The Borderless Commerce Opportunity Before Us.
The Covid-19 pandemic forever changed the way consumers transact. Months-long lockdowns, contagion-prevention measures and product shortages fueled a massive shift to online channels, with global e-commerce sales rising 26.7% on year to USD $4.28 trillion.1 As newly ingrained shopping habits accelerate, new e-commerce opportunities are emerging.
Many of those opportunities extend across borders. According to PayPal’s 2021 Borderless Commerce Report, 22% of consumers in the 13 markets surveyed said they became more comfortable with cross-border shopping since the pandemic.2 Those who made cross-border purchases spent more overall than they did when buying from local retailers and domestic shops.3 With shopper intent to increase their online spend at least twice as high as any intent to pull back,4 an unmissable opportunity is at hand.
To capitalize, merchants must provide a seamless shopping experience akin to that of domestic sellers, while competing on price and product selection. Nearly half of consumers who pivoted to cross-border transactions were attracted by better deals, while 40% sought access to products they couldn’t get at home, according to PayPal’s Borderless Commerce Report.5 Both are crucial to maintaining a competitive advantage. Merchants must also find ways to address the top three cross-border concerns: shipping costs, delivery speeds and concerns that items may not arrive.6
Providing an omni-channel e-commerce experience is equally important. Smartphones were the preferred device for online shopping across all markets that PayPal surveyed.7 The global mobile commerce market is forecast to reach US$3.9 trillion by 2026, a more than eight-fold increase from US$472 billion in 2019.8 Empowering consumers to shop on the platform or device they prefer is often the first step to engaging them.
The pandemic-driven disruption has accelerated e-commerce from every angle including adoption, mobile usage, spend, cross-border sales and omni-channel shopping. Now is the time for your business to seize the moment. Access PayPal’s Borderless Commerce Report to explore individual opportunities in 13 of the world’s most vibrant e-commerce markets and find inspiration for your cross-border journey.
