By Joshua Halpern, Chairman of Getting to Global’s Grow Big Initiative, AKA The @VanBassador
10 in 5: 10 Ways Cross-Border eCommerce Will Change in the Next 5 Years
In the fast-evolving world of eCommerce, cross-border transactions are on track to account for one-third of all online sales by 2028, amounting to $7.3 trillion in global revenue. Over the next five years, businesses will experience transformative shifts, driven by regulatory changes, technology advancements, and consumer preferences. Here are 10 key ways cross-border eCommerce is set to change by 2028, and what these changes mean for global sellers.
Regulatory Changes Become Simpler and Smarter75% of countries have implemented changes to cross-border tax regulations in the past two years, with 70% expected to alter de minimis rules by 2027.Imagine a world where complex international tax rules no longer hinder small businesses from scaling globally. AI will drive real-time updates to Harmonized System (HS) codes and streamline compliance across borders, simplifying processes like duty drawbacks. For instance, an artisanal soap maker in Portugal can now sell across 50 countries with confidence, knowing that their returns process is frictionless and real-time tax adjustments are automated, boosting both cash flow and customer trust.
Payments and Fintech Revolution Will Streamline Transactions73% of stablecoin transactions are expected to be cross-border by 2028, accounting for $187 billion in value.Picture an eCommerce landscape where stablecoins are used globally, and AI automatically handles currency conversion for every transaction. This transformation will reduce barriers and make cross-border payments seamless. A clothing retailer expanding into Latin America no longer has to worry about fluctuating currency rates; AI ensures suppliers are paid on time and at the best rates, resulting in smoother operations.
Sustainable Goods Will Dominate Consumer Preferences87% of consumers are willing to pay more for products from environmentally responsible brands.Consumers are demanding more from brands when it comes to sustainability. Imagine a world where retailers must adhere to eco-friendly regulations just as strictly as they comply with health and safety standards. For example, a clothing brand using recycled materials will need to manage a closed-loop recycling system to thrive in this future. As governments offer tax incentives, brands that prioritize sustainability will see both sales and cost advantages soar.
Web 3.0 and Virtual Reality Shopping Experiences25% of global consumers are expected to use virtual reality by 2030, transforming how people shop online.The future of online shopping will be immersive and interactive, thanks to VR and Web 3.0 technologies. Imagine stepping into a virtual fashion hub where you can feel the texture of a shirt before buying it, all while consulting an AI stylist. This will redefine international shopping experiences for consumers who seek to engage with global brands like never before.
Fraud Mitigation and Compliance Will Get Automated79% of merchants believe that cross-border fraud is increasing, while the cost of fraud last year reached $130 billion.As fraud rates rise with the increase in global transactions, AI-powered tools will transform fraud prevention. Imagine a luxury handbag retailer minimizing chargebacks with advanced transaction monitoring. These systems will cross-check fraud databases in real time, allowing businesses to save hundreds of thousands annually in lost sales due to fraudulent activities.
Hyper-Localized Manufacturing Will Become MainstreamLabor costs in emerging markets are expected to rise by 40% by 2030, narrowing the traditional cost advantages of offshore manufacturing.Hyper-localized manufacturing, supported by AI-driven automation, will close the cost gap between emerging and developed markets. Picture a U.S.-based glitter sunscreen company that reshores its production from China to local plants, reducing delivery times and overcoming import taxes. This strategy allows them to personalize their packaging for local markets, creating a powerful competitive edge.
Content Localization Will Be Instantaneous72% of global eCommerce sales are projected to come from emerging markets by 2025, and 59% of consumers are more likely to make a purchase if the website is in their native language.Imagine selling a product in multiple countries without needing a team of translators. AI will localize content in real time, adjusting language, visuals, and cultural references instantly. A global shoe brand, for example, can tailor its entire online presence for different markets without hiring local agencies, saving millions in the process.
Logistics and Fulfillment Will Get Faster and More Efficient88% of consumers say free shipping is the most important factor in their purchasing decisions, and logistics costs could drop to 6-8% of COGS with AI and blockchain.Free shipping is the gold standard for eCommerce, and last-mile delivery will evolve exponentially. Think of a U.S. wine seller using drones to deliver orders internationally within 36 hours. With improvements in AI, IoT, and blockchain, cross-border logistics will be
cheaper and faster, allowing smaller businesses to compete on a global scale.
Customer Service Will Be Powered by AIThe AI chatbot market is growing at a 22% CAGR, and 62% of consumers prefer digital assistants over waiting for human agents.Imagine a home rowing machine brand offering real-time, multilingual customer service via AI chatbots. These bots will assist customers with everything from technical support to real-time order tracking, improving after-sales service and boosting customer lifetime value. AI will also ensure that even complex queries are handled without the need for human intervention, making global customer service seamless.
Channel Evolution Will Empower Niche Markets50% of global eCommerce will come from giants like Amazon and Alibaba, yet niche markets are growing at a 12% CAGR, especially in areas like pet products and beauty subscription boxes.
Despite the dominance of giants like Amazon and Alibaba, niche markets will thrive. Picture a Utah-based rock-climbing gear retailer leveraging TikTok and Instagram to engage with a global community of climbers. By partnering with local influencers and optimizing direct-to-consumer sales channels, they will bypass traditional marketplaces, maximizing both margin and customer loyalty.
By understanding and embracing these shifts, businesses can position themselves to succeed in the booming cross-border eCommerce landscape, poised to reach $7.3 trillion by 2025.
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