Paypal Holdings Inc (NASDAQ:PYPL) recently conducted a survey that showed cross-border sales are on the rise. Beyond this, the new Cross-Border Consumer Research report showed the U.S. as the most preferred online shopping destination. This spells great news for online merchants who offer sales to foreign states as more opportunities will be heading their way.
A number of interesting insights were gathered from the survey. It involved over 23,200 online buyers from 29 nations. Paypal’s consumer research inquired about online consumer habits in order to understand how and why people shop on the internet. Paypal Holdings Inc (NASDAQ:PYPL) was also interested in how global consumers paid for online transactions.
Insights from PayPal.
The country with the greatest prevalence of online cross-border shoppers is Ireland. Over the past 12 months, self-stated international shopping sits at 79 percent with Austria hot on its heals at 78 percent. Israel, too, had a high of 71 percent.
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Many of the online buys were made via PC, though mobile devices appear to be more popular in emerging economies. The most common globally purchased item is clothing. This came in at 49 percent. The next most desirable item online is consumer electronics at 32 percent. These are followed by entertainment and education, which make up 31 percent, as well as travel.
67 percent of online consumers prefer popular global stores when making foreign purchases.
The survey also showed that consumers are more driven by price and shipping costs. Around 73 percent of those surveyed noted that better pricing is mostly why they bought from other countries. Another 50 percent said that free shipping was a major motivator too. In fact, most of that 50 percent said that high shipping cost usually prevent them from making a purchase.
So what can online traders take away from Paypal’s survey? To start off with, mobile devices are on the rise with many people using them to conduct their online purchases. Bearing this, it would be wise to invest in allocating mobile-friendly facilities to your online store. Checking out items can often be tricky and time consuming when sites don’t cater for mobile buyers.
Mobile money transactions are a key driver of online shopping across the world. Around 47 percent of online shoppers made their buys via their smartphones last year. This also hints towards the increased benefits that can be gained from mobile shopping apps which make the task simpler, faster and safer.
Paypal’s survey lets online merchants consider their costs. Cross-border buyers are highly concerned with exchange rates and shipping. Merchants who are aware of foreign currencies, offering sales and discounts when rates become highly unfavorable for their buyers, tend to gather more shoppers. Lowered and free shipping can also boost cross-border trade.
Beyond this, Search Engine Optimization, or SEO, is key in allowing buyers to find and return to online stores. This is the process of allowing your store to be easily found and sited on the Web. Fifty-eight percent of those surveyed by Paypal said they normal return to an online store they have used before. 36 percent visit sites recommended by friends and family while 40 percent tend to go to sites they can remember.
Selling beyond country borders can often be hasslesome, but Paypal’s (NASDAQ:PYPL) research shows that the market is growing and can accommodate for most. The benefits from global online trading are high and rising.