payments: Multiple payment alternatives for sellers at best-in-market rates.
- Logistics: Multi-channel logistics, DTP shipping and end-to-end tracking visibility at best-in-market rates.
- Marketplace: Multiple channels, single point access to inventory and order management, seller training and consulting.
- Information Technology: Smart shipping logic, guaranteed pricing logic, competitive pricing logic, seamless integration with partners and full visibility over analytics.
How is Eunimart poised to revolutionize the business of Indian online sellers?
Indian E-commerce industry is still in its infancy due to several obvious reasons like increased returns, high failure rate of payment gateways, low internet penetration, etc. Therefore, a larger pool of ambitious Indian online sellers is willing to switch to global E-commerce. However, there are many pain points encountered by them in doing so which may be listed as following:
- Competition: Deep insights into products to be made live on the international marketplaces and the number of products to be showcased in order to be a forerunner are difficult and require expert guidance.
- Logistics: Collaborating with renowned and reliable international logistics partners offering impeccable services at the most affordable rates. Getting hold of a good logistics partner for cross-border deliveries is a must.
- Seasonal Variation: Effective management of excess inventory due to seasonal variation of sales is a big challenge and can be handled with a dedicated inventory management focus.
- Payments: Payment processing and accessibility while selling global is one of the most critical challenges and can be dealt by proper management of payment cycles that ensure swift and secure payments.