Overview of Consumer Trends
According to a new report from Airwallex, a leading global payments and financial platform, 54% of global consumers expect to ramp up their cross-border purchasing over the next six to twelve months. However, to facilitate this growth, they require greater flexibility and transparency in their digital payment experiences. The study reveals that 77% of consumers are likely to abandon their shopping carts if their preferred payment methods are not available.
Trust in International Merchants
Consumer confidence in international merchants is on the rise, with 61% of respondents viewing these businesses as trustworthy. Furthermore, 65% expressed confidence in the security of their personal and financial information when shopping internationally.
Notably, the United States (36%) and China (25%) emerged as the top regions for international shopping. Among Chinese consumers, 72% ranked the US and Canada as their preferred regions for cross-border purchases. Conversely, US consumers identified China as a key source of international products, with 41% indicating they shop there.
The Role of Digital Payments
The proliferation of digital payment methods is a critical factor in consumers’ increased comfort with international purchases. This shift underscores the need for merchants to provide flexible and transparent payment and shipping processes. If their preferred payment method is unavailable, 77% of consumers are likely to abandon their carts, while 54% are unlikely to return to online stores that do not clearly disclose additional fees such as currency conversion and international transaction charges.
Credit cards remain the most popular payment option, used by 39% of consumers, followed by global digital wallets at 26%. Shipping costs and transparency are the top considerations for evaluating the shipping policies of international merchants, with 41% prioritising these factors. Additionally, 47% of consumers identified lengthy refund processing times as a significant challenge.
Motivations Behind Cross-Border Shopping
Understanding consumers’ diverse motivations is crucial for businesses looking to succeed in the global marketplace. A significant 34% of consumers cited access to a broader range of products as the main reason for shopping internationally, closely followed by a desire for better quality and lower prices.
In markets like the UK, US, and Australia, lower prices are the primary motivator, while consumers in China, Singapore, and Hong Kong place greater importance on product availability and quality.
The Growth of Social Commerce
Social commerce continues to gain traction globally, with 59% of consumers likely to purchase from international merchants via social media. Consumers in China (86%), Hong Kong (76%), and Singapore (62%) demonstrate the highest engagement in social commerce.
Worldwide, the primary reason consumers shop from international merchants on social media is the chance to find better deals and discounts (49%), followed by recommendations from friends or family (42%) and engaging online shopping experiences (38%). Facebook leads as the preferred platform for international purchases (28%), followed by TikTok (22%) and Instagram (20%).
Conclusion
As the landscape of global e-commerce evolves, merchants must adapt to meet consumer demands for flexibility, transparency, and trust. The insights from Airwallex’s report underline the importance of these factors in shaping the future of cross-border shopping.