DHL asks African businesses to embrace cross-border e-commerce
The 2017 DHL Report has observed that new Cross border e-commerce is deepening provision of significant growth opportunities for retailers and manufacturers with an international online product offering.
The report noted that cross-border retail volumes are predicted to increase at an annual average rate of 25% between 2015 and 2020 (from USD 300 Billion to USD 900 Billion) – twice the pace of domestic e-commerce growth.
Vice President of Sales for DHL Express Sub-Saharan Africa, Steve Burd, says that this highlights a boundless opportunity for African businesses looking to take a piece of the cross border e-commerce pie.
However, Burd says that as the market leader in express logistics, DHL Express works with thousands of e-commerce customers around the world, with a lot of them at start-up phase. “We are therefore well aware of the perceived hurdles involved when considering to trade across borders.”
To him, there are five common areas which domestic e-commerce customers consider to be a challenge when deciding where to trade internationally including the cost of express shipping, Returns rates, and Basket values.
Burd also noted that available evidence shows that international customers will spend significantly more than local ones, saying “So even if international traffic to your website is small, it can be worth a lot for limited effort. There are free online tools available which will give you an indication of your international traffic on your website – this will provide an idea of which countries to focus your efforts on. There is no risk in opening doors to the international market – only the risk of getting left behind.”
On the fifth fact, DHL boss averred that unfamiliarity with customs procedures and processes is another key factor and noted that “This is where your choice of delivery partner comes in. If your paperwork has been done correctly, there shouldn’t be any customs delays or worries. Collaborating with an experienced partner that has extensive knowledge and know-how of customs procedures on the African continent will assist the business’ e-commerce offering to evolve.”
He argued that to further connect and support the e-commerce industry in Africa, DHL Express recently signed on as title sponsor for the 2018 DHL eCommerce MoneyAfrica Conference & Exhibition (Confex), taking place on 14 and 15 of March this year.
To him, “The DHL eCommerce MoneyAfrica Confex has established itself as one of Africa’s biggest opportunities to bring stakeholders in the fintech and e-commerce sectors together. This year’s event features presentations and knowledge sharing from an array of African and international thought leaders, geared at enabling participants to formulate innovative strategies to unlock more opportunities on the continent”.
