Until now, although data on the size of the EC market by country existed, it was difficult to collect and quantify data on cross-border EC by country. However, the expansion of the new coronavirus has boosted the cross-border EC community, and information on cross-border EC by country is now being written out.

Therefore, in this issue, we will organize the above data for the fiscal year 2021 edition and further introduce statistical data on the cross-border EC market with a focus on China and the United States.

Data on cross-border EC purchasers

Here we refer to the data from DATAREPORTAL’s ” DIGITAL 2021 OCTOBER GLOBAL STATSHOT” and introduce the following two points.

• Percentage of people who have used cross-border EC and actually made a purchase
• Percentage of purchases made through cross-border EC, using overall EC transaction value as the main source.

Let’s take a closer look at the above.

Percentage of people who have used cross-border EC and actually made a purchase

This section describes the percentage of respondents who have used cross-border EC to purchase products from abroad in the past. No time period is mentioned with respect to the data.

In Asia, Hong Kong %、シンガポールが73% Malaysia ranked high, hitting 75% %、シンガポールが73% 52%, respectively.

In first place is Estonia with 86%.

In China, where cross-border EC is showing rapid growth, the percentage was unexpectedly low at 47%, and data for Japan was not shown because it was not ranked.

Before the spread of the new coronavirus, it was recognized that products were more likely to be purchased through cross-border EC in countries with relatively small land areas or where the domestic market was not that large.

This trend has not changed, and even after the spread of the new coronavirus, the use of cross-border EC is still higher in countries with smaller areas.

Estonia, Singapore, and Hong Kong are good examples.

Percentage of purchases made through cross-border EC, using overall EC transaction value as the main source.

This section is based on the overall EC transaction value and presents the percentage of that value purchased through cross-border EC as a breakdown of that value. Although there is no mention of a time frame, we will take into account all EC transactions to date, and then describe the percentage of the value of purchases made through cross-border EC.

The amount of purchases made through cross-border e-commerce is very high, as one out of every two Malaysians purchased through cross-border e-commerce.

In Singapore, the experience of purchasing through cross-border e-commerce is high, as well as the amount of money spent on such purchases.

Regarding Japan, most of the reasons for using cross-border EC are also “because the products are inevitably sold only overseas…”.

The percentage of cross-border EC purchases as a breakdown of Japan’s total EC transaction value is only 13%, indicating that cross-border EC has not penetrated the market as much as in the rest of the world.

The size of the global cross-border EC market

In this section, we will use specific figures to explain the size of the global cross-border EC market.

The following is the order in which they are described.

• Why is the market size of cross-border EC expanding?
• Value of purchases of goods from China and the U.S. by Japanese using cross-border EC
• Amount of goods purchased by Americans using cross-border EC
• Amount of goods purchased by Chinese using cross-border EC

Statistics on the size of the global cross-border EC market as a whole are estimated to be US$987.7 billion in 2021, rising to around US$2,918.57 billion by around 2030, with a compound annual growth rate of 21.4% from 2022 to 2030.

As developing countries continue to improve their Internet infrastructure, we can expect further development of the cross-border EC market.

In addition, the FY2020 ” E-Commerce Survey” published by the Ministry of Economy puts the size of the global cross-border EC market at US$780 billion in 2019, which is estimated to grow to around US$4.82 trillion by around 2026.

Why is the market size of cross-border EC expanding?

Possible reasons for the expansion of the market size include the increasing number of people who wish to purchase products that do not exist in their home countries and the fact that products can be purchased more cheaply overseas than in their home countries.

Furthermore, the fact that more and more people are showing interest in ethnic costumes from other countries and in the country’s unique culture, such as anime and other forms of Japanese culture, can also be considered as a background for the expansion of the cross-border EC market size.

One possible factor is the increase in the number of businesses starting cross-border EC with the aim of acquiring overseas customers as the demand for cross-border EC use rises.

Value of purchases of goods from China and the U.S. by Japanese using cross-border EC

According to a study from the Ministry of Economy, Trade and Industry, the size of Japan’s cross-border BtoC-EC market in 2020 is 341.6 billion yen in terms of Japanese value.

