Visa Global Merchant eCommerce Study shows 87 percent of eCommerce leaders view foreign online sales as top growth opportunity, yet majority of respondents doubt their ability to maximize international sales
SAN FRANCISCO–(BUSINESS WIRE)–Online businesses see a world of opportunity for cross-border sales and executives are ready to take action. According to The Visa Global Merchant eCommerce Study (Visa GME Study), highlights of which were released today by Visa (NYSE: V), eCommerce leaders globally view international expansion and finding new cross-border customers as critical to driving growth, particularly heading into the prime holiday shopping period. A vast majority of all eCommerce leaders surveyed (87 percent) believe expanding cross-border is one of their company’s biggest growth opportunities in the years ahead.
Today, two in three businesses (66 percent) that sell online are already selling cross-border. These sales account for nearly a third (31 percent) of those business’ revenue. Even with the significant revenue from cross-border sales, more than half (51 percent) of companies who already sell to international customers need help to optimize their international online sales.
“The data is clear; cross-border is a major growth opportunity. But it’s not easy, especially for small businesses,” said Suzan Kereere, global head of merchant sales and acquiring, Visa. “As a global platform that sees millions of transactions daily, Visa helps merchants find new customers, verify their customers’ digital identities, and create secure, seamless experiences.”
End of Year Holidays Mean Sales Worldwide
With the end of the year holiday season accounting for more than a quarter of annual revenues for the vast majority of businesses surveyed (86 percent), this peak time is critical for eCommerce merchants around the world. The Visa GME Study also revealed eCommerce leaders remain bullish about penetrating new markets to remain competitive during this key period.
Despite the opportunity, some expressed concerns about a range of factors. Looking at the 2019 holiday season specifically, increased competition is considered to be the greatest risk by more than half (52 percent) of the eCommerce leaders surveyed. Other global events are also a factor; trade policy is cited most frequently by U.S. (34 percent) and Chinese (54 percent) leaders, while uncertainty in Europe is a concern for a clear majority (64 percent) of UK leaders.
“No two retailers, regions, or consumers are the same. So it is critical that merchants understand the landscape. Data is at the core of that,” said Kereere. ”Merchants need to understand who their current and prospective customers are and where they are coming from. Then tailor their value prop to those specific needs. Visa can help them do this.”
The full study, which will be issued in January 2020, dives into merchant attitudes, behaviors and perceptions of cross-border eCommerce for 10 global markets. Additional key findings include:
- Seamless Experience: Whether purchasing goods domestically or internationally, customers want a similar experience. Leaders cite the most important factors as: quick delivery (44 percent), easy checkout (41 percent) and convenient payment methods (41 percent).
- New Markets: Two in three (66 percent) of businesses that do not sell cross-border plan to do so in the near future, with 90 percent eyeing the next three years.
- Buckle Up: The international expansion journey can be a daunting venture. A vast majority of those who haven’t expanded internationally (87 percent) haven’t even made attempts to do so. Top challenges cited are accepting and processing foreign transactions (37 percent) and shipping issues (42 percent).
About Visa Global Merchant eCommerce Study (GME Study) 2019
The Visa Global Merchant eCommerce Study (GME Study) analyzed responses of 1,000 C-level executives or business owners who work at companies with eCommerce capabilities across 10 global markets: Australia, Canada, China/Hong Kong, France, Germany, Mexico, Singapore, Spain, United Kingdom and United States. The Visa GME Study is part of Visa’s continued commitment to helping industry players in their pursuit of developing the cross-border eCommerce ecosystem. The Visa GME Study was conducted in conjunction with research and business intelligence firm Wakefield Research in July/August 2019.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/aboutvisa, and @VisaNews.