In an age where digital storefronts are as significant, if not more so, than physical ones, the trends and tendencies of global consumers towards cross-border e-commerce provide invaluable insights for merchants and financial platforms worldwide. A recent study, spearheaded by the global payments and financial platform Airwallex, in collaboration with Edgar, Dunn & Company, brings to light the attitudes, preferences, and expectations of global consumers when it comes to international online shopping.

As we delve deeper into 2024, more than half of the global consumers surveyed have indicated a surge in their proclivity towards increasing their cross-border purchases in the subsequent six to twelve months. This uptick is not without its stipulations, however. The appetite for international online shopping comes with a demand for increased flexibility and transparency in payment and shipping processes.

This burgeoning trend is underpinned by a growing trust in international merchants, with 61% of consumers viewing these merchants as trustworthy, and 65% expressing confidence in the security of their personal and financial information while engaging in international transactions. Interestingly, the United States and China emerge as focal points of this global exchange, signifying not just the vastness of their markets but also the reciprocal trust and interest consumers from these countries have in each other’s e-commerce ecosystems.

The pivot towards digital payments is a notable enabler for this increased comfort in global online shopping, facilitating a more customized and transparent cross-border payment experience. The report underscores the importance of offering a variety of payment methods, revealing that a staggering 77% of consumers would abandon their purchase if their preferred payment method was not available. This sentiment is echoed in consumers’ demands for transparent disclosure of additional fees, such as currency conversion and international transaction fees, which can significantly impact the decision to finalize a purchase.

Credit cards remain the most frequently used payment method for international online shopping, followed by global digital wallets, reflecting the evolving landscape of digital finance. Furthermore, the report highlights the critical role of shipping policies in consumer decision-making, with costs and transparency being paramount, alongside the consumers’ challenges with lengthy refund processing times.

The motivation behind cross-border shopping is multifaceted, with consumers primarily seeking greater product options, better quality, and lower prices—demonstrating the global market’s potential to meet diverse consumer needs that may not be satisfied domestically. This desire for variety, quality, and value is also influencing shopping behaviors in specific regions such as the UK, the US, Australia, China, Singapore, and Hong Kong, each displaying unique consumer preferences that international merchants can cater to.

Another key finding from the study is the substantial growth of social commerce. The integration of shopping experiences into social media platforms is gaining traction, with a significant portion of consumers likely to make international purchases this way. This trend emphasizes the need for merchants to leverage these platforms creatively and effectively, to tap into a consumer base that values deals, recommendations, and interactive selling experiences.

In conclusion, the report from Airwallex provides a comprehensive overview of the current state and future expectations of cross-border e-commerce, highlighting the critical areas for merchants to address in order to capitalize on this growing market. By focusing on trust, flexibility, transparency, and leveraging social commerce, businesses can navigate the complexities of international transactions and cater to the evolving demands of global consumers. As the digital marketplace continues to expand, understanding these consumer preferences and pain points becomes essential for achieving success in the competitive landscape of global e-commerce.