COVID-19: The Impact on Cross Border Ecommerce

If there is one thing that has benefitted from the Covid 19 pandemic, it’s e-commerce. Cross-border shopping was pretty common before the pandemic too as buying from different countries was sometimes cheap while offering great services. You could even have different varieties of products at ranging prices.

According to the survey among China cross border eCommerce users, in the first quarter of 2020, around 65.3 percent of respondents said that they used cross-border e-commerce platforms more frequently. Meanwhile, about 21.7 percent of respondents reduced their usage of online overseas shopping platforms.

According to, “ it is predicted that there will be 145.7 million more online shoppers in 2020 than the previous year, totaling an estimated 2.26 billion digital buyers – an increase of 6.9% from 2019. At the start of the pandemic, a Worldpay from FIS survey of 33,000 people across 12 countries found that 38% of people were shopping more online. Accordingly, the global e-commerce market is forecast to surpass $6 trillion USD by 2024.”

It also went on to say that, “E-commerce has gained traction across virtually every product category as consumers continue to avoid physical stores even after lockdowns lift, diverting budgets from leisure activities and travel. Merchants can no longer ignore the need for a comprehensive global e-commerce strategy. Global-e’s figures based on the analysis of more than 350 brands and retailers selling internationally show a 21% year-over-year (YoY) increase in global cross-border discretionary sales during the COVID-19 pandemic in the period from January to June 2020, with Q2 sales alone soaring by over 53% YoY. The global e-commerce market is booming.”

While another website, thepaypers, recorded that: “in a context defined by lockdowns, social distancing, mobility limitations, or contactless shopping, e-commerce thrived and continued to grow, reaching USD 2.4 trillion globally. With major parts of our existence – work, school, communication, entertainment, etc. – switched to online, a growing number of the 4.2 billion internet users (54% of the world’s population) sustained the growth of online sales.”

On the topic of China cross-border e-commerce, thepaypers suggested that: “With cross-border sales of more than USD 100 billion in 2020, China takes a comfortable first place globally. This is not surprising, considering that China also represents the biggest market for e-commerce, as well as posting one of the strongest penetrations of online sales in total retailing. Cross-border e-commerce happens almost entirely through popular online marketplaces, such as Tmall Global, where many international brands are selling their products. Rising incomes in the country led to a growing demand for imported products.”

Observing these facts, opinions, and research, you might comfortably agree with the fact that cross-border e-commerce is the new trend/need. China cross-border e-commerce is booming and marketing industries are gaining a lot from that region.

Some benefits of cross-border e-commerce are:

1)  Expansion: You can expand your business in many countries, and deduce their way of marketing. For eg: digital marketing in China is very different from other countries as China has different search engines and social media.

2)  Brand Awareness: You get to make your brand more popular among foreigners.

3)  Increased revenue: If you’re offering good products at a lesser price, you are sure to gain a solid increment in your monthly/yearly revenue.

4)  Low demand product: Selling low demand products is very difficult. Most of the time buying a low-demand product in the hope of developing a domestic market for it leads to a waste of money. With cross-border e-commerce you can find niches for a product outside of your place when your domestic market fails to create a demand for it.

5)  Sustainability: With the expansion of your business outside the domestic market, you don’t have to depend on domestic demands. With international sales, you can find demands for a product from all over the world. In a way, it makes your business more sustainable and stable.

To conclude, there are many things to consider before starting cross-border sales. Digital marketing is one of them. Having a good marketing strategy is always necessary for any business. Try and develop your strategy before throwing yourself into international commerce.

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