9 in10 HK firms expect cross-border e-commerce to drive sales growth

The global B2C e-commerce sales will reach $46.7t (US$6t) this year.

Nine in 10 (90%) of Hong Kong companies anticipated cross-border e-commerce to drive sales growth in the next two years, according to a joint survey by The Hong Kong Export Credit Insurance Corporation and Hong Kong Trade Development Council (HKTDC).

Respondents said that cross-border e-commerce positively impacts their expansion plans whether via broader sales channels (69%), new market opportunities (50.3%), or enhanced brand awareness (48.9%).

“The World Bank estimates that global B2C e-commerce sales will reach US$6t ($46.7t) this year with Mainland China leading the way,” Patrick Lau, HKTDC Deputy Executive Director, said.

The scope of the market for Hong Kong traders covers markets, such as Mainland China (75.2%), ASEAN (53%), the US (42.2%), Japan (30.9%), and the EU (30%).

Firms hope to make use of risk management to avert challenges such as insurance for cargo transportation or payments (39.8%), e-commerce promotion (34.4%), and logistics services for both delivery and product returns (33.5%).

Moreover, 38.4% said that customs clearance procedures in Mainland China and foreign markets are complex, with 31.3% saying that product returns involve complicated procedures, and 29.8% finding it difficult to manage practical issues.

As for the issues of platform charges, exchange rates, and refunds, the high commission rates charged by third-party e-commerce platforms and long payment periods were identified as challenges by 51.1% of respondents.

Additionally, 84.9% noted that developing cross-border e-commerce presented market-related challenges, such as keen market competition. Meanwhile, 54% indicated regulatory issues, and 41.2% encountered financial challenges.