Newegg emerges as a dark horse and is listed as China's excellent cross-border e-commerce platform

In the global cross-border e-commerce market, the North American market remains the largest target market for Chinese cross-border export sellers, with a market size far ahead .

The North American market has become the first choice for sellers from major platforms due to its high online shopping penetration rate , strong consumer power, complete logistics and payment service system, and abundant channel platforms .

On February 25, 2021, iResearch, a well-known Chinese market research organization, released the latest annual development report on China's cross-border export B2C e-commerce in 2020-2021. With its strong operations and deep cultivation in the North American market , Newegg has become an emerging export cross-border e-commerce platform in 2020, and has been listed as an excellent cross-border e-commerce platform and an excellent logistics third-party service provider.

In addition, the report also mentioned the performance of China's cross-border e-commerce export in the North American market in 2020, with a transaction volume of about 460 billion yuan last year . Under the continued impact of the epidemic, China's cross-border e-commerce export will still maintain an annual growth rate of 20%-30% , and the market size is expected to exceed 700 billion by 2022 .

For sellers, model , operation and logistics are still the three most important factors to consider when going overseas.

Data shows that in 2020, online retail sales in North America will account for 19.1% of the world's total . Due to factors such as the large number of Internet users and strong purchasing power , North America will remain the largest destination for China's cross-border exports and the primary target for many sellers .

As of May 2020, the United States and Canada had a total of 329 million Internet users, with a penetration rate of 94.6%, far higher than the global average. According to World Bank data, North America's per capita GDP in 2019 was $64,300, about 1.75 times that of the second highest consumption region - Europe and Central Asia, and far higher than the world average of $17,600.

In 2020, the online retail penetration rate in North America increased from 10.7% in 2019 to 14.0% . China's cross-border export retail e-commerce targeting North America is expected to achieve a compound growth rate of 31.3% from 2019 to 2022, reaching a scale of RMB 747.9 billion.

There are two major changes in the categories of products exported by China to North American retail e-commerce: first, the export entities have evolved into branded enterprises , and the brand premium ability has increased . In 2019, the export of self-owned brand goods was 2.9 trillion yuan, an increase of 12% .

Second, the categories of the leading platforms have expanded , and the gap between the proportions of various categories is narrowing. Users' impression of traditional platforms is no longer limited to advantageous categories. During the epidemic, household and office supplies exploded, driving the overall sales of cross-border export retail.

There are two main methods of cross-border export logistics in the North American market: direct mail and overseas warehouse delivery . Calculated by order volume, direct mail accounts for about 50.8%. Cross-border direct mail is easy to start with and has a low threshold. It is suitable for small and medium-sized sellers and non-standard products with many categories and low sales .

However, its delivery time and cost are easily affected by factors such as seasons, and it has many delivery links, long processes, and poor customer experience. Overseas warehouses, on the other hand, allow companies to ship goods directly abroad through self-operated warehouses, platform-certified third-party service providers, and self-built warehouses, to maximize contract fulfillment capabilities and time advantages.

iResearch analysts predict that in the future, in-depth innovation of overseas warehouses and self-built warehousing may become the core breakthrough point for platforms to improve services and penetrate sellers.

Newegg

China

Cross-border e-commerce platform