Results from a new study commissioned by logistics giant FedEx show how online shopping has become truly global, with online buying behavior currently representing more than US$1 trillion in sales per year and forecasted to nearly double in the next four years, according to Forrester Research, which undertook the research.
The study, “Seizing the Cross-Border Opportunity,” surveyed more than 9,000 respondents in 17 countries and territories, as well as conducted interviews with small and medium businesses with cross-border operations.
“These findings reveal the opportunity that exists for small and mid-size businesses to enter the global commerce play by means of online and mobile platforms, and highlight how they can take full advantage of regional differences to expand their business beyond their borders,” said D.J. Miller, vice president of Marketing, Customer Service and Retail for FedEx Express, Latin America and Caribbean Division.
Important cross-border e-shopping insights from the study include the following:
- Primary online shopping destinations are the U.S., China, and the U.K. While shoppers indicated buying cross-border from all 17 international markets included in the study, the U.S., China and the U.K. were the top three exporters of online purchases.
- Cross-border shoppers prefer to purchase from well-known major multi-brand retailers and global online marketplaces. In fact, the majority of respondents in every country surveyed ranked major multi-brand online retailers or marketplaces as their first choice out of five business types for cross-border purchases. The findings indicate that an effective way for small and medium-size retailers to enter the global arena is through online marketplaces.
- Duties and taxes curb cross-border activity. While shipping cost and delivery time are top of mind with shoppers, 35 percent of global respondents cited high duties or taxes as a concern for cross-border shopping with the most significant numbers coming from Canada–62 percent of Canadians believe duties and taxes are an issue–higher than any other country. Germany and Brazil tied for the second highest level of concern at 48 percent.
“The results of this study on global trends suggest that simplifying regulations just by harmonizing duty free limits across the globe could result in significantly more cross-border trade, benefitting consumers and businesses around the world,” said David Cunningham, chief operating officer and president, International, FedEx Express.
In a world of globalized shopping, cross-border online trade seems destined to expand exponentially, benefitting small and mid-size businesses and consumers with exciting and expanding opportunities, said the report.
Forrester Consulting conducted an online survey in September 2014 of 9,006 global online consumers and interviewed 34 small and medium size businesses with international e-commerce operations in Australia, Brazil, Canada, China, Colombia, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Puerto Rico, Singapore, South Korea, the UK, and the U.S. to evaluate the current attitudes toward and experiences with cross-border shopping and order fulfillment.
Photo courtesy of FedEx
