The top cross border eCommerce markets businesses should expand into in 2022 and beyond

Tilly Michell
3 minutes
E-commerce
The top cross border eCommerce markets businesses should expand into in 2022 and beyond

China and the US present the greatest opportunity for cross border eCommerce expansion in 2022 and beyond, according to a joint report from Airwallex and PPRO. 

China has the largest cross border eCommerce market with a total value in 2021 of USD 301.5 billion. The US has the second largest market with a value of USD 103.9 billion, and the UK has the third largest market with a value of USD 30.5 billion. 

Despite this, the percentage of online shoppers in China and the US who have bought items from international retailers remains relatively small.

In China, just 39% of online shoppers have shopped cross border, whilst in the US just 33% of online shoppers have done so. 

By contrast, 84% of online shoppers in Israel, 83% in Austria, and 78% in Singapore have bought from international eCommerce sites in the past. 

Arguably, this gives the China and US markets room for significant expansion over the coming years as cross border shopping grows in popularity. 

Tristan Chiappini, Vice President, Partnerships, and head of APAC at PPRO, says: “What we’re seeing is a big increase in cross border eCommerce shopping. The size of the eCommerce pie is not dictated any more by the size and growth of your domestic market. Now the world is your oyster, you’re able to tap into that growth in multiple geographies.”

The research shows that the top-performing eCommerce segment in China in 2021 was toys, hobbies and DIY, with 26% of the market share. Fashion was the second highest performing category with 25% of the market share, and food and personal care came in third with 21% of the market share.  

In the US, the top performing eCommerce segment was fashion with 31% of the market share. Electronics and media was the second best performing segment with 21%, and toys, hobbies and DIY was third with 20%.

eCommerce businesses looking to expand into new markets in 2022 and beyond should consider optimising their online checkout by offering local payment methods that their customers know and trust. According to research from PPRO, 20% of cart abandonments are due to a lack of local payment methods on merchant checkouts. 

Popular payment methods in China include Alipay, UnionPay and WeChat Pay. Whilst in the US, the preferred payment methods include Afterpay, Klarna, Splitit and Venmo. 

Airwallex enables eCommerce businesses to increase their international conversion rates by offering customers 60+ local payment methods at checkout. Merchants can simply plug Airwallex into their online store and instantly give their customers the freedom to pay the way they want, wherever they are. 

Merchants can also settle in multiple currencies and collect funds directly into their Airwallex Global Account without being forced to convert funds to their home currency, helping them avoid needless FX fees and improve their profit margins.

Pranav Sood, GM, Airwallex, EMEA says: “Today’s market presents a tremendous opportunity for eCommerce businesses to grow beyond borders. Airwallex is facilitating that expansion by providing businesses with the financial infrastructure they need to accept multi-currency payments without high fees, and offer the local payment methods their customers trust. With our technology in place, eCommerce businesses can increase international conversion rates, improve their profit margins and achieve exponential growth.”  

Avoid sneaky fees and increase your margins with Airwallex

Research conducted by Edgur Dunn & Company, data taken from global eCommerce sales in 2021.

Back to blog

Share

Tilly Michell
Content Marketing Manager

Tilly manages the content strategy for Airwallex. She specialises in content that supports businesses in their growth trajectory.

Subscribe for our latest updates straight to your inbox
Loading...

Related Posts

Profit margins: 5 things every startup founder needs to know
Start-upsBusiness tipsFinance

Profit margins: 5 things every startup founder needs to know

4 min

How to sell online internationally with Shopify

8 min

September release notes: Faster payment acceptance, smoother reconciliation, and 2FA
Tilly Michell

3 minutes

Business Account
Global Accounts
Expenses  New

© Airwallex 2022. All rights reserved. Sitemap

In Australia, our products and services are provided by Airwallex Pty Ltd ABN 37 609 653 312 who holds AFSL 487221. Any information provided on this website is for general information purposes only and does not take into account your objectives, financial situation or needs. You should consider the appropriateness of the information in light of your own objectives, financial situation or needs. Please read and consider the Product Disclosure Statement.

Cookies on the Airwallex website

We use cookies to give you a better experience on our website. If you continue without changing your settings, we’ll assume that you are happy to receive cookies. However, if you would like to, you can change your cookie settings at any time here

Find out more