The Office for National Statistics has pointed out a growing numbers of UK shoppers purchasing from the EU, with the proportion of UK adults buying from sellers from other EU countries is estimated to have increased from 12 per cent in 2008 to 23 per cent in 2014.
And EU retailers are pushing back. For example, Paris-headquartered online luxury retailer, Monnier Freres, announced it is going international using Borderlinx as the company’s international ecommerce partner.
Monnierfreres.com, which offers a unique experience with a selection of more than 150 designers, including Bottega Veneta, Gucci, Jimmy Choo, Marc Jacobs, Versace and more, is focusing on its international growth strategy as a result increasing interest is coming from cross border markets.
Over the first quarter of 2015, the top 5 cross border centres were USA (63 per cent), Australia (12 per cent), Middle East (6 per cent), South Korea (4 per cent) and Greater China (3 per cent).
Part of the increase is also being driven by the growth in ecommerce in China, with additional pressure on cost and optimisation. Yet other countries are also getting in on the act. PayPal data from 2013 showed that consumers in Argentina, Russia and Israel were among the top five fastest growing export markets (up to 168 per cent year on year growth).
“The cross border trend tied up with the Euro weakness makes buying luxury items from Europe a real opportunity for brands. The performance in the USA (63 per cent of the total volume shipped cross border in Q1) demonstrates that US shoppers seem to enjoy a curated collection from Paris, as long the user experience is as good as a domestic one,” said Jérôme Mercier, CEO, Borderlinx.
He says that uncertainty on true (or final) cost is the first barrier to cross border ecommerce, but that with Borderlinx, handling orders from around the globe is simplified. Consumers can trust they are paying the Landed Cost at checkout, including all import taxes and duties, while retailers enjoy the benefits of expanding their reach without the troubles of dealing with customs regulations, as well as complex logistics.