More than half of online shoppers now buy cross-border, but 92 per cent still worry

New research suggests 52 per cent of US and UK online shoppers have purchased at least one product from an eCommerce store in another country in the last 12 months – and a further 23 per cent have considered it, with the desire for lower prices being the most popular trigger. But 92 per cent admit to concerns about shopping cross-border, with eCommerce returns problems (50 per cent) and fears over products being poor quality (47 per cent) or fake (46 per cent) among the top worries.

The survey of 2,000 consumers was commissioned by Nosto, the Commerce Experience Platform. It reveals that the majority (60 per cent) of respondents trust international eCommerce stores less than those at home. And 71 per cent are less likely to give them a second chance following a poor purchase experience compared to domestic stores.

Even when they see products they like, a number of factors will deter people from making cross-border purchases. Number one is products being priced suspiciously low (44 per cent) followed by a lack of clear information about additional cross-border fees/charges (41 per cent), returns/refund policies (41 per cent) and no clear details about delivery times to the shopper’s country (39 per cent).

How online retailers can win the trust of cross-border shoppers

“At Nosto we’re seeing increasing interest from merchants looking to sell cross-border into many markets around the world – and while this research suggests that many consumers are open to it, a lack of trust remains a significant barrier,” said Matthäus Bognar General Manager EMEA & APAC at Nosto. “If you’re a retailer trying to sell into an international market, you must provide absolute clarity about all aspects of the purchase, delivery and returns process – including detailing any additional fees and local taxes – as well as providing strong localized social proof. This includes displaying user-generated content (UGC) like reviews and product photos from customers in the shopper’s own country – a powerful signal of trust. Delivering a familiar online experience is also crucial, ensuring currencies, delivery times and product recommendations are based on the shopper’s location.”

Nosto’s research highlights the three key areas that merchants should focus on to build trust with cross-border shoppers.

• First, make key information visible and accessible on their websites. 69 per cent of survey respondents say stores can increase trust by making policies about returns/refunds and additional cross-border taxes/duties clear and easy to find. 65 per cent said they’d have more trust if there was a customer support telephone number in their home country.
• Second, provide localized social proof. 64 per cent of consumers say they’re likely to trust brands more if they see positive onsite reviews from other customers in their country and 55 per cent if they see onsite product photos (user-generated content) from peers in their home country who’ve made purchases. Similarly, 52 per cent said they’re more likely trust brands based in other countries if they’re active and mentioned positively on social media channels they use and (43 per cent) if their products are mentioned positively by influencers they follow
• Third, enhance trust with on-site localization to smooth the shopping experience. This includes automatically showing prices in the shopper’s home currency (mentioned by 64 per cent of respondents) and recommending relevant products based on the shoppers’ location (40 per cent).

Lower prices are the biggest reason for cross-border purchases

While consumers are suspicious if prices are too low, the desire to find cheaper products remains the key driver for those who have considered cross-border buys. 41 per cent of those who have purchased or considered buying items from abroad in the last year said it was to get lower prices versus 16 per cent who were seeking better quality products.

In fact, over half (53 per cent) agree that rising prices at home mean they’re more likely to look for products that might be more affordable in other countries. Worryingly, 29 per cent didn’t mind buying fake/counterfeit brand name products if they’re available cheaper from an online store abroad, rising to 45 per cent for Generation Z (16–24-year-olds).

Other reasons for considering cross-border purchases include the desire for unique or unusual products (33 per cent) or products not available at home (31 per cent). Almost a quarter (23 per cent) said it was because they’d seen particular products on social media—for Generation Z (16-24-year-olds), this rises to a third (33 per cent), making it the number one trigger for cross-border purchases for this age group.

Biggest triggers for considering cross-border purchases (all consumers)

• To get products at lower prices (41 per cent)
• To get products that are unique or unusual (33 per cent)
• To get brands/products I can’t easily get at home (31 per cent)
• To take advantage of a special discount or offer (31 per cent)
• To get products I have seen mentioned on social media (23 per cent)
• To get products that I feel are better quality abroad than I can get at home (16 per cent)

The US and UK marketing push by Chinese eCommerce marketplaces is clearly driving interest. Over half (54 per cent) of all consumers surveyed agreed that they’d heard of online marketplaces such as Temu and AliExpress and would consider ordering from them if they had products they were interested in.

At the same time, there’s an awareness of the environmental, social and governance (ESG) factors related to cross-border eCommerce. Over two-thirds (67 per cent) of survey respondents agreed they would not make a purchase from an eCommerce store in another country if they heard it was linked to factories with forced labor or poor working conditions. 49 per cent agreed that they were concerned about ordering products online from far-flung destinations because of the environmental impact of transporting them.

Nosto’s research found that Fashion & Accessories (70 per cent), Sporting Goods & Hobbies (57 per cent) and Health & Beauty (55 per cent) are the products cross-border shoppers are most likely to consider ordering from abroad.