B2B online e-commerce payments in emerging markets, like India, experience a high-failure rate, according to a report by consultancy Ernst & Young.
The issue presents a grave challenge to India’s rapidly growing market for B2B e-commerce. Cross-border B2B e-commerce sales have grown over 400 percent in the past three years to reach $1.5 billion, according to statistics from the Federation of Indian Export Organizations.
According to a report by the Federation of Indian Export Organizations (FIEO), exports through the e-commerce route have grown over 400 percent to $1.4 billion in the past three years. It is growth numbers like these that are causing a groundswell of interest and activity in building out B2B e-commerce sites in emerging markets.
Part of the reason driving this growth spurt is that, in 2012, foreign investors were allowed to invest in B2B e-commerce firms in India. Such firms can now sell up to 100 percent of their equity to foreign businesses (whereas B2C e-commerce companies can only sell 50 percent).
Cross-border e-commerce makes exports accessible to India’s 26 million small- and medium-sized enterprises. But many are not earning enough from their investment in e-commerce due to the challenge of receiving secure payments online. So in all the frenzy of e-commerce in emerging markets, it bears remembering that commerce isn’t commerce until you get paid. Traxpay can help with that.
As the pressure to succeed in B2B e-commerce becomes ever greater, companies may be tempted to leap before they look as the opportunity for cross-border commerce increases. At Traxpay, we applaud the entrepreneur and share in the excitement as we all go forth to stake a claim in the rapidly growing B2B e-commerce arena, but be sure to take care of the basics when it comes to B2B transactions—and make sure you can get paid.