Pitney Bowes survey finds majority of global consumers shop cross-border

The third annual Pitney Bowes Global Online Shopping Survey has revealed that cross-border ecommerce has become prevalent among consumers around the world. Consumers frequently make domestic online purchases (94%), however more than two-thirds (66%) of consumers that have ever made a domestic online purchase have also made an online purchase from another country in the past year.

The survey found that Singapore (89%), Australia (86%) and Hong Kong (85%) have the highest number of cross-border shoppers, while countries like Japan (34%) and the U.S. (45%) are still growing in cross-border confidence.

“Online shopping has become a way of life for many shoppers,” according to Pitney Bowes. “Nearly one-third of these consumers now say they make domestic online purchases on a daily or weekly basis, with over two-thirds in China reporting this regularity. As domestic online shopping becomes more frequent, it can create familiarity and comfort to reach across borders. Not surprisingly, cross-border shopping occurs less frequently than domestic shopping with the majority of consumers (58%) shopping monthly or annually. Top countries for monthly/annual cross-border shopping include Australia (78%), Singapore (77%) Canada (72%), Mexico (71%) and Hong Kong (70%).”

A key driver for cross-border shopping is the symbiotic relationship between physical stores and online shopping. The survey indicated that 63% of consumers that have shopped cross-border are now participating in what Pitney Bowes calls “In-store Global. Online Local.”

Pitney Bowe said this phenomenon occurs when consumers make in-store purchases during their international travels, and follow up with online purchases from that same cross-border retailer. Most cross-border shoppers in South Korea, China and India cited that they often or always revisit a retailer online following international travels.

Around half of consumers say that all or most of their online shopping, whether domestic or cross-border, is through an online marketplace, and the survey also found that mobile devices are playing an increasingly greater role.

Post&Parcel readers should note, however, that the survey found that online shipping and returns “continue to be a major pain point for consumers”, despite merchants’ efforts to improve their shipping and returns processes.

“When asked about holiday shopping, 42% of consumers say they experienced related challenges when shopping online for the 2015 holiday season,” said Pitney Bowes.

“In fact, even the most basic elements of the customer experience such as shipping the right item; accuracy in address and tracking; a transparent returns policy; and proper duty and tax were all cited as challenges. Hong Kong (65%), India (59%), South Korea (55%), Singapore and China (both 54%) were among the countries experiencing the greatest headaches with online shopping during the 2015 holiday season.

“Even in the US, almost a third of consumers (31%) reported experiencing challenges during last year’s holiday shopping season, putting the pressure on retailers and marketplaces to make significant improvements in the consumer experience heading into this holiday.”

The 2016 Pitney Bowes Global Online Shopping Study was conducted online by ORC International and surveyed approximately 13,000 adults across 13 countries regarding their perceptions, habits and preferences for making online purchases.