Cross-border e-commerce between the U.S. and several other countries may change soon, due to factors such as the NAFTA renegotiation and Brexit.
Possible disruptions to trade relations between China and the U.S. may also affect the latter country’s e-commerce trading activity, other than its trade relations with Canada, Mexico, the UK, and members of the European Union.
The anticipated changes will make competitive pricing tools and technologies, such as a PriceManager software, to be more relevant to online retailers. By 2021, more than $1 trillion of sales will be derived from global cross-border e-commerce based on existing trade policies. For this reason alone, businesses should start rethinking their approach to digital retail.
Still, the expected amount of sales may be affected with some protectionist regulations, such as tariffs and new customs rules on cross-country trade. In China, for instance, US retailers struck a gold mine in selling their products or services to Chinese shoppers, but the new American administration may affect the relationship between the two countries.
Talks of major changes to the global e-commerce industry has led some to question the future of physical stores in the US.
Digital retail may still need to wait longer before becoming the go-to resource for consumer purchases. That’s because almost all of the top 10 US retailers comprise brick-and-mortar chains. Their continued operations represent consumers’ buying preferences: people still like to shop in a physical store. CBRE, in fact, said that 70% of millennials in the U.S. and the rest of the world prefer physical shops.
Still, there’s no doubt that e-commerce continues to boom since most traditional retailers have begun to include digital retail strategies to their business.
As different factors facing the e-commerce market signal sweeping changes, how do you plan to keep up with competition and keep your business afloat at the same time?