A recent study conducted by Airwallex and Edgar, Dunn & Company sheds light on the changing dynamics of cross-border e-commerce.
The report underscores that 54% of global consumers intend to boost their cross-border shopping activities, underscoring the importance of adaptable and transparent digital payment processes. Additionally, the report highlights the rising trend of social commerce, with 59% of consumers showing a willingness to make online purchases from international sellers via social media platforms.
Kai Wu, Chief Revenue Officer at Airwallex, stresses the importance of addressing consumer concerns to thrive in the competitive market. With the global cross-border e-commerce market projected to reach USD 7.9 trillion by 2030, Wu emphasizes the significance of delivering exceptional customer experiences.
The report provides insights into consumer sentiments and preferences across various regions, including Australia, China, Hong Kong, Singapore, the UK, and the US. Key findings include:
- Trust in personal data security and international merchants drives increased cross-border spending, with 61% of consumers perceiving international merchants as trustworthy.
- Digital payment methods play a crucial role in enabling seamless cross-border transactions, with 77% of consumers likely to abandon their cart if their preferred payment method is unavailable.
- Credit cards (39%) and global digital wallets (26%) are the most frequently used payment methods for online shopping from international merchants.
- Enhanced online shopping experiences, price competitiveness, and broader product selection drive cross-border shopping.
Trust in personal data security and international merchants helping drive increased cross-border spend. Digital payments are enabling a more customised, seamless cross-border payment experience for consumers
The rise of digital payment methods is a key reason consumers now feel more comfortable buying goods and services from anywhere in the world, emphasising the importance of flexibility and transparency in the payments and shipping process.
Cross-border shopping driven by enhanced online shopping experience, price competitiveness and broader product selection
Understanding the diverse considerations and preferences of consumers across regions is key for businesses seeking success in the global marketplace.
Social commerce continues to grow in popularity globally
Social commerce recognises that social media is inherently social, and merchants are quickly leveraging these platforms to create interactive and creative content, engaging with and increasing purchases among a consumer group that primarily consists of digital-native consumers.
The full report, along with recommendations on how merchants can optimise for global success, can be read here.
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