Want To Be The Next Amazon?

Want To Be The Next Amazon? Go Cross-Border From Day One

How to join the network The business of e-commerce is still mostly a national affair. U.S. consumers order from U.S. retailers like Amazon, Gap and Walmart; Chinese consumers buy from Chinese sites such as TMall, Taobao and JD.com; and Indian consumers flock to Flipkart and SnapDeal. E-commerce companies, if they do expand internationally, usually open local subsidiaries, such as how Amazon and eBay run separate sites in France, the U.K., Japan, Brazil and other markets. But, tomorrow is here: The moment for a cross-border e-commerce giant to emerge has finally arrived. And it will likely happen first via mobile. So, why is right now the magic moment for a cross-border e-commerce giant to emerge? Advances in logistics, shipping and global smartphone penetration have created a perfect storm where e-commerce companies can thrive internationally. In fact, any e-commerce startup today with multi-billion-dollar ambitions must be cross-border from day one, because local markets are already locked up by entrenched homegrown giants. Three Reasons Cross-Border E-Commerce Is Here First, consumer demand for cross-border commerce has arrived. Consumers in the U.S. are discovering they can buy goods directly from China at a steep discount. eBay and Amazon are conduits for Chinese products, with American resellers purchasing apparel, beauty products, accessories, consumer electronics and gadgets in bulk from China and reselling them to U.S. buyers. China’s largest e-commerce company, Alibaba, launched its first AliExpress website in overseas markets in 2010, allowing American and other international consumers to buy products directly from China. Second, the logistics infrastructure to support cross-border e-commerce is in place. FedEx, UPS and post offices have vastly improved international shipping services. Chinese manufacturers are also becoming savvy about using low-cost shipping methods; many now send products in bulk to the U.S., storing them in warehouses until final delivery to U.S. buyers. […]