Cross-border shoppers face 11% more friction during checkout
The world is big and the rise of cross-border e-commerce offers businesses unprecedented opportunities to reach new customers and expand into new online markets.
However, outdated or insufficient online payment and payment capabilities prevent many online merchants from fully seizing this opportunity.
In fact, new data reveals that shoppers around the world expect personalized and streamlined equivalent features that make it easier to navigate websites and make purchases when browsing abroad.
According to The Cross-Border Merchant Optimization Index, a collaboration between PYMNTS and Digital River, a review of 137 retail merchant e-commerce sites from six countries across six verticals found that cross-border e-commerce checkouts faced 11% more friction than national funds.
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The study reveals that eTailers have continued their efforts to improve their cross-border experiences by adding more interface personalization and payment features to their sites since 2016.
Despite these improvements, companies still offer far less functionality for cross-border transactions than domestic transactions. According to the data, the average score of the cross-border e-commerce merchant index (53.8) is much lower than its national index (60).
In addition, the data also showed that the cost of cross-border e-commerce purchases was significantly higher than domestic purchases, with global merchants on average charging 17% more for these international transactions. The premium is even higher in the United States, where domestic traders on average charge 43% more for cross-border transactions than for domestic transactions.
The result is a drastically different shopping experience for domestic and international e-commerce consumers, even when shopping on the same website, as e-merchants tend to charge different prices and payment features. for cross-border and national transactions.