Online spend to touch Rs.7,02,900 crore by 2017, according to PayPal cross border research

The Global Cross Border Consumer Research 2015 report, was released by PayPal in collaboration with IPSOS. It is an extensive research document which gives vital insights into the growing ecommerce market and also outlines the key trends in shoppers global spending habits. To find out more, read on.

The research evaluated the online and cross-border shopping habits:

• Of over 23,000 internet users
• Across 29 countries
• Which includes 808 interviews in India

“Cross border spends by Indians is estimated to grow at 78.5% from 2015 to 2016. PayPal is used as a cross-border payment option by 84% of the cross border shoppers. PayPal’s unique offerings like Buyer Protection and Refunded Returns have helped address some of the barriers like safety and security and return shipping faced by shoppers while transacting cross border. The Indian e-commerce space is experiencing an exciting time where innovation is the key. Our research reveals that the advent of technology is slowly diminishing borders for online shopping. With the number of online shoppers set to grow exponentially, it will lead to increase in the numbers shoppers who shop from global retailers with online presence.” said Vikram Narayan, Country Manager and Managing Director, PayPal India.

Desktops on top, but for how long?

The report suggests that desktops was still the most popular choice for shoppers who purchase products online from another country, although mobile is slowly catching up, with the smartphone and tablet becoming popular modes for transaction.

Shoppers who have not shopped cross border gave following reasons:

• High shipping costs
• Customs fees/tax
• Difficult to return products
• Having to make payments in foreign currency
• High return shipping costs
• Theft and identity fraud concerns

Reasons given for cart abandonment while shopping on foreign ecommerce sites:

• Preferred mode of payment not available
• Added tax and custom fees not clearly stated
• Website security concerns

Preferred mode of payment:

• PayPal (84%)
• Visa Debit (58%)
• Visa credit card (42%)

Reasons for PayPal popularity as a cross border payment method:

• Quick processing of payment (56%)
• Safer way to pay (54%)
• Well known/trusted brand (50%)

Looking to the future

By 2017, the reports expects the combination of online shopping, including cross border shopping to reach Rs. 7,02,900 crore. In 2016 the consumer electrics and entertainment category is expected to grow by a whopping 48%. The grocery, food and alcohol segment is predicted to witness a 43% increase. It is also forcasted that the Health and Beauty category will grow by 41%, while travel will receive a 40% favourable increase.