New global online shopping research from Pitney Bowes reveals that cross-border ecommerce is gaining traction, with nearly 40% of consumers having purchased goods online from another country. The market opportunity for online retailers looking for a global foothold remains significant.
While nearly all respondents (96%) have made an online purchase, the relatively low cross-border purchases highlight an opportunity for international retailers that want to capitalize on an estimated $1.5 trillion market opportunity.
A successful international strategy centers on providing buyers with clarity and accuracy in the online buying process, certainty and transparency in delivery, and competitive pricing.
Here’s a deep dive into the results of the 2014 Pitney Bowes Global Online Shopping Study results.
Cross-border Purchasing
Australians were the highest for saying they have purchased products online from retailers in other countries (63%) followed by Canada and Russia (both 54%).
Consumers in the U.S. and Germany were the lowest for saying they have ever purchased products online from other countries (both 24%), followed by India (25%).
Reasons Customers Purchase
Among those who have ever made a purchase online or would consider doing so, price is the top reason for choosing to purchase a product online from a retailer outside of their own country (68%). This was followed by availability (46%) and better selection (38%).
More consumers in Australia chose price as the top reason for buying a product online from a retailer outside of their country (80%), followed by Russia (76%) and Brazil (75%).
Quality was highest for consumers in India (63%,) followed by China (56%). Brand names was highest with consumers in India (52%), followed by China (34%), and South Korea and Russia (both 27%).
Where Customers Buy From
Among those who have ever made an online purchase or would consider doing so, the U.S. is by far the top country to be considered for purchasing products online by those not living there (70%), except for those in Russia (35%).
The U.K. (45%) and Germany (38%) are the next most popular e-destinations where consumers would purchase goods online outside their own country, followed by Japan (32%).
The U.K. is a top consideration by those in Australia (75%), Germany (74%) and France (73%).
Germany is more of an option among those in France (76%) and Russia (68%).
Those in Brazil are more likely than any others to consider China (55%) and Japan (51%).
The Most Important for Purchasing Products Outside of Own Country
Price of products was the most important reason respondents would buy products online outside their own country (78%). This was highest with Brazilians (89%), Australians (85%), and Canadians and Russians (both 82%).
Shipping costs/duties/taxes follow as the second most popular reason among all except those in France, Russia, China, and India. In those countries, “selection of products” is the next popular reason.
The ease and speed of the online checkout process was more important to online shoppers in Japan (56%), China (49%) and Russia (43%).
Having a clear and easy-to-understand return policy was more important to respondents in India (41%).
Accurate estimates on delivery dates were more important to consumers in India (35%), followed by the U.K. (31%) and South Korea (28%).
Deterrents to Online Purchases
Among those who have ever made a purchase online or would consider doing so, the number one deterrent for completing a purchase online is high shipping costs (68%). This was more prevalent with consumers in Canada (83%), Australia (80%) and the U.K. and France (both 76%).
Additional fees at the time of delivery, including duties and taxes, were another major barrier (58%). This was highest with online shoppers in Canada (72%), followed by Germany (68%) and France (67%).
Product delivery taking too long was the third largest barrier to completing an online purchase (42%). This was the biggest deterrent to consumers in Brazil (58%), followed by the U.K., South Korea and Russia (all 46%).
Online return policies and processes were a deterrent to more consumers in Germany (50%), India (48%) and the U.S. (45%).
Types of Products Cross-border Shoppers Would Buy
Those who have ever made an online purchase or would consider doing so were asked what types of products they are most likely to buy online from a retailer located outside of their country.
Those in Russia (59%) and South Korea (58%) are more likely to purchase apparel online from another country, followed by Brazil (48%).
Consumers in Brazil are the most likely to purchase consumer electronics from another country (67%), followed by consumers in India (56%). Those in Japan are by far the least likely to purchase consumer electronics from another country (10%).
Australians are more likely than any others to purchase books, videos and music (53%).
Those in Russia are by far the most likely to purchase household goods (60%).
Consumers in South Korea are most likely to purchase footwear online, including athletic shoes (50%), followed by China (38%), and Brazil and Russia (both 36%).
Computer hardware and software was highest with consumers in India and Russia (46%).
Consumers in India (41%), Brazil (39%) and China (37%) are more likely to purchase jewelry, watches and accessories.
Auto parts were more popular with online shoppers in Russia (23%), India (15%) and Canada (13%).
Collectible items were highest with consumers in India (28%), followed by the U.S., Australia and the U.K. (25%).
Safety of Online Purchases
When asked if it is safe (i.e., data security, fraud) to purchase a product online from a retailer based in another country, only 46% who have ever made a purchase online or would consider doing so indicated that it is safe. Twenty-one% of these respondents said no while 33% said they don’t know.
Over 60% of online shoppers in Australia, Canada, Brazil, and India indicated that it is safe.
Over half of those in the U.K. believe it is safe, while 47% in South Korea, and 45% in Russia believe it is safe.
Those in Japan are by far the least likely to believe that these purchases are safe (17%), followed by Germany (31%), France (35%) and the U.S. (36%). Also, consumers in Japan were the highest for saying they don’t know if it’s safe to purchase a product online based in another country (52%).
Methodology
The Pitney Bowes Global Buyers Perceptions Survey of 12,000 respondents was conducted online by ORC International and polled approximately 1,000 respondents across 12 countries to gain a better understanding of consumers’ perceptions about shopping online. The survey was conducted in August 2014.