A Detailed Look Into The Benefits of Cross-Border E-Commerce
Cross-border e-Commerce has taken the entire world by storm. Businesses can now sell their product and services to customers that are half way across the globe.
Let’s face it, we are living in the age of the internet and whoever isn’t making money from the internet is missing out. The internet has become an income source, not an expense. It is becoming incredibly easy to become a global brand through cross-border e-Commerce.
The internet has revolutionise the way we do business and the way we communicate. The world is now a global village, with some unimaginable places become easily accessible due to the internet.
Thanks to the internet, international business is now run with a matter of clicks. The internet brought about a pot of gold called e-commerce. Through e-commerce a customer can now order a commodity that is found on the other side of the world in a matter of clicks and it will arrive at their door post. The online order facility goes beyond the oceans and knows no borders.
Benefits of e-commerce
Here are some of the benefits of the e-commerce business.
Huge and diverse market base
E-commerce offers a large market market base for your products. A local Zimbabwean retailer can have the opportunity to sell products to international customers in other countries like China, USA, UK etc. Even a service-based business can now penetrate the international market by building a strong online presence. Some big companies are even finding it benefitial to outsource services from smaller businesses in third world countries, all because of the internet.
Cross-border e-commerce creates a global market base. A wider market base translates to more profits. The seller gets the chance to penetrate into the the previously sacred international market.
For example, if a seller manages to penetrate countries like China it is more benefitial since China has a large population.
Branding of products
The international exposure gained in e-commerce helps local products to become more credible international brands. The increased brand recognition increases the value of the product and create more demand. More demand means more revenue. Once the product reaches international recognition, if it is a quality product, it may then become a global brand.
That way, cross border e-commerce helps turn a domestic businessman into an internationally recognised brand name.
Extended effective business hours
Businesses that sell their products through cross-border e-commerce online have the advantage of spanning many timezones. When it is night in one country its day in other countries. This means that customers where it is day in their countries can placed an orders even though its night in your country. This increases effective business hours and the business owner will technically be earning money while they are sleeping.
If a particular product is not liked by the customer of one country there are numerous countries in the world where the customer will like that product. So e-commerce gives a benefit of royalty type much secured business income.
It is recession proof
Since all the countries can’t have a recession at the same time. This means that the effects of the recession in the business owner’s country will be negligible for an e-commerce cross-border business.
Potentially maximises sales of low demand local products
A product might not be popular on the local market but e-commerce may open high demand markets in other countries. The seller can be able to sell a product in the international market even though has low value in the domestic market.