Accelerating growth in the age of e-commerce

E-commerce is disrupting business models and growing at an exponential rate, especially in Asia-Pacific. This is largely due to changing consumer behaviours – in particular, accelerated demand for e-commerce since the pandemic.

The Asia-Pacific region is expected to drive 90% of global e-commerce growth between 2021 to 2026. Business leaders in the region looking to capitalise on this should now be investing in strategies that involve both sound partnerships and technology as critical elements.¹

These leaders must also work with their treasury teams and other colleagues to collectively understand the nuances and applicability of different e-commerce strategies. 

The foundation of a successful e-commerce strategy lies first in establishing robust risk management and appropriate cash management structures, to minimise payment friction for consumers and the broader business. This will require both internal and external collaboration.

One example might be to lean on treasury departments’ relationships with financial institutions to create joint marketing campaigns that increase gross merchandise volume (GMV) transacted online. Similarly, businesses using e-commerce platforms can also engage with banks to help their merchants access financing via non-traditional parameters, such as inventory levels and sales deliveries.

Technology has an increasingly vital role to play in e-commerce-enabling cash management. For example, virtual accounts allow e-commerce merchants to open corporate wallets with the functionality to receive sales collections and make third-party payments.

These virtual accounts, coupled with application programming interfaces (APIs), can also enable the automation of payments, saving e-commerce users time and ensuring greater reliability.

The rise of data analytics is also proving to be an important e-commerce enabler. Businesses in Asia-Pacific have an ever-increasing volume of consumer payment and transaction data. This data can be used to generate insights that support the fine-tuning of e-commerce business and marketing strategies.

Learn more about the crucial role business leaders and their treasury colleagues can play in shaping the e-commerce strategy. Download our white paper to find out how you can invest in partnerships to support your company’s e-commerce ambitions.
 

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¹CBRE, Omnichannel Retail and its Impact on Asia Pacific Real Estate, October 2022.