Melissa O’Malley, Director, Global Merchant & Cross Border Trade Initiatives, PayPal
PayPal and Ipsos examined the online and cross-border shopping habits of 17,600 consumers in 22 countries to uncover opportunities and best practices for merchants who want to grow their international business this December and beyond.
There are some key insights that highlight why people are shopping internationally (and why they aren’t) and what incentives merchants should put in place to gain more traction with shoppers. For example, did you know that people who shop internationally spend nearly twice as much as those who only shop domestically? If you are a merchant looking to attract customers, international shoppers make it worth your while.
Another surprising insight from the study: Austrians are leading the charge globally in cross-border shopping. 83 percent of online Austrian consumers shop internationally, followed by Israel (82 percent) and Australia (75 percent). That means merchants shouldn’t just look at the size of a country, but the willingness of the shoppers there to go online and purchase. (By contrast, international shopping is relatively rare in China, where only 26 percent of online shoppers reported making international purchases.)
Around the globe, clothing and footwear are the most sought-after goods for cross-border shoppers, representing 39 percent of their purchases. Consumer electronics is the second most popular category, at 26 percent of all online cross-border purchases.
We also discovered that the most important driver of cross-border shopping isn’t the cost of the item or how unique it is, it is the shipping cost. More than half (51 percent) of those who have shopped cross-border in the past 12 months say that delivery costs prevent them from making purchases from another country more often. Similarly, 47 percent of all online shoppers say that free shipping would make them more likely to buy from another country and 51 percent of all adult internet users say that free shipping or postage for returns is a “must have.” PayPal is already helping merchants meet this demand with free shipping pilots and free return shipping programs in 20 markets such as France, Italy and Spain.
Harnessing the Power of Global Trade
Cross-border trade can be a vital source of incremental revenue for merchants. At PayPal, we want to help our merchants access new international sales opportunities, and this research provides them with the top cross-border shopping markets and their consumer buying habits.
Merchants like Nick Martin of The Pro’s Closet, based in the US and now the largest used cycling store on eBay, are harnessing the power of global trade. Forty percent of The Pro’s Closet’s sales are to overseas customers in markets like Australia, Canada, the UK and Russia. Jamie and Abigail Forsythe, the Australian brother-sister team behind KeepCup, an earth-friendly coffee cup manufacturer, are now selling to 32 countries around the world.
For Nick, Jamie and Abigail, being armed with the latest data and tools to help tap into the expanding global marketplace is imperative to maintaining and growing their bottom line.
Are you ready to grow globally and increase your revenues? Read the full report and visit PayPal PassPort today to learn more about selling internationally.
Everything you need to successfully sell cross-border is just a click away!
