2020 has proven tough for brick and mortar businesses worldwide. A lot have had to shut their doors after many years of operation. But what's that saying ... One door closes, another opens? E-commerce has proven to be a giant door opening. It is the saving grace for some businesses, whilst simultaneously being the sales record-breaker for others. China is renowned and envied for its e-commerce model, import and exports, coming and going every second of every day to keep up with demand. These numbers reflect the online shopping frenzy that 2020 has inadvertently provided and the changes throughout China that have pathed the way for even more growth in the world of e-commerce.
You may think of China as only a major exporter with companies like Wish, AliExpress and Alibaba having complete product lines that contain products manufactured by China. But this year's imports alone stand at over 310 billion dollars (Australian) and that number is still growing. Chinese consumers appreciate the quality of products the world has to offer and they're not shy of spending money. Consequently, they also love to sell. Exports current value for this year sits at 256 Billion.
When we look solely at imports into China. $125 billion (out of the $310B )is online shopping revenue. Meaning that nearly half of imports has e-commerce as its driving force.
There are varying factors as to why these numbers can continue to grow. One of the most important relies on transaction amounts on cross border purchases. Think of if it like this, if you've ever gone to the supermarket and had to put an item back because you misjudged your budget. Now imagine that times a billion. That's a lot of product not being purchased. But now the limit per transaction per person has increased to $1,033 from $414 which is over double. That's a lot more money waiting to be spent in a single click.
When you think of pricier items like luxury fashion pieces, jewellery and technology etc. You can see how these limitations would have had a negative effect on certain items not being able to be purchased from cross border sources. The continual changes being made to transactions limits help to broaden the search for Chinese consumers to purchase what they really want.
The annual purchase per person is also growing. It rose from $4,126 to $5,368 AUD. It might seem that compared to other figures it's rising at a slower rate, but when you multiply it by the current approximate population it's still a lot of money to go around on cross border e-commerce purchasing.
The figures for crossborder e-commerce continue to show signs of growth and no sign of slowing down soon. If cross-border E-commerce keeps going the same way it is now, it will soon dominate the market in China. Businesses worldwide can monetize off this trend they just need the right tools and the right education.
Thank you for reading.
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**Statistics found on Statista**