Presentation on theme: "PayPal Cross-Border Research 2014 GLOBAL SNAPSHOT"— Presentation transcript:
1PayPal Cross-Border Research 2014 GLOBAL SNAPSHOT CONFIDENTIALPayPal Cross-Border Research 2014 GLOBAL SNAPSHOTPayPal Project Sponsor: Melissa O’MalleyPayPal Market Research Contact: Daniel JenkinsonIpsos MORI Contacts: Eleanor Pettit & Peter Attwell
2Research MethodologyThis study was conducted across 22 markets and 17,500+ consumers globally.FieldworkSample, per marketGlobal Fieldwork conducted Sept-Oct 201422 marketsThis research was carried out to the international quality standard for market research, ISO 20252:2012Sample of c.800 per market.Own and/or use an Internet-enabled device*Nationally representative of online population Aged 18+Online surveyData weighted to adjust for known population incidence and demographic profileRespondents recruited from online panels20 minute questionnaireQuestionnaireTransaction & Spend:Past 12 Months &Next 12 MonthsE-commerce Behaviour and AttitudesCross-Border CommerceMobile CommerceScreening*Desktop computer/Laptop/ notebook computer/Tablet /Smartphone/Some other type of mobile phone/Electronic organizer / PDA with wireless voice and data features/Games console with Internet connectivity (e.g. Wii)
3GLOBAL SNAPSHOTUK, France, Germany, Austria, Switzerland, Italy, Spain, Netherlands, Sweden, Norway, Denmark, Poland, Turkey, Russia, Israel, UAE, USA, Canada, Brazil, Mexico, China, Australia
4Summary of findings: Cross border (CB) global study Market penetration: CB is a driving force in the global marketplace with ~50% online shoppers saying they buy from other countries around the world (country average, not weighted for market size).Market opportunity: Growth of online CB expected, especially from emerging markets.CB hotspots: Western Europe (esp. UK, DE), North America (esp. US) and APAC (esp.CN) are the three key CB destinations (i.e. most CB consumers buy from these three regions). Significant intra-EU trade is evident.What’s bought: Clothing/footwear/accessories and consumer electronics (incl tablets, mobiles, peripherals) are the most sought after CB categories.CB shoppers are valuable consumers: their total online spend (domestic and CB) is around 2x that of domestic only shoppers. They also get the benefits of online shopping.CB shoppers are more mobile oriented than domestic only shoppers.Top pain points: delivery shipping costs, duties/taxes/fees and concern about not receiving item.Top drivers: free shipping, having a safe way to pay, access to items, lower cost of items, free return shipping.Free return shipping is considered a ‘must-have’ by around half of shoppers, a similar proportion to free shipping.PayPal is a dominant payment method for cross border: In a majority of markets, PayPal has a relatively high penetration of usage for CB purchases compared to other payment methods. This also correlates with markets where eBay is strong domestically or has a good share of CB.
5Cross border commerce is a driving force in today’s global marketplace A significant proportion of online shoppers claim to make cross border purchases, and almost all cross border shoppers also shop domestically.Self-stated domestic and cross border purchasing in past 12 months%56%Multi-country average* for CBNorth AmericaWestern EuropeNordicsCentral, Eastern EuropeMiddle EastLatin AmericaAsia Pacific* Multi-country average not weighted by market sizeBase: Online shoppers. N=12,349. Q. Thinking about shopping online, from which of the following country or geographies’ websites have you purchased in the past 12 months? Please include your home country if applicable.
6Central, Eastern Europe Expect continued cross border growth and penetration, especially from ‘emerging’ marketsConsumers are generally positive about shopping cross border more often.CBT shopping intentRU TR BR CN10% online adults to start shopping cross border*25% online adults to shop cross border more often*%North AmericaWestern EuropeNordicsCentral, Eastern EuropeMiddle EastLatin AmericaAsia Pacific* Multi-country average not weighted by market sizeBase: Online adults. N=12,878. Q36f. In the next 12 months, how do you think your online shopping habits will change, if at all, in terms of how often you purchase from online stores in your country or from another country?
7US and China are most popular cross border destinations. W US and China are most popular cross border destinations. W. Europe a key region.Popular online destinations for cross border shoppers*What are the popular online destinations for cross border shoppers within a particular region (including intra-region international purchasing)?%NordicsUSA 31%UK 30%Germany 19%China 15%CEEChina 24%USA 16%Germany 13%UK 11%W. EuropeGermany 28%USA 18%UK 17%China 13%North AmericaUSA 32%China 15%UK 10%Note on interpretation: figures are % of global* online shoppers buying internationally from these countriesMEUSA 36%China 29%UK 17%Hong Kong 11%APACUSA 31%UK 20%Hong Kong 17%China 15%Note on interpretation: North American shoppers buy from these countriesLATAMUSA 39%China 26%*22 country average (not weighted by market size)Region definition (countries surveyed): Western Europe: UK, Germany, Austria, Switzerland, France, Italy, Spain, Netherlands; Central and Eastern Europe: Poland, Russia; Nordics: Denmark, Sweden, Norway; North America: USA, Canada; Latin America: Mexico, Brazil; Middle East: Turkey, Israel, UAE; Asia Pacific China, AustraliaBase: Online shoppers. N=12,349. Note: China and HK asked separately. Includes intra-region purchasing. Q. Thinking about shopping online, from which of the following country or geographies’ websites have you purchased in the past 12 months? Please include your home country if applicable.
