In an era where digital borders are increasingly becoming a thing of the past, a recent report by Airwallex, in collaboration with Edgar, Dunn & Company, has highlighted a significant trend: a surge in cross-border spending.
According to the report, a striking 54% of global consumers are gearing up to increase their international online shopping activities, driven by a growing confidence in international merchants. Indeed, 61% of those surveyed view these merchants as trustworthy, a sentiment that underscores the importance of security and transparency in fostering consumer trust.
The Airwallex report goes further to unpack the desires and expectations of consumers engaging in cross-border e-commerce. The findings reveal a crucial demand for flexibility and transparency, not just in payments but also in shipping arrangements. As the digital marketplace expands, over half of the consumers indicated they would likely make purchases from international merchants via social media, signifying the interconnection between e-commerce and social platforms.
Amidst the backdrop of economic uncertainties and the ever-evolving global market, Kai Wu, Chief Revenue Officer at Airwallex, emphasised the resilience of consumer spending. “E-commerce is more global than ever,” Wu noted, pointing out the potential growth of the global cross-border e-commerce market to an estimated USD 7.9tn by 2030. This growth projection highlights the critical need for merchants to address consumer pain points to enhance the customer experience effectively.
Airwallex’s inaugural global e-commerce report sheds light on several key insights that could redefine the future of international e-commerce. Among these, the security of personal and financial information emerges as a pivotal factor in consumer confidence, with 65% of respondents expressing trust in the protection of their data during international transactions. The report also identifies the United States and China as leading regions for cross-border shopping, demonstrating the diverse preferences and behaviors of consumers worldwide.
The convenience and seamlessness offered by digital payment methods have played a significant role in encouraging consumers to shop from international merchants. However, the report highlights a critical challenge: the necessity of offering preferred payment options. A staggering 77% of consumers would abandon their cart if their favoured payment method were unavailable, pointing to the urgency of integrating diverse payment solutions.
Moreover, the report delves into the motivations behind cross-border shopping, from the quest for better product selection and quality to the allure of lower prices. It also notes the rising popularity of social commerce, with a significant number of consumers inclined to make purchases through social media platforms. This trend indicates a shift towards more interactive and socially-driven shopping experiences.
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