South Africa: How local SMEs can capitalise on cross-border e-commerce?
The rise of cross-border e-commerce trade is unlocking new opportunities for South African businesses eager to expand their reach and revenue.
With cross-border transactions already accounting for approximately 31.2% of all global online sales and projected to grow 219% faster than global e-commerce as a whole through 2028, the market is expected to reach $5.06tn in sales within the next three years.
Despite this boom, cross-border trade remains a largely untapped opportunity for small and medium-sized enterprises (SMEs).
'That is set to change with e-tailers bold enough to navigate the global landscape standing a chance to reap huge benefits in the years to come,' says Gregory Saffy, managing director for sub-Sahara Africa at FedEx.
There are several important practices that businesses should keep in mind when wanting to expand outside of their home territory, says Saffy.
These include:
Localising for your target market – To boost global sales, SMEs must tailor their offering to local preferences. This includes researching your chosen market, translating product descriptions where needed, using local currencies, adjusting sizing or packaging, and aligning messaging with cultural norms.
Localisation builds trust and relevance, increasing the likelihood of purchase. Understanding regional buying behaviours and adapting accordingly helps brands stand out in competitive foreign markets.
Know your tax and customs obligations – Every country has unique import duties, including VAT rules and customs requirements, and it is important to research these thoroughly.
Transparency around duties and delivery timelines will help to prevent customer dissatisfaction. Staying compliant not only avoids legal trouble but also enhances credibility and paves the way for further global growth.
Offer multiple payment options – International buyers are more likely to complete a purchase when they have access to familiar and secure payment methods. Integrating globally renowned and reputable payment platforms that enable transactions in multiple currencies and across borders will improve conversion rates.
'Flexibility in payment options shows professionalism and meets the expectations of today's sophisticated online shopper,' says Saffy.
Efficient and headache-free delivery is key to cross-border success – 'Outsourcing logistics also allows businesses to focus on growth while reducing the operational administration burden,' says Saffy. Partnering with experienced logistics providers, such as FedEx, helps SMEs manage international shipping and customs clearance seamlessly.
For example, FedEx International Connect Plus (FICP) offers fast, cost-effective shipping designed for e-commerce packages weighing up to 20kg. The service offers day-definite international shipping, connecting e-tailers and consumers in just three to four business days.
"Providing businesses with a broader portfolio of shipping solutions that match their specific needs is a top priority for us at FedEx', says Saffy.
'There will always be challenges when entering new markets, but with the right tools and support,' says Saffy.
'We believe that South African SMEs are well-positioned to seize the rewarding cross-border opportunities ahead.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a day ago
- Zawya
FedEx suspends all pickups for shipments to Israel and Iraq
FedEx said on Friday all pickups for shipments destined to Israel and Iraq will be suspended. (Reporting by Utkarsh Shetti in Bengaluru; Editing by Arun Koyyur)
Zawya
2 days ago
- Zawya
Logistics sector opens new tech-driven career paths for South Africa's youth
South Africa's youth unemployment rate remains a critical challenge at 62.4%, but the logistics industry is emerging as a key driver of job creation. Fueled by the growth of e-commerce, digital transformation, and expanding global trade links, logistics is evolving into a dynamic sector that offers diverse opportunities beyond traditional roles, particularly in tech and compliance. Source: DC Studio via Freepik Digital growth drives youth jobs in logistics "From supply chain analytics and IT systems integration to customer experience and compliance, logistics is evolving into a dynamic, tech-enabled industry that offers diverse professional avenues for South Africa's youth," says Gregory Saffy, managing director for sub-Saharan African operations at FedEx. While roles such as drivers, packers and sorters remain essential, new technology-driven processes are reshaping the industry and opening doors to careers in data analytics, systems thinking and automation. "Logistics isn't what it used to be,' Saffy explains. "The real competitive advantage now lies in digital capability, especially in areas like data analytics and systems thinking. We're seeing more engineers and analysts in the business than ever before, guiding operations and enabling automation at scale." Compliance and customs drive growth Compliance and customs clearance are also becoming major areas of employment growth. Saffy highlighted the progress towards formalising customs qualifications as a critical industry milestone. "We're seeing progress in the creation of a national customs clearance certification that will give individuals a recognised qualification, including those with practical experience but no matric pass," he says. "This will create a clear career path and raise the overall standard of compliance across the industry." Additionally, FedEx has begun enrolling customs clerks into courses covering freight forwarding and customs compliance. These programmes not only build technical knowledge but also focus on skills for the future such as digital literacy, data analysis and critical thinking. Learnerships bridge skills gap For youth without formal education, FedEx offers the Yes Learnerships, a 12-month programme combining training, mentoring and hands-on work experience. "Since 2019, we've onboarded more than 150 unemployed youth through YES, with more than 60 going on to become permanent employees," says Saffy. "It's a powerful model for bridging the gap between education and employment." The company also offers a learnership for youth with disabilities, awarding an NQF Level 4 certificate in Business Administration. This includes blended learning, coaching and real-world operational exposure, supporting inclusivity and building work-ready skills. Private sector backing youth jobs FedEx's initiatives, for example, underscore the vital role of private sector skills development in unlocking opportunities for South Africa's youth. 'Logistics is a gateway to global trade,' Saffy says. 'It's no longer just about moving parcels; it's about managing complexity in a fast-paced, tech-driven environment. With the right support and training, South Africa's youth can thrive in this space." All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Campaign ME
13-06-2025
- Campaign ME
Network of the Year (Middle East and Africa) 2024
Saatchi & Saatchi's Middle East network took the top spot for Network of the Year (Middle East and Africa) 2024 as a Silver winner at this year's Campaign Global Agency of the Year Awards. The network posted a notable 32 per cent year-on-year growth in 2024, underpinned by a disciplined return to fundamentals and a focus on integration. The Publicis Groupe's network's 'Power of One' model – connecting strategy, creative, and execution under a single point of contact – has become a core part of its pitch and delivery. Its Dubai, Riyadh and Doha offices showed steady progress and consistent creative performance – account wins in 2024 included Pfizer, Subway and Amazon. Internally, the agency reports 89 per cent employee retention – a rate that suggests its culture efforts are resonating, including learning and development initiatives focused on upskilling across creative, strategic, and technical disciplines such as AI tools aligning staff development with evolving client needs. It launched new AI-powered service offerings for clients, as well as PubCubs – offering aspiring talent the opportunity to experience the ad industry by supporting teams and contributing to client work. Bronze: TBWA (South Africa, Turkey, United Arab Emirates) Spanning the Middle East, Turkey, and Africa, TBWA's 1,000-plus employees, referred to as 'Pirates' grew revenue at double-digit rates, and welcomed almost 50 new clients aboard. Its work included honouring the late South African hip-hop icon Riky Rick, with TBWA\South Africa by turning his final social media posts into 'Stronger', a song created with AI to amplify his words; a high-fashion collaboration with 50 global luxury brands that elevated Istanbul's Beymen luxury department store brand; and a 120-metre CGI Nissan billboard lighting up Dubai's busiest highway, which hit five million views in 24 hours. This content was first published on Campaign UK.
