With the rapid advancement in Digital and logistics connectivity over the past decade, B2C e-Commerce is pacing its way to be a mainstream channel for retail. By 2020, over 2 billion e-shoppers, or 60 percent of target global population1, would be transacting 13.5 percent of their overall retail consumptions online, equivalent to a market value of US$3.4 trillion (Global B2C GMV, growing at CAGR of 13.5 percent from 2014 to 2020). Until now, B2C online transactions have been mainly domestic (supply and demand from the same nation); however, cross-border e-Commerce is taking over as the key growth engine to B2C trade, with a CAGR of 29.3 percent from 2014 to 2020.
Asia Pacific is leading the pack, not only in overall GMV, but also in volume growth of cross-border e-Commerce, contributing 53.6 percent of the incremental trade volume over the period of 2014 to 2020 (Figure 1). Western Europe and North America are trailing at 18.9 percent and 14.4 percent respectively; near-shore B2C transactions among EU countries is the driver behind a relatively high cross-border component in Western Europe. Remaining emerging regions would all experience rapid growth with domestic and cross-border at almost same pace, enjoying the maturity of borderless global commerce.