Report: Cross-Border B2C E-Commerce to Hit $1 Trillion in 2020
June 18, 2015
Cross-border B2C e-commerce will surge to $1 trillion in 2020, according to a new report from Accenture and Alibaba Group’s research unit, AliResearch. The global market for cross-border e-commerce, which sat at $230 billion in 2014, will grow at a compound annual rate of more than 27 percent over the next five years, and, the report said, most of that growth will be driven by China.
“The country’s large and growing middle class is hungry for authentic, good-quality foreign products,” the report said. “China’s middle class today is equal in size to the entire U.S. population and is expected to reach 630 million by 2022, according to management consultancy McKinsey.”
Increasingly, the report predicts, shoppers will look outside their borders to purchase goods online. While the number of online shoppers making domestic purchases will remain essentially flat, inching up from one billion last year to less than 1.2 billion in 2020, over the same time frame, the number of consumers engaged in cross-border transactions will explode. Last year, the report said 309 million consumers made a cross-border purchase. By 2020, that number will balloon to nearly 950 million.