Cross-border

e-commerce
What consumers want © 2022 PayU

Cross-border e-commerce: what consumers want 1

Introduction
From the dawn of civilisation, commerce has crossed borders.
Today, however, the rise of e-commerce has enabled individuals
to play a direct role in international trade, ordering goods
from almost anywhere in the word to arrive right on their
doorsteps.
Fuelled by increasing internet and smartphone penetration
globally, as well as enduring changes to shopping behaviours
resulting from the pandemic, ecommerce is flourishing. The
top online marketplaces sold an astonishing $3.23 trillion in
goods in 20211, and that is only set to increase. By 2030, it’s
expected that the business-to-consumer (B2C) e-commerce
market will exceed $7.5 trillion2.
In light of this explosive growth in global e-commerce,
PayU has commissioned research to better understand how
consumer e-commerce preferences are manifesting today. For
our research, we polled consumers from three major markets
in North America, Latin America, and Eastern Europe – the US,
Colombia, and Poland respectively. In total we polled more
than 3,000 consumers.
Cross-border e-commerce: what consumers want
This report summarises key findings from that research. In
addition to top-level data, readers will be able to compare
differing consumer attitudes towards e-commerce and cross-
border B2C trade, and gain insights into the role of payments
technology innovation in supporting consumer demand.
With the caveat that the countries surveyed may not reflect
broader regional trends, we nevertheless hope that our
findings are of use to merchants looking to take part in cross-
border B2C trade. The world economy is going through tough
times. For merchants this marks the ideal time to explore
cross-border opportunities and tap new markets to drive
growth. After all, fortune favours the bold.
1
What are the top online marketplaces?:
https://www.digitalcommerce360.com/article/infographic-top-online-
marketplaces/
2
B2C E-Commerce Market Size to Surpass US$ 7.5 Trillion by 2030:
https://www.globenewswire.com/en/news-release/2022/03/28/2411173/0/en/
B2C-E-Commerce-Market-Size-to-Surpass-US-7-5-Trillion-by-2030.html
2
To buy or not to buy?
Attitudes towards purchasing
goods from abroad
More individuals are buying goods from merchants located
overseas than at any time in human history. However, our
research shows that there’s still plenty of room for growth
in the international e-commerce market, with only around
a quarter of consumers we surveyed in the US (25%) and
Colombia (22%) having bought products or services from
abroad in the previous 12 months. Poland stood out against
this trend, with 46% of consumers buying products and
services from abroad in the last year. Twelve percent of
Americans, 14% of Columbians, and 19% of Poles have bought
from abroad at least once a month in the last 12 months.
Where are they buying from? Perhaps unsurprisingly given its
sheer manufacturing clout, China tops the list of countries
serving e-commerce consumers. In the US, 53% of consumers
who have shopped abroad online in the last year are reporting
purchasing goods from China compared to 63% in Poland and
67% in Colombia.
Looking at where else consumers are purchasing from, the
results differ between the surveyed countries. This is to
be expected and likely reflects factors including proximity
(companies located closer to consumers would generally be
able to deliver faster than those located further away) and
cost (such as the cost of manufacturing goods, transporting
goods, and any tariffs affected by trade deals).

US Colombia Poland

67%
61% 63%
53%

33% 36%
28% 28%
21% 21%
16% 15%
10% 9% 8%
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Figure 1: Top five countries or regions consumers have bought goods and services from in the cross-border e-commerce market

Of consumers that have not bought goods or services from
abroad over the past year respectively only 26% of American
consumers, 22% of Colombian consumers, and 22% of Polish
consumers, said this was because they feel they should
support stores located in their own country.
In part, this may be because it is unlikely any one country
can fully meet the needs of the modern consumer. Again,
looking at the subset of consumers who have not purchased
a product or service online from an overseas retailer, just 30%
of Americans, 20% of Colombians and 39% of Poles say a main
reason for not buying from online retailers based abroad is
because they can source everything they need from national
suppliers. For businesses looking to do business beyond their
own national borders that’s great news as it speaks to a
significant potential market size.

