U.S.-based technology company, Pitney Bowes, which among other activities, offers products and solutions for the global E-Commerce industry, has formed a Global E-Commerce business unit, which combines recently acquired Borderfree with Pitney Bowes’ existing E-Commerce business. The cross-border E-Commerce market is expected to reach US$1 trillion in 2020.
Heading the new unit as president is Lila Snyder, who has been leading the integration of Borderfree into Pitney Bowes since early May.
Snyder, who previously served as president of Document Messaging Technologies (DMT), joined Pitney Bowes from McKinsey and Co. in November 2013. Pitney Bowes will provide more detail about the Global E-Commerce business unit on July 30th.
According to a report from global consulting firm Accenture and AliResearch, Alibaba Group’s research arm, the global B2C cross-border e-commerce market will balloon in size to US$1 trillion in 2020 from $230 billion in 2014.
In the report, “Cross-border B2C E-Commerce Market Trends,” researchers forecast that this form of online shopping will see compound annual growth of 27.4% over the next five years, double the rate of worldwide B2C shopping as a whole.
China will become the driver of E-Commerce
By 2020, more than 900 million people around the world will be international online shoppers, the report says, with their purchases accounting for nearly 30% of all global B2C transactions.
The report also noted that China is expected to drive much of the growth of cross-border e-commerce in coming years because the country’s large and growing middle class is hungry for authentic, good-quality foreign products.
China’s middle class today is equal in size to the entire US population and is expected to reach 630 million by 2022, according to management consultancy McKinsey.
China will become the largest cross-border B2C market by 2020, with the transaction volume of imported goods purchased online reaching US$245 billion, according to Accenture-AliResearch. The report predicts over 200 million Chinese consumers will be cross-border shopping in five years.
Nol van Fenema