Introducing 5 major cross-border EC sites! Why is Japan’s cross-border EC growing so rapidly?

Cross-border EC has grown rapidly in recent years, but why? The current situation with the spread of the new coronavirus has made it difficult to casually cross borders, and the postponement of the 2020 Tokyo Olympics and Paralympics has made it difficult to shop locally. The demand for cross-border EC may also have been influenced by changes in the historical background.

In this issue, we will introduce the reasons why cross-border e-commerce is gaining attention around the world, including Japan, and five major cross-border e-commerce sites that are frequently used.

Why is cross-border EC growing so rapidly?

Business woman working with analysis marketing document .

In recent years, cross-border e-commerce has been growing rapidly all over the world, including Japan.

We will focus on the corporate and consumer perspectives.

Corporate Perspectives

Here, we will show you the appeal of cross-border EC from a company’s point of view.

  • Can significantly expand the market
  • Lower cost than physical stores

Let us explain them one by one.

Can significantly expand the market

From the company’s point of view, opportunities exist to expand the market through the use of cross-border EC.

In a world of globalization and declining birthrates, an increasing number of companies are seeking overseas markets in anticipation of declining consumption in Japan.

In this context, cross-border e-commerce is very suitable for developing markets outside Japan in the Internet society.

Recently, digital marketing methods have been diversifying, and cross-border e-commerce is likely to develop further in the future, as everything from advertising to purchasing products can be completed over the Internet.

Lower cost than physical stores

Actually going to the site and building a physical store there requires a great deal of time and effort. Naturally, a large amount of money must also be paid for it.

If you can sell your products overseas through cross-border e-commerce, you can not only reduce costs such as tenant and labor expenses, but also reduce the risks associated with opening a physical store overseas.

Consumer Perspective

The advantages of cross-border EC from the consumer’s perspective include the following

  • You can get rarities that are not available in your own country.
  • You can shop around and avoid fakes.

Let’s take a closer look starting below.

You can get rarities that are not available in your own country.

Although globalization is progressing today, we have not yet fully reached the stage where we can easily purchase overseas products that we actually want to buy at a nearby store.

A useful tool that can be used effectively in such situations is online shopping through cross-border e-commerce and other channels.

You can shop around and avoid fakes.

Because online shopping in general allows transactions between consumers as well as companies, it can lead to a variety of problems, such as the sale of counterfeit goods or the delivery of used goods even though they appear to be brand new images.

However, with official cross-border e-commerce, sales of counterfeit goods and resale of poor quality products do not occur, and safe transactions are possible.

It is very important for consumers to be able to do business safely.

Is the impact of cross-border EC and the Corona Disaster relevant?

The new coronavirus has caused restrictions on entry from abroad, creating a situation where even foreign students and others cannot cross the border.

Against this backdrop of the times, very many companies have turned their attention to cross-border EC because of the significant decline in domestic inbound consumption.

Cross-border EC makes it possible to sell products to countries and regions where they do not have a base, and manufacturers and retailers in particular are increasingly using cross-border EC.

From 2020, in addition to the high level of sales to China, cross-border e-commerce sales to the U.S. also expanded.

Why do Chinese and Americans use cross-border EC?

Regarding China, according to the iResearch 2016 China’s Cross Border online Shoppers Report, “Because the products are authentic and the quality of the products is guaranteed” is the reason why Chinese use cross-border e-commerce, accounting for 60percent of all respondents.

The reason for the low price was cited by 58 respondents %、「国内では手に入れられないレア物が購入できるから」という理由が全体の52%, which accounted for %、「国内では手に入れられないレア物が購入できるから」という理由が全体の52%.As a country where counterfeit products are easily available, it is understandable that consumers place great importance on “product quality.

Regarding the United States, according to a 2016 UPS “Pulse of the Online Shopper: Empower Consumers Changing the Future of Retail” study, “relatively low prices According to the 2016 UPS “Pulse of the Online Shopper: Empowering Consumers Changing the Future of Retail,” approximately 50% of all Americans use cross-border ecommerce because “it ‘s relatively inexpensive.

Forty-three respondents said it was because it was their favorite brand %、「国内にはないユニークな商品を求めているから」という理由が全体の35%.

Five major cross-border e-commerce sites

Online shopping concept. shopping cart, laptop on the desk

This section focuses on the following five websites of companies that operate their own type of cross-border EC or provide cross-border EC services.

  • asos
  • ebay
  • Farfetch
  • Buyee
  • Amazon

Let us look at them one by one.

asos

asos is a leading online fashion e-commerce site originating from the United Kingdom.

It carries a variety of brands for both women and men, not only clothing but also skin care products and home-related goods.

We are also developing our own original brands.

Transactions from a wide variety of countries are possible, and difficult price descriptions, such as shipping costs, can be adjusted to suit the location of purchase.

ebay

EBAY is an online auction service that is said to be the largest in the world.

It is deployed around the world and frequently trades between different countries.

New and used items are traded, and eBay is unique in that you can sell items in a variety of fields.

Because sales are conducted in an auction format, there is a difficulty in finding the right balance between price and product needs, but there is an opportunity to develop a niche market.

Farfetch

Farfetch is an online fashion e-commerce site whose main focus is on luxury brand products.

Select stores that handle purchased products are gathered and commerce is developed.

It is possible to ship to a variety of countries, and in some cases, the specifications allow prices to be adjusted to suit local conditions.

The fact that import duty fees are included in the listed price is also attractive.

Products are sent through various select stores, but this site operates with branches in various countries.

Amazon

Amazon, a well-known e-commerce site, is basically a system of marketplaces tailored to different countries.

In addition, the “Amazon global selling” service allows you to list your products on Amazon in other countries from within your country by paying a registration fee and handling charges.

Brands of Japan’s unique culture that have a certain degree of popularity are not easily available in overseas city stores, so being able to purchase them from these cross-border e-commerce sites is a great advantage.

Buyee

Buyee is a proxy purchase and shipping service operated by tenso, Inc.

Buyee purchases and ships products sold on Yahoo! Shopping, Yahoo!

This means that we act as an intermediary between overseas customers and domestic e-commerce sites to provide support. Many e-commerce sites are currently using this service.

China’s central e-commerce site

Smiling asian girl sitting with laptop, working on computer pc

Here are the main e-commerce sites in China.

Three well-known central e-commerce sites in China are Tmall and JingDong (JD.com), as well as pinduoduo.com.

Founded in 2015, pinduoduo.com is a company that has shown exceptional growth in recent years.

These three companies account for nearly 80% of the EC market share.

Basically, Chinese people do not use search engines to find products.

Most of the time, we searched for products on the e-commerce sites of Tmall and JingDong (JD.com), which have the most users, but pinduoduo.com (拼多多) broke into the top two.

Why was Pinata successful?

The reasons for the success of pinduoduo.com’s e-commerce site include the following items

  • Targeting people with low incomes
  • Incorporating elements of social networking into EC
  • Sold goods at a discount through joint purchases.

The explosive growth of pinduoduo.com was the result of Tmall, which had been at the top of the market, offering a new shopping development aimed at a new user base that had not been targeted before.

summary

The ability to sell products on cross-border e-commerce sites, not only in one’s own country but also abroad, can be a major advancement in corporate development for a variety of business owners.

In addition, the ability to easily purchase products that are not readily available in one’s home country through cross-border e-commerce is a major advantage from the consumer’s perspective.

Using major cross-border EC sites as a reference, sort out what sales formats are important to your company and consider selling overseas through cross-border EC.

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