Overcome obstacles in cross-border e-commerce
More consumers than ever are jumping online to buy direct from merchants overseas. Unfortunately, most eTailers are not equipped to capitalize on this opportunity. Only 43% of merchants use IP recognition technology to personalize their customers’ online shopping experience. This technology can match the language and currencies displayed at checkout to the customer’s geographic location, although this can stimulate conversation.
This is just one of the main conclusions we discovered in The optimization index for cross-border traders, a PYMNTS and Digital river collaboration.
We looked at the online payment processes of 137 leading ecommerce sites in six countries to determine which features are critical to meeting the expectations of cross-border shoppers and which merchants offer the type of commerce experience these shoppers get. wait.
Merchants were assigned a Cross Border Merchant Optimization Index score on a scale of 0 to 100, with 0 representing such a friction-laden shopping experience that all customers abandon their cart and 100 representing a shopping experience. purchase so smooth that all customers complete their purchases.
Other key findings from the study include:
- Cross-border e-commerce transactions are 11% more difficult for consumers than with domestic transactions. E-commerce merchants tend to offer different purchasing functionality for cross-border transactions compared to domestic transactions. Nine percent fewer merchants offer guarantee or refund policies for cross-border transactions than for domestic transactions, for example, and 30% fewer offer loyalty and rewards features in the cross-border context than in the domestic context.
- Online merchants charge an average of 17% more for cross-border purchases than domestic purchases. Cross-border shopping can be costly, with taxes, duties, and shipping charges all playing a role in increasing costs. Online merchants charge more for shipping on cross-border purchases than for domestic purchases, for example, while also charging more taxes and duties.
- U.S. merchants overall offer the best, but most expensive, cross-border shopping experience of any country. Our research shows that ecommerce merchants located in the United States offer the best overall e-commerce shopping experiences, achieving the highest overall index scores. The average cross-border purchase made on US merchant sites costs 43% more than domestic transactions made on the same sites.
Providing the correct currency and other payment location factors are just one part of a much larger set of features merchants need to provide to maximize cross-border conversations. The Cross Border Merchant Optimization Index provides in-depth analysis of the full range of e-commerce offerings that are essential in getting more customers to click ‘buy’.
To learn more about how e-commerce merchants can gain more cross-border customers, To download index.