Commentary

Buyers Without Borders

According to a new study from Nielsen to gain a better understanding of the connected Ecommerce landscape, the online retail ecosystem is fast evolving, and increasingly, shoppers no longer simply go to the nearest store, but grab the nearest digital device. eMarketer, notes the report, projects that online retail sales will more than double between 2015 and 2019 and account for more than 12% of global sales by 2019.

While connected commerce is still largely a domestic affair, with consumers primarily ordering from retailers in their own country, cross-border ecommerce is a growing phenomenon, says the report. Shoppers are increasingly looking outside their country’s borders, as 57% of online respondents in the study, who made an online purchase in the past six months, say they bought from an overseas retailer.

74% of respondents from India, who purchased online in the past six months, say they bought items from an overseas retailer. But this isn’t just a new market trend, says the report; Roughly two-thirds of respondents in the Western European countries in the survey say they purchased from an overseas retailer, including 79% in Italy, the highest percentage in the online study, and 73% in Germany.

Patrick Dodd, President, Nielsen Global Retailer Vertical, reports that “…technology is giving consumers access to a world of products previously unavailable… choice is greatly enhanced by cross-border e-commerce… in many developing markets… growing middle class is trading up and demanding greater assortment than found at their domestic retailer… “

With more choices available to consumers, the shopping experience becomes a key differentiator between banners, says the report. However, optimizing the experience starts with a deep understanding of the local market, including:

  • Local perceptions
  • Delivery infrastructure
  • Technology adoption and use
  • Financial and currency systems
  • Regulatory and customs requirements

In addition, retailers must ensure that products meet quality standards, prices are set reasonably, logistics systems are safe and efficient and after-sales service is optimized for fair refunding/exchanging processes, concludes the report.

For additional information please visit Nielsen here.

 

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