As a result of the growing eCommerce transformation, larger merchants in particular are transforming their business models to provide their items directly to customers (D2C).
To grow into new markets and other countries, they are doing so under this structure by forgoing outside distributors or depending on local retailers.
Levi’s has been expanding its direct-to-consumer business, which may eventually account for half of its revenue. Another example is the integration of Bold Commerce’s headless checkout process with the unified payments API by payment processor Citcon (API). Thanks to this integrated solution, retailers and D2C brands will be able to process and accept more than 150 different payment methods.
The most recent earnings results from Israel-based Global-e Online demonstrate that larger merchants are finding value in alliances and platforms to support the nuances and requirements of being “local” on a market-by-market basis, providing additional evidence that the company has the wind at its back.
The headline numbers show that during that period, gross merchandise volumes rose by 64% to $534 million from the previous year.
If we look more closely at how platforms offered by businesses like Global-e Online are being used for cross-border trade, we see that the rise in income for fulfillment services far outpaced that of service fees. 55% of all purchases, or $47.9 million, or a 63% increase in fulfillment revenue.
Management reported improved growth in the U.S. outbound business on the conference call, with sales from that corridor rising by 104% year over year. On the call, CFO Ofer Koren also noted that there had been a “significant comeback” despite lower eCommerce demand in Europe in March and April as a result of the war in Ukraine. Demand surged and remains robust throughout May and June. He claims that in an effort to reach customers, more companies are embracing the shift to digital platforms.
Possibility of Great Size
Furthermore, CEO Amir Schlachet mentioned that there is still a “great opportunity” for D2C trading during the conference call, particularly in regions like APAC and the Middle East where outbound GMV volumes surged by more than 215%. According to observations made during the conference that concentrated on certain verticals, there has been a “slight decline” in sales of sports goods and clothing as people are returning to work and office environments.
