The majority of online shoppers across the globe use search engines to find products and prefer to purchase them from online marketplaces and websites of selected retailers while high shipping costs remain a deterrent to cross-border shopping, a survey by Pitney Bowes has shown.
The annual Global Online Shopping Study conducted for the second year in a row revealed that 62% of the respondents turn to search engines as the preferred method to look for products. In terms of preferred types of websites that international consumers like to purchase products from, 66% named online marketplaces and 62% use selected retailers’ websites.
Despite some common similarities on how international shoppers find and buy their products online, they have shopping preferences and behaviors that vary by country. Thus, the majority of consumers in Russia (78%), China and the USA (both 76%) are likely to purchase products from online marketplaces, while consumers in Australia (81%), the UK (72%) and Canada (71%) are most likely to buy products directly from a retailer’s website.
Germany showed the highest percentage (46%) of online shoppers who said they would consider purchasing products they found on search engines, followed by Japan (40%) and South Korea (33%). The largest number of consumers who would consider buying products online from social media sites was recorded in India (27%), followed by Brazil (15%) and Russia (14%).
The study also found that there are differences based on the age of the shopper. When it comes to “millennials”, more than a quarter of 18- 24 year-olds (28%) and 21% of 25- 34 year-olds visit social media sites for inspiration when searching for products. This compares to only 16% among those aged 35-44, and 12% among 45- 54 year-olds, followed by 7% among 55 year-olds and older. In country terms, online shoppers in India (38%) ranked highest for searching for products on social media sites, followed by Brazil (21%) and China (20%).
Nearly a quarter of consumers said they make the most online purchases via mobile devices including mobile/smartphones, tablets or other devices or a mix of devices. Online shoppers in the UK (37%), India (36%) and China (34%), and the USA (29%) had the highest rates for using a mobile device, or a mix of devices. Among the 18-34 year-olds, 33% use mobile devices, or a mix of devices, compared to 24% of overall consumers in the study.
In terms of most popular countries for consumers to purchase goods online outside their own country, the USA ranks at the top (71%), followed by the UK (44%) and Germany (39%). A third of global online shoppers have already purchased products online from retailers in other countries. Australians continue to be the most likely to buy products online from retailers outside their own country (63% in 2015) followed by Canada (48%) and Russia (49%).
Price is the top reason for 61% of the shoppers for purchasing or considering purchasing a product from an online retailer outside of their own country, followed by availability (40%), quality and better selection (both 30%). The number of those naming product authenticity as a reason was highest in India (36%), China and South Korea (both 30%) and Russia (22%).
Among the biggest barriers to online shopping, 64% of the respondents across the globe named high shipping costs, 48% cited additional fees at time of delivery and 39% said product delivery that was taking too long would prevent them from shopping online.
Product returns are also considered as a major concern, as 33% of global shoppers cited online return policies and processes as deterrents. Countries with the highest levels were India (46%), Germany (44%) and the USA (39%). 31% of global online shoppers said that negative customer reviews would also prevent them from a purchase.
Moreover, 30% of global online shoppers said they would be discouraged from completing a purchase with merchants who do not offer their preferred form of payment. Additional barriers include not being able to read a product description because it is in a foreign language (29%), merchants not accepting credit cards (27%) and when pricing is not in a country’s local currency (25%).
“In today’s global marketplace, e-commerce is continuing to connect the world’s economies in new ways, making it possible for brands to sell, compete and expand their footprint,” Lila Snyder, President, Global Ecommerce, said. “By focusing on the consumer – what they want and how they like to shop – brands can develop the right roadmap to achieve global e-commerce success.”
The 2015 Pitney Bowes Global Online Shopping Study was conducted online by ORC International and surveyed approximately 12,000 adults across 12 countries regarding their perceptions, habits and preferences for making online purchases. Consumers were polled in Australia, Brazil, Canada, China, France, Germany, India, Japan, South Korea, Russia, the United Kingdom, and the United States. The survey was conducted in August 2015.
