Melissa O’Malley, Director, Global Merchant and Cross Border Trade Initiatives, PayPal
To most of us, Austria is well regarded for its 
It’s true: according to PayPal’s recent global research that examined the online and cross-border shopping habits of 17,600 consumers in 22 countries, Austria has the highest density of consumers shopping internationally. In fact, 83 percent of online Austrian consumers shop cross-border, followed by Israel (82 percent) and Australia (75 percent). What’s more, Austrians are poised to increase their international purchases in 2015.
Why should this matter to SMBs around the world? Cross-border trade can be a vital source of incremental revenue for them – and by expanding into the global marketplace, these businesses can reach new customers, tap into new holidays beyond their own seasonal sales cycles, and ultimately grow their bottom line. When choosing where to market their goods, business owners shouldn’t just look at the size of a country, but the willingness of its shoppers to go online and purchase goods internationally.
Ready to sell to eager cross-border shoppers in Austria? To find lasting success, merchants would do well to follow these top tips:
1. Appetite for Apparel
Companies selling clothing, handbags, shoes and other apparel items have the biggest opportunity to increase their sales in Austria, as those are their most frequent cross-border purchases. According to a recent report from Euromonitor, Austria’s annual spending per capita on clothing reached €959 in 2013; footwear €207. Leisurewear – sneakers, rain jackets, fleeces, and jogging trousers, as well as outdoor brands – are quite popular with Austrian shoppers, even among urban dwellers who don’t take part in much sporting activity.
As awareness of sustainability issues has increased in Austria, so have its shoppers’ appetites for “green” fashion. Low-impact items that are produced without chemicals, animal products and using organic materials, are increasingly sought after.
Other popular cross-border purchase items in Austria include entertainment goods, educational products and toys from other countries.
2. Pay Attention to Buying Behavior
To successfully market to Austrian cross-border consumers, certain shopping behaviors and purchasing motivators should be considered:
Contain shipping costs: Austrian consumers are largely driven by shipping costs. More than half (59%) of those who shop cross-border, and 59% of those who do not, cite delivery shipping costs as something that prevents them from purchasing from international websites. Similarly, 52% of Austrian online shoppers say that free shipping would make them more likely to purchase from an international site.
Optimize for mobile: Austrian mobile commerce spend is booming: in 2013, total spend reached just over US $1 billion; between 2013 and 2016, that number is predicted to grow by 205 percent. Mobile apps are becoming the preferred way Austrians shop online. Among Austrian consumers who have purchased via both an app and a browser, apps are preferred by 43 percent of smartphone shoppers and 40 percent of tablet shoppers. Additionally, Austrians are increasingly shopping on the go – 35 percent purchased and 36 percent searched for product info on their phone or tablet in the last year.
Value their money and time: The two top factors that drive Austrians’ cross-border purchases are savings (43 percent) and convenience (38 percent). To increase the chances of a sale, merchants should clearly merchandize clearance items and ensure simple, seamless navigation to minimize shopping cart abandonment.
3. Tap into Top Holidays
Many western merchants will find it easy to tap into Austria’s top holidays, as they are largely the same: Christmas, Easter and Halloween are some of Austria’s top gift-giving occasions.
Christmas is Austria’s most celebrated tradition – and by far its largest gift-giving event. As with many other countries that celebrate the holiday, Austrians’ biggest online shopping day is during the Christmas season: in 2014, according to Adobe Digital Index, holiday ecommerce sales were expected to peak at $91 million on December 8th. In fact, Austria rivals the US and Brazil for the largest share of annual online sales during the holiday period.
Easter is another popular holiday in Austria, with three-quarters of children receiving small gifts. Halloween is also gaining popularity in Austria, with spending increasing on sweets, costumes and pumpkins.
Ready, Set, SELL!
It’s clear that Austria presents a huge opportunity for SMBs searching for new ways to increase their online global sales. Armed with this these key insights into Austrians’ shopping behaviors, purchasing trends and key sales dates, merchants can feel empowered to sell to them with confidence.
What’s holding you back from finding at least one new customer in Austria today?