Independent survey examined perceived opportunities and challenges for US small to midsize businesses in the global online marketplaceE-commerce decision makers see value in a single digital platform and streamlining acquiring and payment providers to optimize e-commerce strategies
A new study commissioned by Wirecard and conducted by Forrester Consulting has identified the greatest opportunities and challenges for small and midsize businesses in the United States, and concluded that digital payment providers with global capabilities may offer the most optimal strategies for merchants’ e-commerce success. E-commerce sales worldwide topped $1.9 trillion in 2016 and are set to reach more than $4 trillion by 2020, representing about 15 percent of global retail spend.
“In 2019, cross-border sales represent the greatest opportunities and the greatest challenges for companies engaging in online retail. Retailers need operational and technological capabilities that are fully streamlined and can handle exponential growth in traffic and transactions, thus helping them reach the global market with the greatest ease and efficiency,” said Deirdre Ives, Wirecard’s Regional Managing Director North America.
In late 2018, a commissioned study conducted by Forrester Consulting on behalf of Wirecard asked 200 decision makers at midsize US companies about their capabilities, goals, and challenges around global e-commerce. Forrester uncovered several common priorities and challenges:
- At least half of respondents’ companies intend to increase their current selling levels to four key markets: Europe, Asia, Canada, and Central America - 87% said cross-border growth is a critical or high priority over the next two years- At the same time, less than 1/3 of respondents expect their current technology stack to completely meet their needs in 2020
In addition, researchers uncovered several key factors influencing global e-commerce success, many around compliance, security, and customer service. Additionally, nearly three quarters of companies surveyed partner with at least three providers to satisfy their cross-border e-commerce needs – and more than half of those have encountered problems working with multiple providers. Nearly all said that payment acceptance capabilities are critical to their global e-commerce programs.
“While cross-border e-commerce is a low-investment route to tap into opportunities abroad, it is no small feat. At minimum, companies must adopt modern security capabilities and local payment methods and adhere to local laws and regulations,” the researchers wrote in their study. “Success depends on access to strategic partners that can connect them to global customers, support local payments with value-added capabilities, and help them reduce operational complexity and risk.”
“These insights tell us that Wirecard has all the capabilities and solutions that businesses value most in their journey to global e-commerce,” said Kevin Brown, Vice President of Marketing and Strategic Partnerships, North America, at Wirecard. “We offer a proven digital financial commerce platform, extensive global regulatory expertise, a worldwide banking network, the capacity to accept 27 currencies and counting, and unparalleled customer service. We’re very excited to work with all kinds and sizes of companies to help them play on the world stage now and in the years to come.”