FedEx Express: Unlocking Cross-Border Revenue Growth

This presentation at DELIVER Europe 2024, delivered by Chris Hodge, E-commerce Marketing Manager at FedEx Express, focused on strategies and solutions for businesses to unlock cross-border revenue growth and navigate the complexities of international ecommerce.

The Cross-Border Ecommerce Opportunity

Hodge highlighted the significant growth potential of cross-border e-commerce, citing statistics that:

• Cross-border e-commerce sales are on pace to reach $8 trillion by 2032.
• Cross-border sales are growing at twice the rate of domestic ecommerce sales.
• By 2028, one out of every three dollars spent online will be cross-border.

He emphasised that European businesses are well-positioned to capitalise on this opportunity due to the mature domestic ecommerce market and the increasing demand for European goods globally.

Drivers of Cross-Border Purchases

Hodge identified several key drivers of cross-border purchases:

• Affordability: Consumers seek the best prices, regardless of the seller's location.
• Product Variety: Cross-border shopping offers access to a wider range of products not available domestically.
• Quality: European goods are often perceived as higher quality, justifying premium prices.
• Lower Shipping Costs: Efficient shipping solutions can make cross-border purchases more appealing.
• Fast Delivery and Returns: Quick and reliable delivery and returns are crucial for customer satisfaction.

Overcoming Barriers to Cross-Border Ecommerce

Hodge acknowledged the challenges of cross-border ecommerce, including concerns about expensive shipping, long delivery times, authenticity, returns, and customs procedures. He outlined strategies to overcome these barriers:

• Website Optimisation: Creating an authentic and localized website experience, including translations, tailored product selections, and relevant payment and delivery options.
• Transparency: Providing clear information on duties and taxes, shipping costs, and returns policies to avoid surprises and build trust.
• Efficient Logistics: Partnering with reliable carriers like FedEx to ensure fast and cost-effective deliveries and returns.

FedEx Solutions for Cross-Border Ecommerce

Hodge highlighted FedEx's suite of solutions designed to support cross-border ecommerce:

• FedEx Ship Manager: An online platform that simplifies shipping, provides customs documentation support, and integrates with major marketplaces.
• Delivery Options: A range of delivery options, including FedEx International Connect Plus, International Priority, and International Connect, to balance speed and cost.
• Out-of-Home Delivery: A growing network of retail pickup and drop-off points, offering convenience and flexibility for consumers.
• Returns Solutions: Flexible returns options, including a global returns program and partnerships with technology providers like ZigZag, to simplify returns and reduce costs.
• Customs Expertise: Tools and resources to help businesses navigate customs regulations and ensure smooth cross-border shipments.

Key Takeaways

• Cross-border ecommerce presents a significant growth opportunity for European businesses.
• Website optimisation, transparency, and efficient logistics are crucial for success.
• FedEx offers a comprehensive suite of solutions to support cross-border ecommerce.
• Partnerships with technology providers enhance capabilities and streamline processes.
• Sustainability is a growing consideration for both businesses and consumers.

By leveraging these strategies and solutions, businesses can overcome the challenges of cross-border ecommerce, unlock new revenue streams, and enhance the customer experience.