PayPal releases report encouraging cross-country sales for merchant and economic success
The report, titled “Modern Spice Routes” (a cute twist on the historical spice trade-route in the East) looks at what is happening in in e-commerce between nations and encourages merchants to take advantage of the possibilities that exist in online consumerism where physical boarders no longer present limitations.
Some informative details have emerged from the enquiries made by Nielsen Research to help us understand what is currently happening in “cross-border-shopping” and how one might capitalize on existing trends as well as consumer preferences and opinions.
80% of consumers said that lower costs is the motivating factor for shopping on overseas cites while 79% indicated that they like these stores because they offer something new and improved than what is available at home. However, despite the excitement of shoppers seeking shopping thrills, the report indicates that people are still weary and uncertain when it comes to the risks of fraud and identity theft and want their identities to be protected. The report also names PayPal, the most commonly used payment method for cross boarder purchases.
In terms of greatest spice sales, the report presents the top six countries for cross-border- shopping sales (for the past 12 months) in ranking order: USA, UK, China, Hong Kong, Canada and Australia.
And another interesting titbit for merchants (something to think about in your marketing strategy) is the report’s categorization of different kinds of cross-border shoppers. It identifies 5 specific types:
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Fearless Adventurers: They love the unique and exotic and are happy to pay for it. They enjoy mobile shopping and make 30% of their purchases on foreign websites.
Efficient Explorers: Easy and time efficient is vital for them. They like online merchants who they trust and will return to the same cites, specifically for travel and entertainment.
Value Voyagers: They are bargain hunters who search for comparative and competitive pricing on online websites, using pricing tools.
Safety Seekers: They will cross-border shop for the things that they love and cannot find locally but are careful with where they make their purchases.
Deal Hunters: They are not big online shoppers but if the price is right on an overseas website, they will be there.
PayPal’s address online merchants through its President, David Marcus: “The emergence of these ‘modern spice routes’ is great news for businesses the world over. Our message to merchants is if you are looking for new ways to grow your sales, especially in an economic downturn, start selling directly to 94 million cross-border shoppers in these 6 markets and own a piece of this $105 billion market. For consumers, paying for items in a different currency or country has never been easier and we help make it safer with our buyer protection policy* available in 193 markets worldwide.”