The Globalization of E-Commerce
2017 has brought a lot of attention to the globalization of business. President Trump’s proposed tariff on international imports affects online sellers worldwide. As technology advances, the world seems to shrink. Long distances become shorter as travel improves. Staying connected is easier than ever with chat apps, social media and video calling. More than ever, businesses are able to reach a worldwide audience with the right tools and American e-commerce entrepreneurs are facing stiffer overseas competition. Does the globalization of e-commerce pose a threat to American business owners? Or offer a more global landscape in the world of online selling?
Last year, China-based Alibaba surpassed Walmart as the world’s largest retailer. The Chinese company also generates more gross merchandise volume than Amazon and eBay combined, two of the largest e-retailers in the US. As Amazon makes its way into new markets around the world, it faces Alibaba as its biggest competitor. In anticipation of Amazon’s arrival, Alibaba preemptively partnered with local services and startups to gain a stronghold in Singapore and Southeast Asia.
Small e-commerce businesses are also learning to adapt to an increasingly global audience. Some American sellers struggle to keep prices as low as their Chinese competitors. However, many are able to offer preferable shipping options and support the “shop local” mentality. US-based sellers are also taking advantage of the globalization of e-commerce by breaking into European and Asian markets. After all, last year Asia had the highest number of online purchases per person and Western Europe came in third place right after North America.
More recently, SnapDeal’s announced acquisition of FlipKart has set the stage for India’s growing e-commerce presence. Estimated to grow to a USD 33 Billion industry by the end of the year, India is one of the fastest growing e-commerce nations. Not only does the country host a growing community of sellers, but the number of online shoppers in India is estimated to reach 175 million by 2020.
By taking advantage of marketplaces like Etsy, eBay and Bonanza, online sellers are able to reach buyers across the globe. Eunimart is an Indian cross-border e-commerce enabler for Indian sellers to expand to global audiences. Eunimart sellers seeking introduction to the US market have the opportunity to do so on Bonanza. The Seattle-based e-commerce marketplace provides Eunimart sellers with advertising tools and access to millions of unique American consumers. The ability to sell unique Indian-manufactured products in new markets is an invaluable benefit that Bonanza offers to these Indian e-commerce sellers.
An increasing number of countries are emerging as e-commerce leaders. More cross-border relationships are being fostered. For some, it means stiffer competition. For others, it means dominating new markets. Sellers who use the available tools can quickly adapt to an increasingly globalized industry. The platforms adjusting to international markets are giving entrepreneurs the chance to expand their business like never before. Early adopters to these changes are beginning to see that it’s a small world, after all.