A taste of the findings in our extensive report on how merchants can enter and new international markets.
With the eCommerce landscape becoming more and more competitive, merchants are being forced to constantly think of new ways to generate growth. One of the most accessible, yet underutilized channel is cross-border online sales. Consumers are expected to spend $627 billion on goods from overseas merchants by 2022, with the highest growth rates projected in regions outside of North America and Western Europe.
Yet moving into new international markets is no simple endeavor and can be challenging to navigate. This could be why nearly 60% of surveyed US merchants reported that their eCommerce website did not accommodate global business.
Riskified created a comprehensive report that shares insights to assist retailers considering expansion into new geographical regions. In this blog post, I’ll share a taste of the findings in our full report.
The holidays just got merrier
It’s well established that holiday sales have a lot of appeal for foreign consumers. Analysis of Riskified data reveals that during the holiday season (mid-November through December), US retailers see a volume increase of nearly 500% in online orders from Latin American IPs, compared with the rest of the year. US eCommerce merchants can also expect a 214% increase in purchases from Asia Pacific, a 203% hike in orders from European IPs, and a 145% spike in orders coming in from the Middle East over these six weeks.
But overseas customers also celebrate dozens of highly profitable shopping days besides those best known in North America. In 2017, Riskified saw the median weekly value of orders from the Middle East increase by over 10% during the first three weeks of Ramadan. The weeks of Eid al Adha proved to be even more fruitful, with sales increasing by over 200%! Becoming acquainted with global holiday shopping trends and using this information to target cross-border shoppers is an excellent way to maximizing revenue.
Cross-border orders have a higher dollar value
In certain verticals, orders placed from abroad with US merchants are of a significantly higher dollar value than their domestic counterparts. For instance, Riskified data shows that fashion purchases from the Middle East are worth 65% more than domestic US orders, while shoppers from Asia Pacific typically spend 33% more on their average fashion shopping cart compared to American shoppers.
Another example is in Auto Parts orders from the Middle East: they’re worth 63% more than US domestic orders.
Because of these discrepancies in cart values, merchants should note that rules that slate orders for fraud review based on value may need to be adjusted for different markets.
Mobile eCommerce sales are soaring
The rate of orders made via mobile devices is quite variable across regions. Mcommerce orders are surging in Asia and Latin America, where people are gaining access to the Internet by way of mobile phones rather than computers. Riskified data corroborates this: nearly 65% of orders with an Indian billing address were made via mobile devices – and 99% of these were safely approved.
If you’re expanding into a mobile-first market, make sure your eCommerce site is optimized for mobile, and that your fraud process is adapted to vet orders based on the unique data points from this channel.
Get your copy of the report
Cross-border shoppers are a growth engine that can help generate new eCommerce revenue. A sound, research-based expansion strategy can be key to gaining an edge on the competition. By getting familiar with local shopping habits and fraud patterns, language needs, country-specific shipping and fulfillment requirements, taxation, foreign currencies, and local payment methods, merchants can better tackle the challenges of global expansion.
The insights in this post are just a sampling of the data included in our report on embracing cross-border eCommerce. To get a better understanding of the patterns and trends we detect across different international regions, get a free copy of the full report, click here.