The current state of e-commerce markets in 2022 and how American businesses can maximise their efforts when entering new markets are two of the main talking points of PPRO’s latest report.
To transition US goods and services from a homegrown setting to a global market, merchants must be fully aware of how to adapt and localise their services; including the opportunities and payment methods unique to the regions and countries into which they plan to expand.
When considering the growing fragility of customers in regards to checkout payment opinions, alongside the deafening demand for more payment methods, it’s clear that to ensure maximum consumer acceptance and the best possible conversion rates, a site must offer a range of familiar and trusted local payment methods.
To better understand this challenge, PPRO’s report provides comprehensive research on said topic, including current trends and cultural insights, to help payment companies, merchants and retailers alike to enter the global e-commerce market on the right foot.
“US merchants and retailers need to understand that in order to compete with international brands, they need to prioritise the customer’s preferences when it comes to payments,” explains Claire Gates, CCO at PPRO. “The global e-commerce market is booming and if US merchants want a chance to be top players, they need to be agile enough to evolve with the current payment ecosystem to expand into new regions and win new customers.”
Key findings from the report include:
Consumers need retailers to care about their preferences
A recent study found that between 35 and 45 per cent of what a consumer regards as a ‘good service’ is contingent upon that person’s culture and background.
The more a merchant’s digital channels feel authentic to the shopper’s language and local culture, the more likely that shopper is to complete the transaction. However, localisation in this context is far broader than simply translation, important as it is.
It means optimising every aspect of your site and your apps to meet local needs and preferences. While the e-commerce world is more interconnected than ever, localised strategies will always win out.
Your alternative is their normal: why local payment methods matter
Almost 70 per cent of Americans have a credit card, but globally this is true of only 18 per cent of consumers. According to PPRO’s research, up to 80 per cent of consumers will abandon a transaction if they reach the checkout and cannot find a payment method they know and trust.
To ensure maximum consumer acceptance and the best possible conversion rates, US merchants must offer a range of familiar and trusted local payment methods.
American brands are strong
The good news is that American merchants are competing effectively in these growing cross-border markets.
Asked where they bought their last cross-border purchase, half of Mexican shoppers, nearly half of South Korean, a third of Japanese, Australian and Indian shoppers and 20 per cent of Brits all say it was from the United States.
As the global cross-border market grows, so do the opportunities. Untapped regions and consumer groups that are participating in e-commerce for the first time are a ripe target for merchants, especially because of the acceleration of online shopping during the pandemic.
If US online marketplaces, brands and stores want to make the most of these opportunities, they have to be prepared to compete in today’s rapidly changing market. And the competition is fierce.
