Canada, Australia rank highest in cross-border ecommerce choices

Wednesday 6 August 2014 13:07 CET | News

Canada (84%) and Australia (54%) are US retailers’ top choices for cross-border ecommerce, according to the MCM Outlook 2014 report issued by the market research media agency Multichannel Merchant.

The same report notes that Japan and New Zealand (39% each) come next in line.

60% of Canada’s online shoppers buy from US merchants and 37% of the world’s cross-border shoppers are Canadian, according to research from global card processing firm Payvision.

Additionally, eMarketer reports that 7 out of every 10 online purchases made in Canada are from merchants outside the country.

Misko Kancko, director of international strategy for Canada Post, informs that Canadian online shoppers buy cross border either because of the lack of product in the local market or due to lower prices at foreign retailers, situation which explains the large flow of inbound goods.

In addition, Kancko claims that an important factor for shopping cart abandonment cited by Canadian consumers is failure to offer promotions or discounts (60%), followed by lack of a clear returns policy (34%). Free or discounted shipping is also a major driver because those retailers who offer such services record a 69% lift in conversions.

Australia’s ecommerce market is not subject to import tariffs or duties on any item under AUD 1,000 Australian. Consumers there also have high levels of disposable income, and goods sold at retail are expensive due to labor costs.

Check out our Cross-border Ecommerce Research section here for more info on country-specific ecommerce facts and figures, preferred payment methods, risk and fraud, as well as ecommerce legislation and regulation for mature and emerging markets.

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Keywords: Canada, Australia, Japan, New Zealand, cross border, ecommerce, online sales, Customers, retailers
Categories: Payments & Commerce
Countries: World
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