The same study conducted in 2018 showed that the market size was 276.5 billion yen, indicating that the market is growing every year.

The amount of goods purchased by Japanese from China through cross-border EC was 1,949.9 billion yen.

On the other hand, the amount of goods purchased by Japanese from the U.S. through cross-border EC was 972.7 billion yen.

In sum, the total value of Japanese purchases of goods from China and the U.S. through cross-border EC is 2,922.6 billion yen per year.

Amount of goods purchased by Americans using cross-border EC

The market size of cross-border BtoC-EC in the U.S. is expanding every year.

According to a research report by the Ministry of Economy, Trade and Industry, the amount of goods purchased by Americans from Japan and China through cross-border EC in 2020 is 1,710.8 billion yen.

The size of the cross-border EC market in 2019 was 1,557 billion yen, indicating a growth rate of 9.9% per year from 2019 to 2020.

Furthermore, the size of the U.S. cross-border EC market in 2021 is expected to rise to around 2.76 trillion yen.

Based on the above figures, the U.S. cross-border e-commerce market should continue to experience further growth.

Amount of goods purchased by Chinese using cross-border EC

The market size of cross-border BtoC-EC in China also tends to rise every year.

According to a research report by the Ministry of Economy, Trade and Industry, the value of purchases of goods in Japan and the U.S. by Chinese in 2020 was 4,261.7 billion yen.

The size of the cross-border EC market in 2019 was 3,665.2 billion yen, which means a growth rate of 16.3% per year from 2019 to 2020.

Furthermore, it is said that the market size of Chinese cross-border EC usage in 2021 will rise to around 4,935.9 billion yen.

Possibilities of Cross-border EC

Cross-border EC has become a service that is used by many and should be further enhanced in the future.

The following points will be focused on and explained.

• Relationship between EC and Inbound
• Prospects for Web Inbound

Relationship between EC and Inbound

This section describes the relationship between cross-border EC and inbound.

In recent years, the spread of the new coronavirus has led to restrictions on international travel.

Japan had planned to communicate the appeal of Japanese products to foreign visitors in anticipation of the 2020 Tokyo Olympics, and to prepare a cross-border e-commerce site as a purchase route when they returned to their home countries. However, the number of foreign tourists visiting Japan declined due to the new coronavirus, and inbound consumption in Japan also declined sharply.

As infectious diseases settle down and travel restrictions are eased, the number of foreign tourists visiting Japan is expected to increase, and inbound consumption will increase in proportion.

According to a survey by the Japan External Trade Organization (JETRO) targeting Chinese tourists who actually visited Japan, about 40% of all respondents answered that the reason they purchased Japanese goods through cross-border EC was because they found a product they liked during their trip to Japan.

As described above, inbound and cross-border EC have a deep relationship and influence each other.

It will be necessary to start now to further strengthen cross-border EC in the hope that the infection will end.

Prospects for Web Inbound

Now that inbound commerce has declined and travel restrictions have been placed, it is necessary to develop a web inbound outlook.

The following three items play a major role in this web inbound

• Language
• settlement
• logistics

Let us look at them one by one.

Language

The address must be compatible with the foreign format when entering the address.

Since this is a cross-border project, it is not uncommon for us to have to respond in a foreign language when there is a problem.

Specifically, we need to prepare input forms in various languages and a support system that can respond in foreign languages.

settlement

Must be compatible with international credit cards, etc.

The risk of settlement due to unauthorized transactions must be considered and addressed.

A variety of payment methods and a system to prevent unauthorized transactions must be established.

logistics

When using cross-border EC, you must naturally prepare for international shipping.

In addition to the need to be creative with packaging, you will also need to know the details of customs duties and prohibited items.

Considering trade transactions, it is necessary to prepare some documents.

One option is to let a specialized company issue shipping documents and inspect the items.

With the development of cross-border EC, it can be expected that support systems for businesses starting cross-border EC will also be put in place.

summary

In this issue, we have shown the percentage of people who have used cross-border EC and actually made purchases, and introduced the scale of the cross-border EC market in the U.S. and China, which have close ties with Japan.

As you can see from the figures presented here, the size of the cross-border EC market is expanding every year today.

If Internet shopping continues to develop, our lives will become more convenient.