The Omnichannel Strategy Fuelling Cross-border Commerce
Last updated on May 25th, 2018 at 08:43 am
Consumers are the real king in the world of cross-border commerce. They possess the power of choice. They have the freedom to choose whether to shop online directly from a retail website or from the online marketplace. They have the right to choose their preference over the multiple online channels. As per latest research, the phenomenon of “Online Local. In-store Global” is one of the driving elements of cross-border commerce. Many shoppers while traveling abroad often discover the brands and visit their offline stores. Later, they continue to purchase products from the brand store online.
Let us understand why it is essential to implement the omnichannel strategy for cross-border commerce.
Getting the payment options right
The payment options for online shopping vary from country to country. There is no widely accepted payment option used by a majority of the cross-border shoppers. It is very crucial to choose the payment options. This increases the chances of increasing significant number of online consumers. There are important factors the online shoppers and merchants should consider while selecting the payment options. Some factors are
Value of purchase
The total cost of purchase
Purchase protection plan
As per a survey, credit cards were the most preferred mode of payment. Second to the list were the E-wallets that allow the consumers to store and access multiple payment options at one go.
Direct sales vs online marketplaces
Nearly, half of the consumers trust shopping through online marketplaces. They do most of their online shopping through marketplaces – be it local or cross-border. In top countries like Japan, China, Germany, and India, the shoppers make their most of the purchases with the cross-border marketplaces. As per reports, 75% of the global shoppers purchase their favorite brands and products from the retailer’s direct site.
While in some countries like Australia and Canada, the trend is direct-to-retail sales. Thus, the online retailers need to consider a broader approach to increasing their online market presence. For this, they have to accept multiple channels to reach a large number of global shoppers and increase their sales.
Huge Interest in cross-border commerce
The research suggests that cross-border commerce prevails to be the first choice among the consumers globally. Consumers often make about 95% of their domestic purchases online. However, more than 66% of the consumers have also contributed to the cross-border purchases. Countries that have the highest number of cross-border shoppers are Australia, Hong Kong, and Singapore. While there are still some countries like Japan and U.S. which are evolving and making their online presence stronger in the cross-border commerce.
Shipping and returns
Online shipping and returns are a major concern for both merchants and the consumers. There are certain elements that merchants always face challenges. They are
Shipping the right products
Order tracking and delivery
Transparent return policy
Proper custom duty and taxes
This issue becomes a more challenging task during the holiday season as most of the consumers opt for online and cross-border shopping. As per reports, India, Singapore, Hong Kong and China are among those countries with a large number of consumers opting for cross-border purchases. During holiday seasons, the consumer rush is more and thus the merchants and retailers experience a lot of challenges. There are constant efforts to bring improvements in giving the consumers a seamless shopping experience.
In order to grow the online presence in the cross-border market and strategize the omnichannel approach, consider the following steps:
Integrate your findings
Segment your audience
Know your customers
Prioritize the online channels and the devices
Focus on customer support
Measure your efforts.
Create a premium customer experience
Every cross-border marketer should engage the audience in a value-driven way to empower the cross-channel integrations. Thus, to provide a seamless and better customer experience, it is necessary to give your customers the first priority. Additionally, it is essential to analyze the sales in the marketplace and choose the right payment options. This increases your brand awareness and loyalty in the omnichannel cross-border market.