Cross-border e-commerce: what consumers want 3

What’s stopping people
buying from abroad?
Even if a shopper embraces the concept of buying from goods button, instead navigates away to a new page. Why is that?
and service providers based abroad, there are times when What barriers stand in the way of cross-border e-commerce?
their mouse cursor, having momentarily hovered over a “buy”
As discussed, for some people it’s because they can find
everything they need at home, though this tends to be less
true for 18-24 year olds. 38% of Americans, 27% of Colombians,
US
and 50% Poles in the 55+ age bracket who have not shopped
I can get everything I need from stores based in my own country abroad online in the last 12 months believe home-based
30% companies can meet their needs (this compares to just 6%,
Delivery cost including tax, is too high 10%, and 30% of 18-24-year-olds in each respective country).
29%
I believe I should support stores located in my own country Another major barrier to buying from abroad is the high
26% delivery costs / taxes associated with the practice, noted by
Delivery times are too long around a quarter to one third of all respondents who have
26% not shopped abroad online in the last 12 months (see Figure 2
It would be too complicated to make a return below). Complexity around returns is an issue too (see Figure
19% 2). Interestingly, concerns around returns, along with delivery
Products may not arrive / get lost in the post if they are being sent from abroad costs, is the most common reason for younger people in the
17% US (at 23% these were the main reasons for 18-24-year-olds
who have not shopped abroad online in the last 12 months
shunning overseas retailers), whereas in Colombia and Poland
this is less of a concern for this age group.
Colombia

I believe I should support stores located in my own country

22%
Delivery cost including tax, is too high US
22%
Delivery cost, including tax, is too high
I can get everything I need from stores based in my own country
20% 23%
I'm concerned that it would be too complicated to make a return
Delivery times are too long
20% 23%
Products may not arrive / get lost in the post if they are being sent from abroad
It would be too complicated to make a return
19% 21%

Products may not arrive / get lost in the post if they are being sent from abroad
17%
Colombia

Delivery times are too long

26%
Poland
Products may not arrive / get lost in the post if they are being sent from abroad
20%
I can get everything I need from stores based in my own country
I’m concerned about the security of my data and information
39%
18%
Delivery times are too long
35%
I believe I should support stores located in my own country Poland
22%
It would be too complicated to make a return Delivery times are too long
22% 38%
I'm concerned that it would be too complicated to make a complaint I can get everything I need from stores based in my own country
22% 30%
Delivery cost including tax, is too high I believe I should support stores located in my own country
20% 24%

Figure 2: Top six barriers to buying from overseas e-commerce stores by country Figure 3: Top three barriers to buying from overseas e-commerce stores by
country in age group 18-24

Cross-border e-commerce: what consumers want 4

Cross border e-commerce:
how people like to pay
When it comes to cross-border e-commerce, how people
pay is of the utmost importance. With real money at stake,
consumers need to have access to trustworthy payments
options that meet their needs against factors including cost
and convenience.
The importance of putting in place the right payment options
cannot be overstated. Fifty-five percent of Americans surveyed
say that if their preferred payment method was not available
when looking to make a cross-border purchase, they would
look elsewhere or not make the purchase at all. In Colombia,
the finding is similar at 52%, while in Poland 49% say the same.
Trust is also key. Across the board, nearly three quarters of
consumers say they would feel safer making purchases online
– whether domestic or abroad – if they recognised the brand of
the Payment Service Provider (73% in the US, 74% in Colombia,
and 88% in Poland). For a notable proportion of our respondents
(36% in the US, 41% in Colombia and 44% in Poland), knowing
which Payment Service Provider will process the payment is
important as it influences their shopping decision.
Cross-border e-commerce: what consumers want
The data also showed that when shopping online from abroad,
the appetite for using Buy Now Pay Later is still relatively
weak in the US market, with only one in 10 Americans who had
bought from abroad in the past 12 months using the option
most often. In Colombia, the proportion was considerably
lower, at just 4%. It was also low in Poland at 6%.
For both US and Colombian consumers, credit cards still reign
supreme as the payment option of choice when it comes to
buying from retailers based abroad (US: 55%, Colombia: 49%),
while Polish online shoppers prefer to pay with a bank transfer
(41%) followed by credit cards (21%) which refers to both the
entire population as well as different age groups too.
However, change may be on its way: at 17%, Buy Now Pay Later
was the most popular option for 25-34-year-olds, whereas in
Colombia bank transfer was overwhelmingly favoured by this
group, with 51% citing their preference for this channel.
5
Most popular items
purchased from abroad
Finally, perhaps one of the most important questions for One trend to note is that while in the US demand for goods
retailers: what are people buying when they shop abroad? is fairly evenly spread, in Colombia and Poland demand is
Across all three countries, fashion items, shoes, and bags were skewed towards fashion and electronics, perhaps indicating
the goods most bought or considered for purchase by people that these two areas are not as well served by the country’s
who regularly shop across borders (see Figure 3). Other in- internal retailers, or those kinds of products are cheaper when
demand items common to all the counties surveyed include ordering them from abroad.
electronics, and toys along with items relating to hobbies and
DIY. In the US, books are also a priority, whereas in Colombia
and Poland, consumers are more likely to buy beauty and
cosmetics and jewellery & watches.

