Monday 3 November 2014
Close to 40 percent of consumers have made at least one cross-border online purchase, indicating that e-shopping from other countries is clearly gaining traction globally. The most popular destinations are the US, the UK and Germany, reveal findings from the 2014 Pitney Bowes Global Online Shopping Study launched on Wednesday. As a result, retailers based in these countries are in a great position to tap into this trend to expand their reach to global buyers, suggests the report.
Australians most frequent cross-border buyers
Australians are the most likely to buy products online from retailers outside their own country (63 percent) followed by Canada and Russia (both 54 percent). Surprisingly, shoppers in South Korea (21 percent), China (19 percent), and India and Japan (both 15 percent) ranked highest in believing they can only purchase goods online from retailers in their own country.
Retailers should seize international opportunities
While nearly all respondents (96 percent) have made an online purchase, the relatively low cross-border purchases highlight an opportunity for international retailers. Both the relative popularity of foreign goods as the widespread hesitation to buy abroad should motivate retailers to offer their products beyond their border to facilitate cross-border e-commerce.
Barriers to international e-shopping
According to the study, the biggest barrier to cross-border commerce is high shipping costs (68 percent). This is followed by additional fees at time of delivery, such as duties and taxes (58 percent). Product delivery taking too long was the third largest barrier to completing an online purchase (42 percent). Another major concern is perceived safety, including data security and fraud. Only 46 percent of respondents said that they thought it was safe to buy a product online from a retailer based outside of their own country.