Thursday, December 19, 2019

Cross-border shopping to benefit from seasonal Ecommerce spike according to PayPal




The holiday shopping season is in full swing, bringing with it an ecommerce frenzy. The spike in online purchases during this time of the year also offers a unique opportunity for Filipino retailers: cross border shopping.

“There is a definitely a real opportunity for Filipino entrepreneurs to connect with global consumers. Chinese consumers are particularly promising, given the Philippines' improved bilateral relations with the world’s second largest economy,” said Nagesh Devata, General Manager for Cross Border Trade, Asia Pacific, PayPal.

According to PayPal’s Cross-Border Consumer Research in 2018, there is a healthy appetite for ecommerce in the Asia Pacific region, with 48 percent of consumers shopping cross-border.[1]Last year, PayPal reported a record-breaking USD 1 billion+ in mobile payment volume for the first time ever on Black Friday and Cyber Monday.[2]

For many traditional brick-and-mortar retailers, embracing an omni-channel strategy that includes ecommerce has paved the way for more sales opportunities, especially during this time of year.

“The festive season, stretching from the end of November with Black Friday through to February with Chinese New Year, typically marks a critical time for small retailers to maximize their business opportunities and boost sales,” said Devata. “For some, these months can generate the profits needed to cover operations for the year.”

The world has become much smaller as digital commerce platforms like PayPal enable merchants and consumers from all over the world do business with one other, to take advantage of opportunities by connecting them with global consumers, allowing SMEs and micro enterprises more opportunities to thrive.

With many holiday purchases now being done online and global consumers opting to shop cross-border, PayPal shares three tips on how retailers can prepare their businesses for seasonal success:

1.      Plan for mobile– Mobile devices have become the preferred platform for shopping due to their convenience. While majority of cross-border purchases in 2018 were still made via desktop, laptop or notebook, the percentage of purchases on mobile is growing. In fact, 32 percent of all cross-border purchases in Asia Pacific was done on mobile.[3]

2.      Check your website security– Research by HubSpot has found that 82 percent of online users avoid sites flagged as ‘not secure’ by their browser. This makes it essential for businesses to strengthen their website security and ensure that their ecommerce pages are compliant with the local laws of their target markets.[4]

3.      Offer more payment optionsAccording to PayPal, many consumers will cancel transactions if their preferred or trusted form of payment is unavailable. The 2018 cross-border study shows that two-thirds of online shoppers will only use a payment option or brand they recognize when making a purchase.[5]

By knowing how to effectively use online and digital channels to sell, small retailers and SMEs can make the most out of the festive season and stay ahead of the competition.



[1]PayPalCross-Border Consumer Research 2018 Report
[3] PayPalCross-Border Consumer Research 2018 Report
[4] Research (2017), SSL matters to consumers, https://research.hubspot.com/charts/ssl-matters
[5]PayPalCross-Border Consumer Research 2018 Report

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