International cross-border e-commerce solutions provider Borderfree has added 120 more countries and 15 more currencies to expand its platform to more than 220 countries and territories worldwide, including high potential emerging luxury e-commerce markets, and is building up its UK presence.
The Pitney Bowes subsidiary removes the barriers to international cross-border e-commerce with proprietary technology and services that allow retailers, especially US- and UK-based companies, to easily market and sell to consumers in every corner of the globe. The company works for some 175 retailers in the USA and has signed up 11 British firms, including the world-famous Harrods store.
Borderfree manages all aspects of the international shopping experience, including site localisation, multi-currency pricing, payment processing, fraud management, landed cost calculation, customs clearance and brokerage and global logistics services while maintaining the integrity of customers’ brands and the consumer experience.
“E-commerce is inherently global, and we are leading the charge to help retailers sell from anywhere to anywhere,” said Lila Snyder, President, Global Ecommerce at Pitney Bowes Inc. “This expansion of our platform illustrates Borderfree’s consistent efforts to grow global awareness and sales for our retail partners, and to position them for success in marketplaces that are on the cusp of significant growth.”
On the UK expansion, she commented: “We’re thrilled to launch in the UK with eleven iconic British brands on our platform. UK retailers are some of the most sophisticated in the world, and we’re excited about the opportunity to unlock international demand and scale global online sales through Borderfree’s platform. The UK ecommerce sector is already quite mature, and the vast majority of major retailers have been offering international sales and shipping for some time. Borderfree simplifies and improves that process; lowering barriers by making it easier for consumers to shop and simple for retailers to meet that demand.
“The insights we provide enable our clients to identify key markets with latent demand, and our technology allows retailers to target consumers with tailored marketing messages, so shoppers only see online content that is relevant to them, no matter where they are based. It’s been a powerful model for our American clients and we’re excited to work with British brands to bring their rich retailing heritage and unique products to global consumers.”
Key emerging luxury markets Borderfree will now sell to include Nigeria – a growing economy that could more than triple in size to $1.6 trillion by 2030, becoming a top 20 economy, according to McKinsey Global Institute – and Kazakhstan, which is forecasted to reach $5 billion in ecommerce activity by the end of 2017, according to the country’s Ministry for Transport and Communications. Both markets offer strong opportunities for ecommerce expansion thanks to increasing smartphone saturation and discretionary spending.
Collectively, emerging markets like Nigeria and Kazakhstan represent a long-tail opportunity that is expected to reach $30 trillion by 2025 in retail market share. Due to limited brand choice and lack of access to luxury products, consumers in these markets tend to be more receptive to shopping from international retailers — converting at a higher rate and spending a higher average order volume than consumers in more mainstream markets – making it an important time for international retailers to establish their presence.
“The long-tail market opportunity we’ve added to the Borderfree platform presents a compelling growth opportunity retailers wouldn’t be able to tap into on their own,” added Snyder. “We are excited to provide our merchants with a turnkey way to reach a new frontier of international customers that promises to continue to grow for the foreseeable future.”
Pitney Bowes completed the acquisition of Borderfree for $395 million and integrated the company with its existing e-commerce business in a newly formed Global Ecommerce business unit earlier this month. Borderfree generated $125 million in revenue in 2014.
