In today’s world, taking your business worldwide isn't a choice – it’s a necessity! eCommerce, technology, and logistics are advanced enough; once you find the right target markets, it's very possible to reach your business goals and be successful in eCommerce.
In fact, shoppers spend 36% of their budget online on average. Your online business could be getting a piece of that pie!
That being said, we thought we'd share the top 10 eCommerce markets that we believe are vibrant and worth targeting. Not only do the numbers show they are receptive to cross-border eCommerce, but they are not too complicated to ship to, making it easier for new sellers to get their feet wet in international shipping and to start scaling their business.
It's worth noting that large countries like China, India, Brazil, and Russia show amazing potential for eCommerce. However, the reason we don't include these countries in the list is because fulfillment can be very challenging.
For example, Chinese customs is very strict with imports and shipments are prone to delays. A huge challenge in shipping to Brazil, India, and Russia is the need for the recipient to have proper identification to accept overseas packages. We hope you understand why we omitted these otherwise lucrative markets!
Here are the top eCommerce countries you should consider selling to:
The US is the largest market for eCommerce business in the world, so investing and expanding your business there could be a wise move. The tax threshold for imports is pretty generous at US$800 which makes it less likely that customers would have to pay additional tax or duty for overseas shipments. In 2017, North America saw 12.3% sales growth in retail eCommerce, equaling US$432 billion.
Japan is one of the fastest growing eCommerce markets in the world. They rank 4th in having the most eCommerce sales worldwide, spending a total of US$111 billion in 2017. Apparel totaled 11% of all eCommerce sales in 2016and the online apparel industry continues to see steady growth. There is also an increasing demand in handmade marketplaces such as Etsy.
The UK is one the biggest eCommerce markets with a promising growth rate of 17% every year. Many UK consumers prefer products from the US and other European countries. Popular eCommerce categories include fashion, sporting goods, travel, and household items.
Germany is the top eCommerce market in Europe. Analysts estimate 12% growth through 2017, faster than any other Western European country. Popular eCommerce product categories include fashion, consumer media, and electronics. In terms of payment options, invoicing, credit cards, and online payment methods such as PayPal are preferred.
France saw almost US$50 billion in retail eCommerce sales in 2017. French millenials are very tech savvy, and on average they made at least one online purchase every month. Popular eCommerce categories include fashion, cultural products, and health & beauty products.
Italy saw US$16 billion in retail eCommerce sales in 2017, andthis sales growth is expected to increase 7.4% in 2018. Though internet penetration is only at 60%, it's eCommerce market is still considered to be growing quickly. Popular eCommerce categories include clothing, consumer electronics, and media.
Canada is another emerging and fast-growing eCommerce market with the B2C market getting more popular. PerStatista, eCommerce retail is predicted to reach CAD$29 billion by 2021. Canadians are the most diversified cross-border eCommerce purchasers; however, it's worth noting that a low tax threshold (CAD$15) will mean that your customer will most likely have to pay additional tax & duty to receive your shipments.
Though Mexicans are just starting to adopt eCommerce, the numbers show that the eCommerce scene is really starting to take off. An estimated 42 million online shoppers spent over US$9 billion in retail eCommerce in 2017. Personal electronics is the most popular category, followed by fashion, and there is a high demand for foreign goods.
South Korea has a stable economy, with eCommerce adding value to GDP and economic growth. In 2017, they saw US$46.5 billion in retail eCommerce sales and is expected to see 8.5% growth in 2018. By 2021, Koreans are predicted to spend US$1023 online. Fashion, toys, and hobby/DIY categories remain popular.
Spain is another strong contender in the eCommerce, seeingUS$20 billion in retail eCommerce sales in 2017. The average Spanish consumer spends US$724 online, and this is expected to steadily increase in the next few years. Fashion remains the top eCommerce category, with toys, hobby, and DIY following after.
We hope these insights have inspired you to take your eCommerce business globally! Before you open your store to the world, be sure to check out our guide to international shipping to ensure you have minimal logistics issues while shipping to these markets.
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