The E-commerce Frontier - How Local Smes Can Capitalise On Cross-border E-commerce

With cross-border transactions already accounting for approximately 31.2% of all global online sales and projected to grow 219% faster than global e-commerce as a whole through 2028, the market is expected to reach $5.06tn in sales within the next three years.

Despite this boom, cross-border trade remains a largely untapped opportunity for small and medium-sized enterprises (SMEs).

“That is set to change with e-tailers bold enough to navigate the global landscape standing a chance to reap huge benefits in the years to come,” says Gregory Saffy, managing director for sub-Sahara Africa at FedEx.

There are several important practices that businesses should keep in mind when wanting to expand outside of their home territory, says Saffy.

These include:

Localising for your target market – To boost global sales, SMEs must tailor their offering to local preferences. This includes researching your chosen market, translating product descriptions where needed, using local currencies, adjusting sizing or packaging, and aligning messaging with cultural norms.

Localisation builds trust and relevance, increasing the likelihood of purchase. Understanding regional buying behaviours and adapting accordingly helps brands stand out in competitive foreign markets.

Know your tax and customs obligations – Every country has unique import duties, including VAT rules and customs requirements, and it is important to research these thoroughly.

Transparency around duties and delivery timelines will help to prevent customer dissatisfaction. Staying compliant not only avoids legal trouble but also enhances credibility and paves the way for further global growth.

Offer multiple payment options – International buyers are more likely to complete a purchase when they have access to familiar and secure payment methods. Integrating globally renowned and reputable payment platforms that enable transactions in multiple currencies and across borders will improve conversion rates.

“Flexibility in payment options shows professionalism and meets the expectations of today’s sophisticated online shopper,” says Saffy.

Efficient and headache-free delivery is key to cross-border success – “Outsourcing logistics also allows businesses to focus on growth while reducing the operational administration burden,” says Saffy. Partnering with experienced logistics providers, such as FedEx, helps SMEs manage international shipping and customs clearance seamlessly.

For example, FedEx International Connect Plus (FICP) offers fast, cost-effective shipping designed for e-commerce packages weighing up to 20kg. The service offers day-definite international shipping, connecting e-tailers and consumers in just three to four business days.

"Providing businesses with a broader portfolio of shipping solutions that match their specific needs is a top priority for us at FedEx”, says Saffy.

“There will always be challenges when entering new markets, but with the right tools and support,” says Saffy.

“We believe that South African SMEs are well-positioned to seize the rewarding cross-border opportunities ahead.”