In recent years, cross-border online shopping has been growing rapidly with the trend set to continue.  

According to Statista, the global cross-border e-commerce market is expected to reach USD2.5 trillion by 2026, up from USD579 billion in 2019¹. This growth is driven by factors such as increased internet penetration, rising disposable incomes, as well as improved logistics and payment systems.

Another reason for the accelerating growth is the increasing popularity of marketplaces and platforms that enable small and medium-sized businesses to sell their products globally. These platforms have reduced the barriers to entry for international trade, making it easier for businesses to expand their customer base beyond their domestic shores.

However, as e-commerce merchants and platforms strive to capture consumer spend and expand market share globally, are they able to deliver what customers are looking for?

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1. Competitive & Transparent Pricing

Customers are ultra price-sensitive with three quarters of them citing price as a key factor influencing their purchasing decisions in a 2022 report by Shopify². Besides a good bargain, consumers also value transparent prices at the point of browsing. Last-minute price shocks introduced at checkout will increase buyer hesitation and often lead to cart abandonment, resulting in failed sales conversion. Providing clear and fixed prices upfront is therefore a major challenge of e-commerce retailers, especially as they grapple with fluctuating foreign exchange rates involved in cross-border transactions.

2. Personalised Shopping Experience

Localisation is one of the key considerations when targeting customers in different markets. Besides bearing in mind factors such as cultural sensitivity and language, allowing customers to pay in their local currency will help create a more seamless user journey and greatly improve the overall shopping experience.

In today’s crowded e-commerce space, personalising customer experience will allow merchants and platforms to gain a competitive advantage over other players, ultimately driving higher sales and revenue.

3. Hassle-free Shipping and Refunds

Fuss-free shipping and refund processes are crucial to cross-border e-commerce customers as they provide a sense of security and confidence in their purchasing decisions.

Customers want to be assured that the product they buy will arrive on time, in good condition, and with transparent tracking information. This helps to build trust and loyalty between the customer and seller, therefore increasing the likelihood of repeat business.

In addition, refunds are just as important as they give customers the confidence to try new products and services without the fear of losing money. Refunds at a guaranteed rate will reduce the uncertainty of customers buying from overseas sellers that are usually associated with higher risk.

Addressing What Customers Want with M-DAQ

Navigating the cross-border e-commerce landscape comes with its challenges but can be highly rewarding given its massive market size and growth potential. One of the most crucial steps to secure the pockets of customers is to be able to address their needs and wants.

M-DAQ's Aladdin e-commerce solution enables online merchants and platforms to display prices in the home currencies of international customers. FX rates are guaranteed for 24 hours to 72 hours and any refund within 90 days will be processed using the original transacted FX rate.

Learn more on how we can help: https://bit.ly/3nG1Jiy

References:
1. Statista, Cross-border e-commerce market value worldwide in 2019 and 2026
2. Shopify Plus, The Future of Commerce 2022