Cross-border commerce is becoming increasingly vital to merchants’ top line momentum.
Nowhere is that more apparent than in the report “The Emerging APAC Opportunity,” done in collaboration between PYMNTS and Citcon, where 500 business leaders from the United States, the United Kingdom and Canada weighed in on the current business they do in the region — and its attractiveness as a significant market, and revenue driver, in the future.
The region is already important to many companies, as 22% of these firms, overall, do business in APAC, as evidenced in the chart below, with more than 50% of Canadian merchants doing so and about 20% of U.S. firms with presence there.
On average, these merchants, including those in the U.S. generate 14% of their revenue from cross-border sales to APAC-based consumers.
Our data found that selling into APAC is especially attractive to omnichannel companies that have both physical and digital sales channels and retailers that sell exclusively on digital marketplaces. As many as 27% of omnichannel retailers have APAC customers.
As for future expansion plans — proof positive of APAC’s attractiveness — 15% of all North American and U.K. merchants that have not yet established an APAC presence intend to expand into the region in the next year. Drilling down a bit, firms based in North America are especially keen to establish an APAC presence, as 17% of merchants in the U.S. and 16% of those in Canada aim to do so in the next 12 months.
