The size of global online shopping transactions has been showing annual growth. Global online shopping transactions are expected to rise from $1.5 billion in 2014 to $3.7 billion in 2020. In particular, the cross-border market size is expected to increase from $220 million in 2014 to $950 million in 2020. The growth speed of cross-border sales is much faster than the one of online shopping sales. That is, it is expected that the proportion of cross-border sales is going to continuously increase compared to online shopping sales. The proportion of cross-border sales in comparison with online shopping is estimated to rise from 14.6 percent in 2014 to 29.3 percent in 2020.
As a result, the number of companies seeking to tap overseas markets through cross-border sales is increasing exponentially, regardless of the size of the companies. In the case of large companies, it is common to conduct a business feasibility assessment based on in-depth market analysis by sufficient human and financial resources when contemplating whether to enter the new market through the cross-border sales method. For example, large companies can examine the possibility of cross-border business in a specific country(or market) in depth and more accurately prior to entering the new market through marketing experts who have been intensively conducting this task for a long time using typical market analysis tools (e.g., environmental analysis, 3C analysis, SWOT analysis, STP analysis, 4P marketing strategy, etc). In addition, they can even fully take advantage of their domestic & oversea business networks, and sometimes they even make a request to a consulting service provider for the sake of acquiring the expertise.
But can small and medium-sized companies be able to conduct these kinds of comparable market analyses? There will be many difficulties in reality. I can not give you a complete solution to this isssue, but I would like to introduce some tips that can be a solution to this problem through a direct or indirect way at minimal cost. That is "Distributor Analysis". The methodology is to understand how many sellers or distributors are selling a certain brand’s products in major online shopping malls in overseas markets where companies (or brands) want to enter through cross-border sales method. Second, check the lowest selling price of each product in the market's major online shopping malls to see if the brand's products maintain the MAP level or if the product is sold in the country at a price that the brand did not want.
While the aforementioned methodology may not be sufficient to understand the market, it may be necessary to be aware of the need to sell goods directly to online shopping malls in the country. Therefore, I would like to introduce you to a company (SEVEN-HUB) that has performed the Distributor Analysis service professionally for a long period of time. Based on the platform that SEVEN-HUB operates, it examines and analyzes the prices of hundreds of thousands of Asian online markets a day, and identifies sales trends using its database collected and accumulated by AI technology.
In fact, SEVEN-HUB’s main business is to help foreign brands conveniently register their products on its platform through API link with about 50 online shopping malls in six Asian countries (Korea/China/Japan/Taiwan/Hong Kong/Singapore). Furthermore, SEVEN-HUB performs all the processes and troublesome tasks required for selling brands’ products overseas online, which could be very complicated and might need several human resources for brands in dealing with crosss-border export tasks. For instance, SEVEN-HUB provides logistics service related to cross-border exports, details page translation work, customer service and marketing services for each country and marketplace. Actually, statistics show that using this platform has an average sales growth of about 38.5% compared to using other companies.
Through SEVEN-HUB's Distributor Analysis service, it recommends not only the market research data mentioned above, but also the best-selling price (MSRP) in case a brand would like to sell their products in online shopping malls in each country. In addition to MAP and Supply Price recommendation, it provides a total service that accurately estimates and confirms logistics costs. If you are considering entering Asia, a huge Asian e-commerce-oriented market that is more than three times larger than that of Western countries, I strongly recommend that you do not hesitate to contact SEVEN-HUB for counseling and service.