Introduction

Cross-border eCommerce sales are set to reach $627 billion by 2022, with the highest growth rate projected in regions outside of North America and Western Europe. Yet US merchants are not capitalizing on the growth of these global markets. Only 42% of surveyed US merchants said their eCommerce website accommodated global business. When looking for new potential for growth, international eCommerce represents a huge opportunity for North American merchants. Understanding and encouraging overseas consumers is essential for retailers looking to grow online sales and expand internationally.

2018 ecommerce growth projectionsMoving into new markets isn’t easy. Lack of familiarity with local shopping habits, language barriers, complex shipping and fulfillment needs, tax laws, foreign currencies, and confusion over payment methods are all deterrents that hold many merchants back. Fear of fraud only adds to this apprehension, as merchants worry not just about missed sales but active losses. But cross-border shoppers are a growth engine that can help generate new eCommerce revenue, and a sound, research-based expansion strategy can be key to gaining an edge on the competition.

Riskified compiled this report to share insights that help retailers confidently expand into new geographical regions. We explain why consumers are turning to cross-border shopping, outline what merchants need to consider in order to capitalize on this opportunity, and share best practices for effective fraud management when operating in new territories.