Payments provider PayU has distributed a survey that queried US consumers that claims there is a big opportunity for international merchants to capitalize on US consumer demand not being met domestically.
According to PayU:
- 48% of Americans who have bought online from retailers based abroad in the last
- 53% have purchased products from China over the past 12 months
- Beyond China, Americans have purchased products from Europe (33%), Canada (28%), Southeast Asia (21%), and Latin America (21%)
PayU’s research indicates that there are opportunities for international merchants to target US consumers.
PayU claims that among individuals who have not shopped online making purchases outside of the US, just 26% felt compelled to shop domestically, while 30% of this group indicated they believed they could get everything they need from domestic merchants.
The barriers are fairly obvious as shipping costs and complicated return processes can get in the way of international purchases. Not to mention same-day delivery, which is frequently available in the US from domestic online retailers.
The survey also claims that payment methods are a key factor for American consumers when it comes to purchasing from abroad, with 55% of Americans saying they would look elsewhere or not make the purchase at all if their preferred payment method was not available.
Additionally, 73% of respondents noted that they felt safer making purchases online if they recognized the brand of the Payment Service Provider.
Interest in utilizing Buy Now Pay Later (BNPL) is said to be relatively weak in the US market, with only one in 10 Americans who had bought from abroad in the past 12 months using the option.
Mario Shiliashki, PayU’s CEO of Global Payments, commented on the results of the survey:
“It is clear that the trend for shopping internationally is accelerating, even in well served markets like the US. This growing trend represents an ever more attractive opportunity for retailers to boost their growth by extending their business outside their home countries. To capitalise on this opportunity, it is important that merchants have the right technology partners to navigate the complex payments and logistics landscape in order to provide the best consumer shopping experience locally – one critical aspect of that is to optimise their ability to offer the most relevant payment methods in every market they expand to.”