8Clothing, footwear and accessories and consumer electronics are top cross border categories purchasedTop 10 CB categories purchased* (%)Top CB categories purchased by regionClothing/apparel, footwear and accessoriesConsumer electronics,Toys and hobbiesTravel and transportationEntertainment/education (physical items)Cosmetics/beauty productsJewellery/watchesEntertainment/education (digital)Sports/outdoorsHousehold appliances, household goods and furnitureNordicsClothing/footwear 36%Travel/transport 21%Entertainment/ (phys) 21%Consumer electr. 21%Toys & hobbies 17%W. EuropeClothing/footwear 33%Consumer electr. 24%Entertainment/ (phys) 21%Travel/transport 20%Toys/hobbies 17%North AmericaClothing/footwear 33%Entertainment/ (phys) 24%Travel/transport 17%Toys/hobbies 17%Consumer electr. 16%CEEClothing/footwear 50%Consumer electr. 35%Toys/hobbies 30%Cosmetics/beauty products 24%MEClothing/footwear 47%Consumer electr. 34%Travel/transport 28%Toys/hobbies 27%APACClothing/footwear 43%Cosmetics/beauty products 26%Consumer electr. 25%Entertainment/ (phys) 23%Jewelry/watches22%LATAMClothing/footwear 47%Consumer electr. 38%Toys/hobbies 24%Entertainment/ (digital) 23%Cosmetics/beauty products 22%i.e. people in NA like to buy ‘xyz’ from other countries*22 country average (not weighted by market size)Region definition (countries surveyed): Western Europe: UK, Germany, Austria, Switzerland, France, Italy, Spain, Netherlands; Central and Eastern Europe: Poland, Russia; Nordics: Denmark, Sweden, Norway; North America: USA, Canada; Latin America: Mexico, Brazil; Middle East: Turkey, Israel, UAE; Asia Pacific China, AustraliaQ. In the past 12 months, what kinds of products have you purchased from websites from other countries? Please select all that applyBase: Online cross border shoppers. N=6,899. Q. In the past 12 months, what kinds of products have you purchased from websites from other countries? Please select all that apply.
9Cross border shoppers are valuable consumers They spend more online, see the benefits of shopping online and are more mobile oriented.Online spendOnline shopping attitudesShare of online spend on mobile(self-stated)% Somewhat/Strongly AgreeDomestic OnlyShoppersCross-BorderShoppers*Domestic Only ShoppersCross-Border Shoppers*Enables me to shop anytime, anywhereHelps me locate info. about retail stores (e.g. opening hours, locations)I like that I can make purchases from the comfort of my homeGives me more product choiceHelps me research and choose items I plan to purchase in storeGives me back timeMakes my life easier around the holiday seasonEnhances my experience of shopping in storeCB shoppers expect +6ppt share of spend from mobile vs domestic only shoppers2x…the amount that cross-border shoppers spend online vs domestic only shoppers*** * self-stated. N=5448 domestic; n=3936 cross border* shoppersN=5448 domestic; n=3936 cross border* shoppersN=5448 domestic; n=3936 cross border* shoppersQ18. Here are some statements that some people have made about shopping online, via any device. Please indicate whether you agree or disagree with each statement.Q14. Thinking about the next 12 months, do you expect your proportion of spend by device to increase, decrease or stay the same?Base: Online shoppersQ6. Thinking about each of the following categories below, what is your personal total annual online and offline spend in the last 12 months? This includes food, clothing and other items but excludes rent or mortgage payments, utility bills (gas, electric, council tax) and large one off payments (e.g. buying a new car)?Please type in the closest full number to your total spend in SEE INSERTS FILE FOR CURRENCY LIST. For example, if your total spend is 12.99, please type in 13. If you’re unsure, please provide your best guess. If you don’t have any spending for the following categories, enter nothing or 0.By online we mean any purchase made on the internet via a desktop / laptop / notebook / Smartphone or Tablet. By offline we mean any purchase made in a physical store.TOPOnline (Internet via any device)Offline (Physical stores)Multi-country average.* Those who spend >10% of their online expenditure cross-border
10However, CB shoppers still face hurdles… Top pain points are delivery shipping costs, duties/taxes and concern about not receiving the item.Barriers to Cross-Border ShoppingTop 10 barriersOther barriersDelivery shipping costsConcern about customs duties/fees /taxesConcern that I may not receive the itemConcern item would not be as describedDelivery time not fast enoughDifficult process for returning productsConcerns about counterfeit goodsMay not receive sufficient help if problemsReturn shipping costsConcern about identity theft / fraudLack of buyer protection or insurance in case of problemsConcern about security of my financial or personal detailsPreferred payment method not always offeredUnsure of the return policy for shipmentsCurrency conversion rate not favourableLack of tracking and notificationDifferent language of websites, product descriptions and customer supportPayment is in foreign currency% of those who shop cross-border% of those who do not shop cross-borderBase: N=5448 domestic; n=6899 cross border shoppers. Multi-country average. Q. Which of the following reasons prevent you from making purchases from websites from another country? /[ …more often]?Which of the following reasons prevent you from making purchases from websites from another country? / Which, if any, of the following reasons prevent you purchasing from websites from another country more often?
