Nine out of ten cross-border e-commerce shoppers surveyed cited payment protection as one of the greatest issues affecting their purchases from foreign sites—especially in the case of China and Brazil.
The Nielsen Co. conducted the survey of more than 6,000 cross-border online buyers in the United States, Germany, United Kingdom, Australia, China, and Brazil from May 27 to June 12, 2013.
The survey forecasts that 93.7 million buyers in the countries researched will buy $105 billion worth of goods from e-commerce sites in other countries this year. And that number is expected to grow to 130 million buyers by 2018 as they cross digital borders to buy $307 billion worth of merchandise. With nearly 300 percent growth in transaction value, but only a 38 percent increase in the number of buyers, it points to the fact that buyers are becoming more comfortable in procuring a higher percentage of their goods online.
U.S. e-commerce sites were the most popular destination, cited by 45 percent of the online buyers surveyed. That was followed by the U.K. at 37 percent, China 26 percent, Hong Kong 25 percent, Canada 18 percent, Australia 16 percent, and Germany 14 percent. The most-cited reasons for buying from a foreign e-commerce site—by 80 percent of the respondents—was to save money and to find goods or services that are not easily available in the home country. Research shows that these same reasons drive a vast amount of B2B e-commerce as well.
While all benchmarks show that cross-border e-commerce is on the rise across all major markets, research from the Institute for Prospective Technological Studies confirms that access to secure payment and governance conditions continue to be the principal issues that concern prospective B2B e-commerce users.
The key to success for B2B companies looking to differentiate their businesses online is to offer secure and protected transactions and payments—in real-time, 24/7—that also includes the rich data that is so critical for B2B, especially in the case of cross-border purchases. It is these companies who will become the winners in this new era. Read how Traxpay can help you stake your claim in the $7 trillion B2B e-commerce land grab.