How can your business leverage the incoming surge in cross-border spending?

(Source: Airwallex)

Did you know that international e-commerce spending is expected to surge this year?

According to Aussie-born global fintech Airwallex – which last month launched its State of Cross-border eCommerce: Key Trends of 2024 Report – a whopping 54 per cent of global consumers are expected to increase their international online spending over the next six to 12 months. 

It’s the latest signal that a major opportunity is coming for retailers, reinforcing estimates that the cross-border e-commerce market will reach US$7.9 trillion by 2030. Currently, international revenue from Australian merchants amounts to roughly AD$18 billion, making up 29 per cent of transactions from the industry. There’s room for growth – and an appetite from international consumers to fuel it.

So, how can Australian e-commerce companies make sure that they get their piece of the pie? 

Conquering cart abandonment risks

Presenting a robust and dynamic purchase experience is crucial, and this starts with displaying prices in the customer’s home currency. According to Airwallex’s report, this was one of the biggest influencing factors to purchase, with 93 per cent of consumers claiming that this impacts their decision to follow through at the checkout.

Another factor that can trigger mass cart abandonments is a lack of payment options. Seventy-seven per cent of consumers say they are likely to ditch their cart if their preferred payment method is not available. This means if you’re not offering local payment methods like Alipay, WeChat Pay, and Grab Pay – or you are limiting the use of digital wallets such as Apple Pay and Google Pay – you could be missing out on accessing huge new customer bases.

Creating perfect purchasing pathways

Purchasing pathways are also evolving, and e-commerce merchants need to stay ahead of the curve. The ability to purchase products and services from social media platforms is now essential, with 59 per cent of consumers likely to make online purchases from international merchants through social media platforms. Consumers in Australia’s key markets of China, Hong Kong and Singapore were especially inclined to use social commerce.

Within social media, influencers are more influential than ever. No longer just helpful for product visibility, influencers are now informing brand trust. Three in four consumers say endorsement from international influencers is likely to impact their trust in overseas merchants. Considering the purchase pathways from influencer channels can help you maximise the opportunities that they present.

Leveraging every e-commerce consumer trend could be a full-time job in itself. But e-commerce business owners don’t need to go it alone. Airwallex helps thousands of Australian retailers tackle the common challenges of international financial operations. Trusted by leading merchants like July and Vinomofo, Airwallex is constantly innovating its feature suite in line with business needs.

“Operating in a cross-border marketplace is no excuse for falling short of customer expectations,” says Luke Latham, Airwallex’s managing director, ANZ. “Merchants should invest in technology that supports their global ambitions and upholds the best possible, globally consistent customer experience. We’re committed to supporting merchants as they navigate these complexities of global expansion.

“Our powerful global infrastructure removes the historical barriers associated with cross-border growth. Our seamless UX is underpinned by the world’s most comprehensive, cost-effective and efficient money movement network in the world – with tools that can service local payment acceptance, transaction processing, FX conversion and digital wallets among others – you don’t need to look any further to accelerate your global ambitions”

To understand the full scope of essential trends fuelling e-commerce growth this year, download the State of Cross-border eCommerce: Key Trends of 2024 Report. To get started with Airwallex, sign up for a free account now.