There is no denying that digital technology has become a driving force behind industrial competitiveness and business operations worldwide. This technological revolution has not only increased productivity but has also contributed significantly to higher exports, job creation, and economic growth on a global scale. And when we turn our attention to Cambodia, it's evident that the nation is no exception to this transformative wave.
Cambodia's e-commerce sector is experiencing remarkable growth and has been predicted to become one of the fastest-growing e-commerce markets in the region. This growth is so profound that even the Cambodian government recognised its significance and enacted the Law on Electronic Commerce (E-commerce Law) in 2019, to regulate and facilitate the burgeoning e-commerce landscape.
At DHL Express, we recognise the pivotal role of transport and logistics in sustaining and expanding businesses, both locally and globally.
After all, companies across the world have to rely on logistics and shipping solutions to securely, promptly, and efficiently deliver their shipments to diverse destinations, with the aim of facilitating e-commerce growth. As such, finding the right logistics partner is crucial for businesses aiming to succeed in this dynamic e-commerce environment.
So, how can DHL Express empower e-commerce businesses in Cambodia to unlock the full potential of international expansion?
Understanding the rise of e-commerce in Cambodia
But first, let's take a moment to grasp the remarkable surge in Cambodia’s e-commerce industry.
There is no doubt that e-commerce has emerged as a powerhouse, transforming the way we shop and conduct business—and the numbers speak for themselves.
For example, according to Statista, the value within the Cambodian digital commerce sector is projected to reach an impressive US$2.14 billion in 2024. This growth is expected to continue, ultimately reaching a projected total of US$3.03 billion by 2028.
Clearly being a nation that's no stranger to the e-commerce boom, up to KHR៛211.2 billion in e-commerce tax revenue was collected by the General Department of Taxation (GDT) in the first eight months of 2023, according to The Phnom Penh Post. This tax revenue surge further reflects online businesses' rapid growth in Cambodia and can be attributed to advances in technology, which have made it easier to search for goods online.
However, with this growth, there inevitably will be challenges that e-commerce businesses in Cambodia must navigate.
Overcoming e-commerce hurdles: navigating the road to success
In the ever-evolving landscape of e-commerce, challenges and opportunities often go hand in hand. Some of the sets of hurdles that new e-commerce ventures must adeptly navigate to thrive in this competitive arena include:
1. Meeting customer expectations
Today's e-commerce consumers demand quicker processing, reduced waiting times, and prompt deliveries. These expectations extend beyond the e-commerce platform's control, affecting logistics and delivery service providers.
2. Ensuring multi-channel consistency
Today's consumers engage with brands through a multitude of channels, from social platforms and marketplaces to company websites. Because of this, effort must be put into the consistency of branding and customer experience to build trust and loyalty. Simply put, e-commerce businesses must ensure seamless experiences across all channels.
3. Data security
As e-commerce grows, so do concerns about cyber fraud. Therefore, e-commerce businesses must proactively secure their data and customer information by investing in advanced security solutions, staying vigilant against emerging threats, and educating employees on risk mitigation practices.
4. Managing complex cross-border trades
Expanding e-commerce businesses tend to bump heads with the complexities of cross-border trade. And when this does happen, conquering these new markets means deciphering international trade regulations, navigating customs clearance procedures, and understanding diverse duty and tax laws. Oftentimes, successfully managing these complexities requires not only a comprehensive understanding of international trade but also cooperation with reliable logistics partners.
So, how can you run a successful e-commerce business, given all these challenges?
With reliable and efficient logistics solutions at your side, many of these obstacles become manageable, paving the way for growth and success in this ever-evolving landscape.