New research from PayPal reveals China is the
most popular cross-border online shopping destination for global
online shoppers
Today PayPal and Ipsos released their third annual
cross-border commerce report. The global insights research, which
investigated the online domestic and cross-border shopping habits
of more than 28,000 consumers in 32 countries, reveals new
opportunities for merchants to expand their international
sales.
Shopping internationally on mobile devices gains
traction
In Asia Pacific1, consumers claim that on average, 37 percent of
cross-border purchases are made on a mobile device, the majority of
which are on a smartphone. In fact, 68 percent of all cross-border
shoppers in the Asia Pacific region reported making a cross-border
purchase on a smartphone in the past 12 months. In China, the
survey saw a marked increase in the shift to mobile purchasing
between 2015 and 2016, with an average of 35 percent of
cross-border purchases being made on a smartphone in 2016 vs. 27
percent in 2015.
If the growth in Asia Pacific is an indication of a global shift
to increased mobile cross-border shopping, there is a tremendous
opportunity for merchants in Europe and North America. In the 2016
findings, Western European, Eastern European and Northern American
shoppers each claimed to make less than 15 percent of cross-border
purchases on a smartphone.
The future of online spending – who is most likely to shop
more, and shop the most cross-border
Sixty-four percent of internet users in China, 39 percent of
users in Russia and 26 percent of users in the UK claimed that
their online spending will increase in the next 12 months. Among
all shoppers interviewed across all countries, those predicting to
increase their online shopping say that this is primarily driven by
convenience of shopping online (selected by 76 percent), changes in
disposable income (30 percent), faster shipping (35 percent) and
cheaper shipping (27 percent).
“Selling internationally is a substantial opportunity for
merchants around the globe to grow their business. At PayPal, we’ve
seen our cross-border volume grow 38 percent in the last two years
- from $14 billion a quarter in Q3 2014 to $19 billion a quarter in
Q3 2016,” said Melissa O’Malley, Director, Global Initiatives at
PayPal. “PayPal's mobile payment volume is also up 56% over last
year, so we see the direct benefits merchants can reap by
optimizing their mobile shopping experiences.”
Where consumers are buying and why
For the first time in the survey’s three-year history, China is
the most popular cross-border online shopping destination for
global2 online shoppers (21 percent of all online shoppers
interviewed claimed to have shopped cross-border from Chinese
websites in the past 12 months), followed by the U.S. (17 percent)
and U.K. (13 percent).
Current cross-border shoppers are looking for a good deal.
Seventy-six percent of global consumers polled who shop
cross-border cited better prices as a reason for shopping in
another country instead of the country where they live. Gaining
access to items not available in their own country also ranked high
(selected by 65 percent) as a reason for having made purchases
internationally.
However, the reasons change, when it comes to the factors that
would make online shoppers more likely to buy from a website in
another country. Free shipping (selected by 46 percent of global
online shoppers) and a secure way to pay (44 percent) are the top
factors that could drive more cross-border shopping.
The distinction between these insights is important for
merchants – to retain a current cross-border shopper, better
pricing is key. To motivate a shopper who may have never shopped
cross-border before, free shipping and a secure way to pay are
paramount in converting them.
Security drives choice of payment method
In 24 of the 32 countries surveyed, PayPal is the most
frequently cited cross-border payment method used. Key factors for
choosing a preferred payment method for cross-border shopping
included security (53 percent of global cross-border shoppers with
a preferred cross-border payment method selected ‘a secure way to
pay’), convenience (44 percent) and being accepted by most
retailers (41 percent). Among Cross-border shoppers globally who
cite PayPal as their preferred cross-border payment method, 44
percent say that ‘I do not need to share my financial details with
the seller’ is a reason for their preference.
Click here to view the global results from the 2016 PayPal
cross-border consumer research.
Methodology
PayPal Insights 2016:
On Behalf of PayPal, Ipsos interviewed a representative quota
sample1 of c.800-2000 (28012 in total) adults (aged 18 or over2)
who use an internet enabled device3 in each of 32 countries (UK,
Ireland, France, Germany, Italy, Spain, Netherlands, Sweden,
Belgium, Portugal, Russia, Hungary, Poland, Czech Republic, Greece,
Israel, UAE, Egypt, South Africa, Nigeria, Brazil, Mexico,
Argentina, Peru, Chile, USA, Canada, India, China, Japan, Thailand
& Singapore). Interviews were conducted online between 30th
August and 5th October 2016.
Data was weighted in all countries to adjust for panel bias
based on external trend data on incidence of online shoppers in
each country.
1 In most countries quotas were applied on age crossed with
gender and region representative of online population. No region
quota was applied in ZA, Singapore, RU & PE. In Egypt, UAE
& Nigeria, no quotas were set but the survey was mailed out to
a nationally representative of offline sample who were screened for
internet usage2 Aged 18-74 in all European countries3Desktop
computer/Laptop/ notebook computer/Tablet /Smartphone/Some other
type of mobile phone/Electronic organizer / PDA with wireless voice
and data features/Games console with Internet connectivity (e.g.
Wii)
About PayPal
At PayPal (Nasdaq:PYPL), we put people at the center of
everything we do. Founded in 1998, we continue to be at the
forefront of the digital payments revolution. PayPal gives people
better ways to manage and move their money, offering them choice
and flexibility in how they are able to send money, pay or get
paid. We operate an open, secure and technology agnostic payments
platform that businesses use to securely transact with their
customers online, in stores and increasingly on mobile devices. In
2015, 28% of the 4.9 billion payments we processed were made on a
mobile device. With our 192 million active customer accounts,
PayPal is a truly global payments platform that is available to
people in more than 200 markets, allowing customers to get paid in
more than 100 currencies, withdraw funds to their bank accounts in
56 currencies and hold balances in their PayPal accounts in 25
currencies. For more information on PayPal, visit
https://www.paypal.com/about. For PYPL financial information, visit
https://investor.paypal-corp.com.
About Ipsos
At Ipsos we are passionately curious about people, markets,
brands and society. We deliver information and analysis that makes
our complex world easier and faster to navigate and inspires our
clients to make smarter decisions.
We believe that our work is important. Security,
Simplicity, Speed and Substance applies to everything we do.
Through specialisation, we offer our clients a unique depth of
knowledge and expertise. Learning from different experiences gives
us perspective and inspires us to boldly call things into question,
to be creative.
By nurturing a culture of collaboration and curiosity, we
attract the highest calibre of people who have the ability and
desire to influence and shape the future.
1 Regional and global averages are among all respondents
interviewed, not weighted for population size. Russia and Poland
are down weighted to equivalent sample size (all countries
represented equally)
2 Global averages from 2014, 2015, 2016 include respondents from
all countries interviewed in each year, however the countries
interviewed in each year vary
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161115005261/en/
Edelman for PayPal,
212-729-2136PayPalGlobalInitiatives@edelman.com
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