11There are ways to drive cross border online shopping Key drivers are free shipping, safe way to pay, access to items, low cost, free return shipping.Drivers for Cross-Border Shopping (%)Top 10 driversOther driversFree shippingSafe way to payCan find items which are hard-to-find locallyLower overall cost to buy items from another countryFree return shippingCustomer support in my languageWebsite available in my language or translation availableLower shipping costsCosts shown/payment possible in your local currencyProof of product authenticityFavorable returns policyFavorable buyer protectionFaster deliveryLower transaction feesOffers my preferred way to payShipping costs, if any, shown before checkoutCoupons/promotions/discountsOffer delivery tracking/notificationsWider product selectionVisible, trusted payment logoFavorable currency conversion rateIf I needed to send a gift to someone living in that countryFlexible delivery datesQ. Which, if any, of the following would make you more likely to buy from a website from another country?Which, if any, of the following would make you more likely to buy from a website from another country?Base: Online shoppers. N=12,349. Multi-country average. Q. Which, if any, of the following would make you more likely to buy from a website from another country?
12Free return shipping is a ‘must have’ PayPal’s initiatives are well-aligned with cross border shopper needsImportance of Shipping Options when Shopping Domestically or Cross-BorderFree shipping / free deliveryFor domestic shoppingFor cross-border shoppingExpress deliveryFlexible delivery timesFree shipping / postage for returns% Nice to Have% Must HaveBase: Online adults. N= Multi-country average. Q. Listed below are some options for delivery/returns that could be offered by online retailers. For each option, please indicate how important it would be to you for an online retailer to offer this if you were considering making a purchase from them. Please think about both domestic websites (retailers based in your country) and websites from another country, and select one answer for each option.Q20. Listed below are some options for delivery/returns that could be offered by online retailers. For each option, please indicate how important it would be to you for an online retailer to offer this if you were considering making a purchase from them. Please think about both domestic websites (retailers based in your country) and websites from another country, and select one answer for each option.[PN: RESPONSES ACROSS THE TOP]Must offer thisNice to have but not essentialNot importantDon’t know / Not applicable[PN: OPTIONS DOWN THE SIDE UNDER ‘DOMESTIC’ & ‘ANOTHER COUNTRY’ NETS/HEADINGS. FIX ORDER OF NETS]DOMESTIC WEBSITES (retailers based in your country) [SHOW HEADER IN LINK] [PN: ROTATE LIST]Free shipping / free deliveryExpress delivery options (e.g. next day, 2-day etc.)Flexible delivery times (e.g. evening delivery, specified day/time slot)Free shipping for returns / free postage for returnsWEBSITES FROM ANOTHER COUNTRY [SHOW HEADER IN LINK] [PN: MATCH ORDER OF ‘DOMESTIC’ LIST][PN: SINGLE CODE PER ROW]
13PayPal usage for CB ahead of competition in majority of markets PayPal usage correlates with markets where eBay provides a good foundation.Payment method used for cross-border purchases (%)%North AmericaWestern EuropeNordicsCentral, Eastern EuropeMiddle EastLatin AmericaAsia PacificKey competitor is Visa or MasterCard or…NL = iDealAT = InvoicingCN = AlipayWhich payment cards / methods have you used for online transactions / purchases from websites from another country in the past 12 months?Base: Online cross border shoppers. Q. Which payment cards / methods have you used for online transactions / purchases from websites from another country in the past 12 months?
14Reasons for cross border payment method preference (%) Safety, protection, convenience key to cross border payment method preferenceReasons for cross border payment method preference (%)Safer way to payPurchase protectionMore convenient way to payPayment is processed quicklyAccepted by most retailersDon’t have to share my personal / financial details with sellerWell-known, trusted brandFaster checkoutNot charged commission/transaction fee on overseas purchasesHabitBetter currency conversion rateReceive rewards/cashbackBase: Cross border shoppers who have used more than one payment method in the past. N=4,670. Multi country average. Q. For what reasons is this your preferred payment method for online transactions/purchases from websites from another country?Q36c. For what reasons is this your preferred payment method for online transactions/purchases from websites from another country?