Cross-border online shopping opportunities are continuing to grow globally, and cross-border e-commerce market is estimated to reach $1 trillion in 2020. Global consumers who shop abroad are normally buying because of the following three reasons:
• Cheaper prices
• Ability to obtain brands that aren’t available in their home country
• Unique or specialty products that aren’t found in their home country
Such increasing development of online purchasing behaviour is leading to an increase in the ability of many foreign e-marketplaces to attract consumers. As markets grow accustomed to the technology and customers look beyond local offerings, it’s important that retailers are primed and ready to take advantage.
According to a recent report by PayPal and research firm Ipsos, cross-border online shoppers spend twice as much as consumers who shop online domestically. The study examined data from 175 000 consumers in 22 countries, analysing their cross-border shopping habits.
The Middle East and Africa have the highest percentage of cross-border online purchases. 50% of goods bought online are imported from other regions. United Arab Emirates is the key region for imports, with 58% of all online purchases being imported. 80% of these cross-border imports come from Asia, North America, and Western Europe.
China, Mexico and Russia are highlighted as countries with substantial room for cross-border growth. 54% of Russian online shoppers intend to increase or begin cross-border shopping in the next year.
Eastern Europe and Russia source 43% of their online purchases from other countries, with Asia supplying 15% of these imports. Western Europe supply the region with 13% of cross-border online purchases with North America supplying a further 8%.
International retailers need to continually foster their cross-border strategies to ensure they are taking advantage of the right emerging markets. Cross-border e-commerce is on the rise, and companies seeking to benefit from its potential should be ready to respond to regional preferences from the very beginning. After all, one thing is clear: online shoppers expect flawless service and customer experience, regardless of their geographical location.
In order to build a successful cross-border strategy, businesses should focus on making a deep analysis of their target markets in order to offer the right product mix at a fair price. When going global, it is vital to appear as local as possible in order to truly connect with a local audience. In fact, not localizing your communications can have a severe impact on your sales, as a report by Statista shows that 13% of consumers will abandon their shopping carts if the price is displayed in a foreign currency.
At Konvertigo, we help companies seeking to unlock the potential of cross-border sales. If your business has already reached the peak of development in your domestic market and you are thinking about expanding geography and entering new markets, Konvertigo may become your reliable partner in promoting your business abroad. Establishing a brand in the international arena today is much easier than it was ten years ago. In the era of high-speed Internet, mobile communication and the availability of international delivery services, the first step is to design and develop a user-friendly website and set up promotion in search engines and social media that are local to the target audience. A well-developed brand will determine the positive perception of products by foreign consumers. Here are a few core services that Konvertigo can help you with:
• Company visibility through localized online shop and social media.
• Paid visibility through search engine marketing, paid forums, social media advertising, vloggers, articles, etc.
• Earned visibility through content and conversations about company products in popular forums, as well as product reviews and recommendations in different media channels.
If you are ready to take the next step, we would love to hear from you!