The vast majority (82%) of shoppers worldwide have made an online purchase with a brand or retailer outside of their home country, according to a new FedEx survey. These consumers reported spending approximately $300 on cross-border items per year.
In an effort to better understand global online customers, Forrester Research conducted interviews with more than 9,000 respondents from SMBs across 17 countries and territories.
The E-Commerce market currently generates more than $1 trillion in sales per year, and is expected to nearly double over the next four years, according to the report.
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The U.S., China and the UK are the top three exporters of online purchases. Up to 91% of Canadian respondents and 68% of Brazilians said they purchased from U.S. brands and retailers. Although Europeans are more apt to purchase from retailers within their area, UK businesses ship primarily to the U.S. and Australia. Japanese and Korean shoppers purchase from the U.S. more frequently than from their neighboring countries in Asia.
The survey also found that cross-border shoppers prefer multi-brand retailers and online marketplaces above all business. The majority of respondents in every country ranked major multi-brand online retailers or marketplaces as their first choice out of five business types for cross-border purchases. Since independent SMB retailers ranked fourth, the findings indicate that the most effective method for SMB retailers to enter the global marketplace is by partnering with online marketplaces.
Despite cross-border e-Commerce becoming more common, duties and taxes are known to curb sales. In fact, 35% of global respondents cited high duties/taxes as a concern for cross-border shopping. If all online purchases under $200 were duty free, 56% of global respondents said they would increase their cross-border shopping.
“The results of this study on global trends suggests that streamlining regulations by harmonizing duty-free limits across the globe could result in a significant uptick in cross-border trade,” said David Cunningham, COO and President of International at FedEx Express. This benefits consumers and businesses around the world.”
