According to a recent report by Global-e, a leading provider of cross-border e-commerce solutions, the United Kingdom experienced a substantial surge in outbound cross-border online sales in 2020. The comprehensive analysis, which delved into data from over 270 UK retailers and brands engaged in international trade through the Global-e platform, uncovered a remarkable 57% increase in cross-border e-commerce transactions throughout the year.
Of particular interest was the notable spike in cross-border e-commerce sales during the festive month of November, showing a significant 42% year-on-year uptick. This upward trend persisted during the holiday season, indicating a growing consumer confidence in purchasing from global retailers.
Despite the challenging backdrop of the COVID-19 pandemic and the uncertainties surrounding Brexit, the report highlighted a noticeable rise in demand from both EU and non-EU clientele for UK products. While non-EU markets had initially shown stronger demand throughout most of the year, EU consumers notably boosted their shopping activity with UK retailers during the final ‘Golden Quarter’, particularly during the Black Friday and Cyber Monday sales events.
Neil Kuschel, CEO Europe at Global-e, underscored the vital role of international trade for UK retailers and brands, especially in the face of intensifying competition within the domestic market. He pointed out that the acceleration of online retail has ushered in a new trend where desktop platforms are increasingly favored for cross-border purchases.
The report also suggested that the heightened interest from EU consumers may have been prompted by concerns regarding post-Brexit access to beloved UK brands, with a trade agreement between the UK and the EU only finalized in late December. This highlights a potential challenge for UK retailers as they strive to retain their EU customer base in the future.
In essence, the surge in cross-border e-commerce sales in the UK underscores the indispensability of international trading for retailers and brands seeking to broaden their horizons beyond local markets. Despite the uncertainties surrounding Brexit and the pandemic, there exist significant prospects for UK businesses to tap into the surging demand from overseas consumers, both within and outside the EU. Ultimately, the report emphasizes the imperative for UK retailers to embrace e-commerce as a pivotal strategy for fostering future growth and success in an ever-evolving retail landscape.
For more insights on cross-border e-commerce trends and strategies, visit Global-e. Additionally, stay updated on the latest industry developments by following Digital Commerce 360.
