HOW MUCH ARE ONLINE CONSUMERS SPENDINGCROSS-BORDER?

Globalaverage

US$300.10

NorthAmerica

US$368.21

APAC

US$347.87

EMEA

US$269.34

LatinAmerica

US$232.85

THE GROWTH OF CROSS-BORDER SHOPPING

Asian consumers are generally more likely to shop cross-border regularly than the average, with 23% of Chinese and 22% of Hong Kong making purchases a few times a month compared to a global average of just 13% reporting the same frequency.

82% of respondents now say they’ve made an online purchase from a merchant outside their home country.

LOOKING FOR NEW CUSTOMERS?SEARCH IS STILL KING

CONSUMERS STILL HAVE CONCERNSABOUT E-COMMERCE

CONCLUSION

Search remains the most popular way to discover new merchants, used by more than half (58%) of respondents. In APAC, word of mouth is also prevalent, with 39% of the shoppers hearing about international merchants this way.

Consumers are changing, and they are changing fast. In fact, they are changing faster than many businesses, a trend that is quickly manifesting itself as an intense battle for a bite of the e-commerce pie. But the good news is that there is an enormous opportunity for those businesses willing to invest resources into building a solid reputation and a robust logistical operation. These two key pillars will then allow enterprises to start competing on price and quality, ultimately winning both business and consumer loyalty.

APAC consumers worry about high shipping costs and fake or inferior products when making an online purchase from another country. Australians and South Koreans were also especially worried about long delivery times, while consumers in Singapore raised concerns about damaged products.

Source: Seizing The Cross-Border Opportunity, a commissioned study conducted on behalf of FedEx, December 2014. Forrester conducted an online survey in September 2014 of 9,006 global online consumers and interviewed 34 small and medium size businesses with international e-commerce operations in Australia, Brazil, Canada, China, Colombia, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Puerto Rico, Singapore, South Korea, the UK, and the US to evaluate the current attitudes toward and experiences with cross-border shopping and order ful�lment, including the challenges and concerns faced by both groups in expanding these practices. Consumer survey participants included those aged 18 or older who have ordered a physical item shipped to themselves or another recipient over the internet with the past 12 months. Small and medium-size business interviewees were asked about the factors leading to their decisions to start an international e-commerce business, their experiences and challenges with ful�lling such orders, and the factors that may enable them to expand this practice. The study took place between July and September 2014.

HOW CONSUMER ADOPTION OFCROSS-BORDER E-COMMERCE EXPLODEDTechnology has reshaped every aspect of our world over the last two decades. In the space of a generation, the entire shopping experience has been overhauled. Consumers around the globe are shopping cross-border, seeking hard-to-�nd items and looking for deals, presenting an enormous prospect for those businesses willing to seize the opportunity.

GLOBAL IS THE NEW LOCAL:

CHINA225% increase

from 2014 to 20182014: US$440bn2018: US$990bn

AUSTRALIA140% increase

from 2014 to 20182014: US$25bn2018: US$35bn

JAPAN148% increase

from 2014 to 20182014: US$63bn2018: US$93bn

HOW POPULAR IS E-COMMERCE?

Online retail sales are increasing in every key APAC

market.

This rapid growth in digital channels and adoption of e-commerce across APAC is ushering in a new global shopping reality:cross-border purchasing.

Forrester estimates the combined 2014 online retail sales of 11 key markets including the US, UK, China, India, Japan, and Australia at just over US$1 trillion. This �gure is projected to rise to US$1.84 trillion by 2018.

OF GLOBALSHOPPERS67% conduct at least 10% of their

monthly spending online.

Online purchasing habits differ markedly by region.For example, North Americans shop for video games more than others, while those in APAC are more likely to purchase food.

Physical items are more popular than digital purchases, with 57% of respondents reporting that more than half of their online purchases are of physical items shipped to them, as opposed to digital purchases such as music �les and airline tickets.

APAC

52%High shipping cost

45%Long delivery time

43%Damaged products

46%Fake and/or inferior products

39%Inability to return an item without added cost or hassle

59%Search Engine

38%Online Advertisement

39%Word of Mouth

31%Social Media

23%Email Promotion

How do APAC respondents discover new merchants? What concerns do APAC respondents have about e-commerce?