Transforming Trade: Cross-border E-commerce Trends in Taiwan

While physical retail remains popular, the cross-border e-commerce market has experienced remarkable growth, with global retail e-commerce sales more than doubling from USD 2.4 trillion in 2017 to USD 5.3 trillion in 2022.[1] Taiwan is uniquely positioned to harness this trend, leveraging its advanced manufacturing capabilities and strategic location in Asia. The island’s strengths in consumer electronics and robust digital infrastructure offer a solid foundation for substantial e-commerce export growth.

Taiwanese MSMEs stand to gain significantly from the rapid growth in e-commerce. The COVID-19 pandemic has accelerated shifts in consumer behavior, while advancements in digital technology—such as cross-border digital payment systems and AI-powered tools for exporters—have created an environment ripe for success in e-commerce export.[2] However, to fully capitalize on these opportunities, Taiwanese MSMEs must address several persistent challenges. These include gaps in market knowledge, high cross-border logistics costs, challenges in building manufacturer partnerships, and limited understanding of import regulations in destination countries. Strategic public-private partnerships offer a promising path to overcome these barriers, enabling MSMEs to drive Taiwan’s growth in this dynamic sector.

Despite the increasing focus on e-commerce in Taiwan, significant knowledge gaps remain, particularly regarding export opportunities. While domestic e-commerce has been widely studied, the potential for e-commerce exports has received relatively little attention. This report seeks to bridge this gap by estimating Taiwan’s e-commerce export market size in 2023 and providing a forecast for 2028. It also captures insights from Taiwanese MSMEs about their current and future e-commerce engagement. Additionally, the report analyzes Taiwan’s policy landscape, offering actionable policy recommendations and referencing successful international examples to help expand the island’s e-commerce industry.

By addressing these gaps and leveraging its strengths, Taiwan has the opportunity to solidify its position as a leader in the global e-commerce market.