E-commerce and Consumer Confidence

Consumer Confidence and Cross-Border Sales

The goal of any successful business is to provide benefits to customers. Key to improve customer experience and satisfaction is understanding the needs of your customers. Start by analyzing the data of your customers, current markets and find out the factors that create satisfaction and loyalty among your customers.

In establishing growth in cross-border sales, online retailer should keep an eye on:

  • Consumer confidence,
  • Online purchasing trends,
  • Delivery issues and
  • Known cross-border obstacles.

Consumer confidence in e-commerce

According to Consumer Conditions Scoreboard 2017, there was increase in consumer confidence for cross-border purchasing in 2016. For the first time, more than a half of the consumers (57.8) were confident in shopping for goods and services from vendors based in another EU country. There has been a dramatic rise from 21.1% 2014, while domestic online shopping sees 72.4% of confidence rate, up 12.4 % compared to 2014.

The United Kingdom, Ireland, Germany and Austria are countries having the highest level of consumer confidence, which is all over 84% in term of domestic buying. This pattern happens again for cross-border online shopping, the United Kingdom leads the ranking with 77%, following by Ireland (76%), Austria (75.6%), and Luxembourg (75%).

Confident rate strongly correlates with the amount of internet usage, level of education whereas age matter seems to impact negatively on this rate. Vulnerable consumers are less confident in shopping online, and men tend to be more confident than women.

Consumer online purchases

In 2016, up to 55% of population admitted purchasing online in previous 12 months. 45.3% of them declared shopping online in the last 3 months and spent 100 to 499 euros. This proportion keeps increasing when consumer confidence is rising year by year.

Age, education, income and employment status have a great impact on online purchases. The more education, income, and younger the age, the more likely they would prefer to shop online. Clothes and sports goods are seen as the most popular goods in online shopping, with 33.9%, followed by household goods (24.2%), and holiday accommodation (22.9%).

Delivery issues

Late delivery is seen as the most common issue faced by the online shopper (25.6% of shoppers complaining compared to 38.1% in 2014). Damaged and wrong delivery (12.1%) are also experienced by e-shoppers, while no delivery is less frequently, only 6.6%. Domestic delivery seems to face more complaints from consumers than cross-border delivery. This is because the amount of domestic deliveries is still far higher than cross-border deliveries.

On average for domestic delivery in EU, 31.4% of buyers have problems with delivery. The proportion was highest in Romania (49%), Poland (48.9%) and the Netherlands (45.4%), the lowest in Luxembourg (18.1%), Austria (19.8%) and France (21.4%). In term of cross-border delivery, the highest incidence was reported in Malta (66.7%), Latvia (43.3%), and Portugal (41.3) and the lowest rate in France (8.8%), the UK (11.3%) and Germany (12.1). In comparison to 2014, this rate decreases 5.8% on average.

Cross-border eCommerce obstacles

There are still one out of four online shoppers experiencing barriers in cross-border purchasing. The most common barrios to consider when reaching new markets are payment methods and delivery issues.

Payment is the most common issue which holds consumers back from buying online cross-border. 12.8% of online shoppers stated their preferred payment is not accepted by vendors. Each country has a different kind of preferred payment methods. In the Netherlands, IDEAL is a must type of payment, while in Denmark, Norway, Spain the most popular payments are debit/credit card, online banking is the most preferred in Finland and cash-on-delivery (COD) seems to be preferred by Romanian, Hungarian, and Croatian.

Delivery and redirection to another site with different prices are also among the problems and challenges for cross-border online purchasers, with 10.1% consumers complaining vendor refuses to deliver to their country. It is now apparent that wide range of delivery options is significant for consumer satisfaction and loyalty. Customizing suitable delivery method, time and cost to separate countries and regions is the best way for sellers to win consumer and outpace your competitors.

Why not start cross-border sales now?

Is your online store shipping cross-border? Online Store markets are rapidly developing and with OGOship you can reach new markets easily and with minimum risk.

OGOShip is easy and flexible logistics solution for growing online stores. We have a strong desire to bring our experience and knowledge in e-commerce logistics to help you generate growth.

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More information on OGOship international shipments

More information on Consumer Conditions Scoreboard

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