Cross Border eCommerce — Making Small Businesses into Global Traders

eCommerce is enabling consumers in ways never anticipated before. Making the world one big market

Sellers are in multiple countries and Cross Border eCommerce is going beyond consumer goods — into industrial goods, suppliers, spare parts and more

Small businesses have an opportunity to reach world markets and expand their business beyond borders

Logistics providers are changing their paradigms (and pricing). It is now possible to deliver a 100 gram parcel across the globe at prices that compete with local delivery charges

With platforms like Alibaba Global Seller Platform and Amazon Global Seller Programs, small merchants can see their products being sold on various Alibaba and Amazon platforms in multiple countries

Take the example of Lazada Singapore. Consumers can now buy tens of thousands of products directly from China sellers (Look for the TAOBAO collection) by paying a fee of Three (3) Singapore Dollars for delivery. The cost of local deliveries in Singapore even by the cheapest city courier is no less than five (5) dollars!

What will happen to brick and mortar retailers ?

If I were to start a retail shop today, I would be very cautious. Good well-run retail businesses can at best make 2–5% net profit after all expenses. Many retailers don’t count their actual salary cost to arrive at their retail store profitability. The low profit is because of the high cost of doing an inventory lead, physical space retail business.

A cross border seller keeps the inventory in limited locations and can serve the world

As a physical retail shop, I can easily find competition coming not from the same mall or same street or even the same city or same country. It can come from a small business in a small town in a distant country!

This should give any retailer the shivers!

Small businesses and retailers can take advantage of cross border eCommerce and become global sellers with global customers

To know more about how cross border eCommerce works please write to ajay@tigerpug.com

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