With cross-border transactions already accounting for over 31% of global online sales and forecasted to grow 219% faster than overall global e-commerce through 2028, international trade presents a significant untapped opportunity for small and medium-sized enterprises (SMEs). The global cross-border e-commerce market is expected to reach $5.06 trillion in sales within the next three years.
Despite this remarkable growth, many SMEs have yet to embrace cross-border expansion. According to Gregory Saffy, managing director for sub-Saharan Africa at FedEx, this is expected to change as more e-tailers begin to navigate the complexities of international markets in search of higher profits and wider customer bases.
“E-tailers bold enough to navigate the global landscape stand a chance to reap huge benefits in the years to come,” Saffy said.
Key practices for SMEs eyeing global growth
1. Localisation is crucial
Saffy emphasises the importance of tailoring offerings to the preferences of target markets. This includes translating product descriptions, displaying prices in local currencies, adapting sizing and packaging, and ensuring messaging aligns with cultural norms. Localisation builds trust and boosts relevance, improving conversion rates in foreign markets.
2. Understand tax and customs rules
Every country has unique import duties, VAT structures, and customs regulations. Saffy stresses that transparency regarding duties and delivery timelines is vital to managing customer expectations. Staying compliant also reduces legal risks and boosts long-term credibility.
3. Offer familiar payment methods
Global shoppers are more likely to complete transactions if their preferred payment options are available. Integrating reputable international payment platforms that accept various currencies is essential. “Flexibility in payment options shows professionalism and meets the expectations of today’s sophisticated online shopper,” Saffy said.
4. Streamline delivery logistics
Reliable delivery is critical to cross-border success. Saffy recommends partnering with experienced logistics providers to manage customs clearance and international shipping efficiently. FedEx, for example, offers solutions like International Connect Plus (FICP), which provides day-definite delivery for e-commerce parcels up to 20kg within three to four business days.
“Providing businesses with a broader portfolio of shipping solutions that match their specific needs is a top priority for us at FedEx,” he added.
A promising path for SA businesses
While challenges exist in navigating new markets, Saffy believes South African SMEs are well-positioned to capitalise on the cross-border e-commerce boom. With the right tools, localisation strategies, and logistics partners, local businesses can unlock growth and establish a global footprint.
“There will always be challenges when entering new markets,” Saffy said, “but with the right support, the rewards can be substantial.”