eCommerce entrepreneurs want to know the best way to sell products online and receive the most revenue.
But tapping into a niche market can be difficult. Entrepreneurs usually look into the markets that have the best sellers.
As of lately, the B2B marketplace has been flourishing. And since the online shopping world is increasing worldwide, exports have been receiving a boost in eCommerce activity.
This is where the cross-border B2B market comes in: purchasing and shipping exports digitally. And it makes sense — if exports will inevitably be successful and increase sales, why not extend the export markets to the digital world?
If you’re thinking about extending your eCommerce site to the B2B export marketplace, find out why this industry is booming.
International Merchandise Purchased
Before understanding the benefits of purchasing international goods for the B2B marketplace, it’s best to understand what exactly online shoppers are buying.
In an eCommerce environment, here is what the highest-selling goods are:
- Apparel and footwear
- Media such as books and music
- Health and beauty products
- Sports and leisure products
- Jewelry and watches
- Home garden products
- Baby and young child supplies
- Cars, bicycles, motorcycles, and other vehicles
Exports Generate High Sales
Exporting goods is a very powerful business for the B2B marketplace, so it’s obvious why countries and smaller businesses are taking the convenience of the global digital marketplace.
For example, countries such as Rwanda increased their export sales by 31.1% when they switched to an online platform. Because of this, other countries are hopping on the digital export bandwagon.
Other B2B factors are contributing to the trade market such as trade events, and are incorporating more ways for other countries to engage in trade.
Digital Exports are Increasing in Volume
Since they generate more sales, the trade market is incorporating its business online. China started their global eCommerce trade business in 2011, and their involvement with eCommerce exports have been steady.
As of now, China has the largest retail market. Europe has the second-largest online retail market and the United States comes right behind both.
With these world powers utilizing the online world for their trading purposes, it’s obvious why all other countries and businesses are utilizing the powers of the digital era to increase sales in exports.
Online Sales Makes it Easier to Purchase with Different Currencies
While technology isn’t perfect when calculating the fluctuating of currency values, technology does a pretty good job of measuring the value of different currencies.
They can also accurately exchange different currencies during the sales process.
These systems also incorporate taxes and cross-border eCommerce transaction rates, so the automation is convenient for buyers.
Strict Licenses are Usually Not Required
There are licenses required when exporting goods and importing them into other countries. However, they’re not difficult to obtain.
These licenses vary, depending on the country and what you’re selling or shipping.
Some countries, such as the United States, are stricter when products enter and exit the country. This especially applies to products such as alcohol, tobacco, and firearms.
Most International Items are Small and Cheap
A good point to keep in mind is most international items are smaller and cost less than 25 euros.
On average, items shipped internationally only weigh a pound (0.5kg) but items over ten pounds (+4kg) were reported being shipped.
In addition, most internationally purchased items are very cheap, costing between 10-50 euros ($11-$60 USD).
This could mean online shoppers in the B2B marketplace prefer spending little but shopping frequently.
More Ways to Catalog Products
Fortunately, there is a way around strict cataloging to prevent items being held at customs. For example, the United States can place a 10-digit HTS code on products that easily tracks the products and files them electronically.
There are also ways to have the data readily available when the package goes through shipping. Including an Export Control Classification Number (ECCN) on your package helps to keep the data on-hand, preventing delays in shipping.
Because of the cataloging facts stated above, there are more ways to deliver products and there’s an increase in faster delivery.
During the shipping process, the digital age has made it easier to identify what’s in packages and to track its shipment.
This information is transferred when the package reaches the country, and the postal operators can deliver the package to the recipients.
When a customer purchases a product online, they’re prompted to enter thorough information on the delivery. This data is transferred to the company, and the customer can easily track their delivery.
This is why international shipping can take as fast as a week.
In addition to shipping the products, only a small fraction of items are reported to be returned.
Shoppers are Purchasing Products from International Retailers
There are several powerful statistics stating shoppers are purchasing from international markets.
Consumers in the United States state purchase from countries such as China, Germany, and the U.K. 65% of these consumers state they buy products from retailers that support international shipping such as Amazon.
Each online shopper also makes at least one international purchase a year, some make an international purchase once a week.
These shoppers use payment services such as PayPal that easily calculates currency differences.
Shoppers Can Purchase International Goods Anywhere
It’s convenient for shoppers to purchase products on their phones and tablets. If anything, this is the preferred purchasing method.
While the desktop and laptop are still the two major electronics used to purchase online goods, smartphones are the ones used mainly by millennials.
The reason for this is the convenience of smartphones and the accessibility when shopping online.
Utilizing company apps also speeds up the ordering process.
Time to Conquer the B2B Marketplace
There are many reasons to start conducting international business.
Attracting the B2B marketplace is essential in power countries such as China and the U.K., but also for smaller countries such as Rwanda who are utilizing the internet more for trade and purchasing goods.
With the increasing technology, especially from smartphones and apps, consumers find purchasing products more convenient and businesses can easily track the shipment of their products.
There’s a lot of competition in the B2B marketplace. If you need assistance, contact us and we can help set you for B2B success.