WorldFirst has launched an e-commerce growth solution to help UK SMEs trade globally. Through the solution accessible via the World Account, SMEs need just one account which has a simple set-up process to start cross-border e-commerce trade.
The World Account brings down the costs of making an international transfer for SMEs. Typically these costs which span compliance, FX and payment operations account for 2-3% of the value of a transfer, but with the World Account, this is reduced to less than 0.75%, according to WorldFirst industry analysis. This helps SMEs boost their margins to sustain long-term business growth.
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Bruce Ding, General Manager of WorldFirst International Business, said: “Against this backdrop, there’s an excellent opportunity for many more UK SMEs to tap into the opportunities of international trade. Despite the complexities involved in cross-border e-commerce, with the support of external partners like us, we’re seeing SMEs are increasingly optimistic about the opportunities presented by exporting overseas.
In 2022, the total cross-border e-commerce market in Europe, including the United Kingdom, amounted to a turnover of €265bn (excluding travel). Of this total, €167bn, or 63%, was generated by marketplaces. However, European countries are falling behind compared to those across South America and Asia, where multiple markets have seen significant growth in e-commerce sales, according to eMarketer.
Over half of sellers using WorldFirst’s cross-border e-commerce solution are Gen Z or Millennial
WorldFirst finds that more than 50% of sellers using its cross-border e-commerce solution are Gen Z or Millennials, suggesting these generations of business leaders are more aware of global e-commerce opportunities.
However, challenges, ranging from the complexity in international payment and foreign exchange, payment fraud, and hidden service charges, still put away aspiring business owners, threat survival of start-ups and undermine durability of existing businesses.
To help solve these challenges, UK SMEs can streamline international operations by partnering with external vendors. UK business owners can open a World Account within minutes to be able to trade like a local around the world. The account supports payment collection with 14 local or cross-border accounts and pay-out in more than 40 currencies to over 130 countries and regions. WorldFirst’s extensive partnerships with key e-commerce platforms facilitate seamless cross-border transactions.
