Cross border ecommerce will surge in coming years with compound annual growth rates comfortably exceeding 30 per cent for a parcel of major international markets through until 2017, although not in Australia.

The weakening Aussie dollar and the reintroduction of industry protection via the application of GST to purchases under $1000 has dampened consumer enthusiasm. Rent seeking still pay, it seems.

Not surprisingly however the US and China are the two biggest destination markets for in bound online shoppers, while India and Nigeria look set to experience the strongest cross border spending this year, according to a report released by Paypal.

According to the researchers, “As with last year’s findings, ‘made in the USA’ continues to carry sway around the world. A full 25 percent of online shoppers surveyed across 29 countries1 report purchasing from US-based websites in the last 12 months. The next most popular countries are China (19 percent of online shoppers have purchased from Chinese sites) and the UK (14 percent).”

The study also found however that American shoppers infrequently shop beyond their own borders. “While among all respondents surveyed around the world, 50 percent of online shoppers report making purchases from a website in another country in the last 12 months, only 22 percent of American online shoppers have done so. Of the 29 countries surveyed only Japan has a lower volume of cross-border shoppers, at 12 percent.”

The top border hoppers are Ireland, Austria and Israel with 86 percent, 85 percent and 79 percent respectively of online shoppers having made a cross-border purchase in the past 12 months.

pay pal studty

Called PayPal Cross Border Consumer Research 2015 in only a bare majority of markets surveyed did consumers tend to online shop online in domestic markets, and with the predicted trend that majority is disappear quickly.

Most purchases are still made on  PC however the result skews more heavily towards mobile in developing markets, particularly in African countries.

And as to what consumers are buying, clothing and apparel is the most popular category for cross-border purchases in five of the six regions studies. Africa is the exception where entertainment and education top the list.

Consumers also expressed a strong preference for the ability to pick and choose currency options when they purchase. A clear majority in almost all markets said they would prefer to have the option of paying either in local currency or their own currency

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