Cross-border Growth: Understand the impact of this trend

In today's post we are going to talk about a very relevant topic nowadays, which is the growth of Cross-border. Follow along!

But before we talk about the numbers and the growth of cross-border, it is first necessary to understand what this term means. Objectively speaking, when translated into Portuguese, cross-border means "beyond the border". In other words, it is when a consumer buys products in foreign sites to receive them in their homes, residences, and in their countries of origin.

It is important to point out that this trend is not a Brazilian phenomenon and has been expanding worldwide. In China, for example, it is also a success. In the Chinese cross-border sites the Chinese have the habit of buying products and brands from other countries, and with Brazilians this is no different.

What is Cross-border?

As we said at the beginning of the text Cross-border means "beyond the border". This is because the expression is used to define commercial procedures that go beyond the borders. In other words, it is an export operation where companies start offering their products in other countries.

And, although this task may seem simple, it requires strategy, planning, and some analysis, such as the degree of acceptance of the products, the standardization of processes, the operational costs, the requirements and standards of the destination country, among others.

Today several products are usually sold through this system, however, jewelry, hardware-related items, health care items, clothing, shoes, handbags and accessories, as well as beauty items are responsible for the highest turnover.

Cross-border in Brazil in 2021 

Due to the pandemic caused by Covid-19, most people were prevented from traveling to other countries. Thus, with the closing of the borders there was a real cross-border boom. 

In the year 2020, these operations moved approximately 23 billion reais. Stores such as AliExpress, Shopee, and Amazon practice this sales method in which the consumer buys the products directly from the country of origin. Thus, one can see that the segment is growing day by day.

And to explain the growth of cross-border in Brazil see what the Nielsen/Ebit study, released in January of this year pointed out:

• By 2020 the cross-border increased by 76%;
• The cross-border business already generates more than 22.7 billion reais, which represents about 21% of the Brazilian e-commerce;

As the country continues to keep its borders closed, the growth of cross-border traffic this year, if compared to last year, is estimated to be even more significant.

It is worth noting that cross-border is relevant and at the same time controversial, when comparing the competitiveness of the competition between the supply of cross-border products and the supply of products sold in Brazilian stores. This happens because the tax exemption of cross-border products makes the competition for consumers unequal.

Survey about shopping on foreign websites in 2020

A recent study developed by the Brazilian Society of Retailing and Consumption (SBVC) and released in May 2021, done with almost 500 consumers in various parts of the country, tried to understand the consumption habits of Brazilians who shop cross-border. Check it out:

• The average ticket of a cross-border purchase is R$ 482,00 (7% above the average ticket of the Brazilian e-commerce);
• 65% of the respondents stated that they are consuming more on sites in other countries.

A relevant point of the survey that drew attention was the reduction of delivery times offered in this system. With several logistics solutions that these stores have offered, deliveries that used to take between 30 and 40 days are now being made in weeks. Another aspect that should also be taken into consideration when talking about increasing cross-border was the fact that 87% of the interviewees stated that they received their purchases within the allowed delivery time, which exposes a high level of satisfaction.

Is it clear to you how robust and growing cross-border has proven to be, as well as its importance within e-commerce? Contact us by clicking here and conquer the world by selling your products without barriers and headaches!