US Colombia Poland

57%
49% 50%

37% 37% 36% 38% 38%

32% 32% 34%
26% 26% 25%
20%

Fashion, shoes, and bags Electronics Health & personal care Jewellery & watches

Toys, hobbies, and DIY Books Beauty & cosmetics

Figure 4: Top five items being bought or considered by those who have bought products from abroad by country

Cross-border e-commerce: what consumers want 6

Conclusion
The age of e-commerce is well upon us, and the market has
matured rapidly over the past decade. Our research reveals
that a significant proportion of consumers are willing to spend
their money abroad, in the process creating a major market
opportunity for international merchants looking to do business
outside their home countries. Significantly, with a sizeable
portion of the addressable market still untapped, there is still
plenty of room for cross-border e-commerce growth.
There are two clear levers for success. First retailers should
look to put in place the right payments platforms to build
trust and provide consumers with the payment options they
wish to use. The more payment options that a merchant
Cross-border e-commerce: what consumers want
offers, the less likely that a potential customer will be put off
from making a purchase.
Second, retailers should look to partner with payments
companies that combine local expertise with global reach.
Payments partners can help reduce barriers to entry to new
markets, navigate local customer needs, and ultimately reduce
the time it takes to get sales flowing in that market.
Cross-border payments represent a significant opportunity for
retailers to grow their e-commerce operations and reach into
new markets. Those that get started now stand to benefit
the most.
7
About the surveys
Ipsos interviewed a sample of 1,092 adults aged 18-75 in the United States between 10-14 June 2022, and 1,000 adults aged 18-64
in Colombia between 10-15 June 2022. Subgroups reported on are those aged 18-24 (US: n=60, Colombia: n=112) and those aged
55-75 in the US (n=226) and 55-64 in Colombia (n=93). Data has been weighted to the known offline population proportions for
age, gender, region and working status. All polls are subject to a wide range of potential sources of error. All analysis and reporting
was conducted by PayU.

The survey in Poland has been conducted by ARC Rynek i Opinia, a market research institute. ARC interviewed a sample of 1,050
adults aged 18-75 in Poland between 31 August - 7 September 2022. Subgroups reported on are those aged 18-24 (n= 117) and those
aged 55-75 (n=228). Data has been weighted to the known offline population proportions for age, gender, region and working
status. All analysis and reporting was conducted by PayU.

About PayU
PayU is the e-payments and fintech business of Prosus, a global consumer internet group and one of the largest technology
investors in the world. PayU is a leading online payment service provider, operating in 50+ high-growth markets, dedicated to
creating cutting-edge financial services tailored to the needs of over 450,000 merchants and millions of consumers. Focused on
empowering people through financial services and creating a world without financial borders where everyone can prosper, PayU is
one of the biggest investors in the fintech space, with investments totalling over $5 billion to date.

As an online payment service provider, it deploys more than 400 payment methods and PCI-certified platforms to process
approximately 10 million transactions every single day. It also specializes in innovative consumer and small business products that
improve access to credit and banking services in markets that are underserved by traditional financial services providers.

From tech adoption, online shopping behavior, and payment preferences, to regulatory landscapes, PayU gives merchants the best
chances of success when expanding across borders. Thanks to PayU’s payment orchestration platform – the PayU Hub, merchants
can build a payment stack to cater to the needs of prospective customers with a top-of-the-line shopping experience.

For more information, please visit our website.

© 2022 PayU

Cross-border e-commerce: what consumers want 8