Cross Border Commerce
Continuing from the
previous blog of social ecommerce where we discussed about the influence of
social media on people's buying behavior and retail disruption, it will also
blur the lines of retail landscape for consumers to purchase products from
anywhere in the world. Internet and
social media has shrunk the world by virtually removing the geographic
boundaries, and this phenomena is now catching on in the world of retail as
well.
There are a number
of eCommerce websites that offer international shipping to different
countries. But, international shipping
offerings are used rarely as most of the sites charge significant amount for
shipping. As people move across
countries and with access to internet everywhere (almost), international/ cross
border eCommerce would grow at a significant rate. One of the challenges to
solve would be the speed and cost associated with shipping across geographic
boundaries. Perhaps, it would need some rethinking in terms of global
fulfillment solutions including expediting the customs clearance process to
satisfy the consumer expectation of "2-day shipping". Other challenges would include efficient
shipping solutions depending on the package weight/ dimensions and the value of
items in the package. Cross border
eCommerce would require new solutions for taxation, and perhaps greater
synergies between countries to boost commerce.
It would result in
global business models that not only account for currency conversion (perhaps
digital currency could bridge that gap) but also personalize the experience
across geographies. It would require advanced inventory and supply chain models
heavily dependent on regional demands and at same time make regional products
available globally at a competitive price.
It would foster new relationship between countries, and would play an
important role in establishing "One Global Market". The change is coming and nobody can stop it.
Authors: Aishwarya Garg, Kaushik Sampath
**** Disclaimer ****
This blog post reflects personal opinions of the
authors and is not sponsored by any company or organization.
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