09 Nov Marketplaces expand cross-border e-commerce trade
E-Commerce has been a bright spot since inception and with the pandemic, the spotlight expanded further, and it is now the most sought-after industry with a consistent growth rate year-on-year. Between 2023 and 2028, cross-border e-commerce is expected to grow by 108 per cent and the merchandise value of this trade is expected to be a whopping US$1 trillion by 2030.
A major chunk of this growth is directly to attributed to the market demand of buying authentic and unique products from different geographies. This means e-commerce is the future of cross-border trade and for the same reason, leading e-commerce service providers to build a robust last mile delivery network and if required build its own fleet of aircrafts to rapidly carry shipments from the source to the destination.
Role of technology
However, this growth is incomplete without technology intervention. In order to make it more technology centric, utility of cargo community-based solutions is paramount. With community-based solutions, creating a separate ecosystem to seamlessly facilitate rapid movement of cargo is required.
Because the changing landscape of trade post the pandemic requires smart resilient solutions. Why? Here are the reasons.
Seamless management of disparate channels
Logistics industry is complex in nature and requires a lot more attention than before as the focus is on improving the efficiency. Even after several regulations and ease of doing business initiatives by governments, the industry continues to choke. In this case, a unified cloud-based solution such as a Cargo Community System can bring harmony to the overall trade by connecting all disparate channels and promote efficiency in trade.
Quick and cost-effective
In developing economies where ecommerce growth is exuberant, the logistics cost to the GDP is more than 15 per cent. Hence governments are tirelessly working to reduce this burden. In this case, implementation of a single window system like a cargo community system will make sure all documentation procedures are made online and templates to meet regulatory guidelines are readily available. This makes the overall ecosystem more seamless and cost-effective.
Seamless movement of perishables & pharma goods
Handling perishables and pharmaceutical shipments is now the talking point. It is argued that these specialized types of cargoes are not maintained in the right conditions while transported through air. Hence temperature monitoring and other aspects become very much essential. Cargo Community Systems come with an in-built mechanism to monitor temperature falls and pre-alert the responsible authorities to maintain it well.
Tech in cross-border eCommerce is inevitable
With technology intervention, e-commerce trade is evolving and meeting the rising demand. Multi-modal corridors are another aspect of high-level technology adoption in the logistics industry and these corridors are going to be future of cross-border trade and ecommerce is taking the baton forward to facilitate the same.