Currently there are six major markets that exceed $105 billion in revenue earned from cross-border sales: The United States, The United Kingdom, Germany, China, Australia, and Brazil. Over the course of the next five years each of these markets is anticipated to make over $307 billion.
The data released by PayPal references three main reasons why more online shoppers are turning to international e-commerce sites to make their purchases:
1) To Save Money
2) To Have More Variety
3) To Purchase Goods Not Available Locally
In a statement to merchants, PayPal president, Dave Marcus says “[â¦] 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 six markets and own a piece of this $105 billion market.”
What exactly are most cross-border shoppers purchasing? The majority of international purchases are for clothing, shoes, or accessories, with just under $5 billion more purchases made in this category than any other. In order of revenue that they earn, the other popular genres of items purchased overseas were health/beauty products, personal electronics, computer hardware, and jewelry/gems/watches.
In order to reach this market of global shoppers it's important for merchants to build up their reputation. Developing a sense of trust with your consumers is important, as 69 percent of online shoppers who make purchases internationally have expressed that their biggest fear with the process is either theft or fraud.
Do you think that expanding to the global market is the only way e-commerce sites can continue to grow?
<Image: NASA Goddard Photo & Video – Flickr>
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