The internet and the adoption of new communication technology have made it possible for consumers to transcend time and place borders. Cross-border e-commerce, which refers to the digital purchasing on foreign sites, is risen steadily among both retailers and consumers. In the same context, PayPal in its 2018 Cross-Border Consumer Research digs into how and why shoppers in 31 markets worldwide buy on foreign e-commerce sites.
Key Findings on Cross-Border E-Commerce
- The United States and China grabbed the biggest online and cross-border commerce size, while Japan and India are the fastest growing markets.
- Ireland leads all surveyed countries in terms of the adaption of cross-border shopping with a rate of 19%, followed by Belgium and Israel at the same level (16%).
- In contrast, Japan is much more likely than any other country to shop domestically only.
- On the level regions, consumers in the Middle East are more likely to shop online on foreign sites with a rate of 14%, followed far from Eastern Europe (10%) and then Western Europe (9%).
How and Why Consumers Shop Online Across-Borders
- Desktop/laptop/notebook is the most used device to make online cross-border purchases, followed by smartphone devices.
- The Asia Pacific and the Middle East ranked the top in terms of the use of smartphone device for online cross-border purchasing (32% and 31%, respectively).
- China, the US, and then the UK are the most popular cross-border destinations for global shoppers (26%, 21%, and 14%, respectively).
- Clothing and apparel is the most popular category for cross-border purchases (68%), followed far by Consumer Electronics (53%) and Toys (53%).
- 72% of online cross-border shoppers indicated that betters prices is the top reason for shopping in other countries.
- Cheapest total cost (including shipping), free shipping, security and the availability of items cannot be founded locally are the top factors drive international sales amongst cross-border shoppers.
A Graph Shows the Proportion of Incidence of Online Cross-Border Shopping Per Region – 2018
Data were driven from 34,052 consumers aged 18 or over across 31 markets. Interviews were conducted online between 13th March and 1st May 2018.