'Global E-Commerce gold rush' under way.(TOPICS)

SAN JOSE, Calif. -- E-commerce is going global as retailers cross borders with new country websites, international shipping, translations and currency conversions, says a new report from the Cisco Internet Business Solutions Group.

"The Global E-Commerce Gold Rush: How Retailers Can Find Riches Overseas," suggests that international e-tailing requires an understanding of markets' opportunities and uniqueness, as well as the organizational models balancing global and local capabilities.

For most chains, it says, foreign e-commerce is uncharted territory.

In mature markets, e-commerce has been the retail growth engine for more than a decade, the study says. But as this growth slows, retailers are looking to expand online into emerging markets.

Global e-commerce, including travel, will generate almost $1.4 trillion in 2015, based on a five-year compound annual growth rate of 13.5%, according to the Cisco group's economics and research practice.

While the United States, the United Kingdom and Japan will still command an estimated 53% of the market, the highest growth rates will be in such newer markets as Spain (37%), Brazil (29%), and China, Russia, and Mexico (all at 26%).

These trends will affect both "clicks and bricks" retailers and online-only merchants. Since 20% of online consumers do most of their shopping at sites that also have brick-and-mortar stores, chains that open outlets abroad without e-commerce capabilities "will not meet the multichannel expectations of their customers," the report says. "As a result, they will lose out on a significant share of potential customer spending."

While foreign e-commerce poses many challenges, "the size of the opportunity makes the leap worth the risk and effort," the study adds. Cisco estimates that a $50 billion retailer expanding into 11 countries across Europe, Asia and Latin America could add $7 billion in sales over five years and increase its total growth rate from 17% to 31%.

Retailers planning to open country-specific websites are advised by the report to consider the sales already being generated in the markets.

Many chains shun cross-border trade because of the complexity of global shipping, tariffs and currencies as well as the high risk of international credit card fraud, it says. But with the recent growth of such sophisticated third-party cross-border trade suppliers as FiftyOne, GlobalCollect and Borderlinx, "more and more retailers are taking advantage of global e-commerce growth without opening new country stores or websites," the report notes.