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E-commerce success: Overcoming customers' fear of cross-border shopping

Published
9/17/2024
Author
Expandeco
Reading in
11 minute

Recent years have brought us the growth of e-commerce brands. Online stores appeal to decision-makers, tempting partners who have access to product offerings as well as competitive prices. Even though the global e-commerce market is doing pretty well, research is emerging. Many consumers have concerns as well as a lack of confidence when it comes to pet shopping abroad.

On a daily basis, our solutions include customer support, which includes first-hand information about license issues that come with us. Additionally, we keep up to date with market research in the international arena, thanks to the use of e-commerce tools to increase customer trust in their brands outside their home country. We delved into the motivations and concerns that go into their purchasing decisions. Most importantly, the actions that sellers can trigger to convert customers to their storefront if the purchasing process is successful.

Why do customers buy abroad at all?

By far the most important reason given by customers is the better price of the product than in domestic stores. This motivates over 40% of them to buy cross-border. Every third customer considers that the advantage of foreign purchases is obtaining a product that is rare on the local market - or it's about purchasing products from brands that are not available in the home country.

Effective marketing of these stores is also important. One third of customers were convinced to make a purchase by the possibility of using a discount code they received. They used these codes in a foreign store or marketplace. Others were driven by the desire to buy a product they had previously seen on social media. For 16% of consumers, the advantage of shopping abroad is the possibility of receiving better quality products than on the local market. Price generally proves to be the biggest lure for consumers.

However, for 16-24-year-olds, the biggest incentive is to get items they've seen on social media. More than half of consumers agree that rising prices in their country mean they are more likely to look for products that may be cheaper abroad. On the other hand, if prices in an online store abroad are drastically lower than in the country. It raises doubts about the quality of the product.

Concerns about placing orders from abroad

The most important reason for half of consumers is the inability to easily return the product and the low quality of the ordered product or its non-originality. 4 out of 10 customers are also afraid that their order will arrive late or not at all and are afraid that their payment details provided when placing the order may be stolen.

One common 'surprise', especially when making purchases from outside the European Union, is the occurrence of additional fees. These can include taxes, customs duties, or surcharges for processing orders from other continents. Such fees can catch buyers off guard and affect the total cost of their purchases significantly.

Regardless of the product chosen, one third of customers are afraid that the product will be damaged during transport, given the numerous reloading points over long distances that the parcel must travel. It is worth noting that concerns about the possibility of returning a product are higher among women than among men, but also among older consumers than among younger ones.

What discourages buyers on the store's website?


Apart from the prevailing aspect, which is the suspected low prices compared to the local market, customers are discouraged by the lack of precise delivery times to their country. They are also put off by the low quality of the translated content on the website.

"Professional translation is crucial, especially for the most important elements of the website, such as the home page, terms and conditions, frequently asked questions and descriptions of bestsellers."

Andrea Stanko, Head of Localization at Expandeco

Although difficult to imagine, in some cross-border stores product prices are still not given in local currency - this discourages as many as one third of potential consumers from placing an order. An important aspect, regardless of the country, that customers indicate as important in the purchasing process is that the store provides the payment method that they normally choose in the case of local purchases.

"In countries such as Romania or Bulgaria, despite developed electronic payments, some customers still prefer traditional bank transfers. They expect a local account number to avoid commissions on international transactions. At Expandeco, we help online stores set up local bank accounts in the countries of sale, which increases customer confidence and eliminates concerns about fees and currency conversions, as well as speeds up the time of posting funds."

Natalia Leonard, Sales Account Manager at Expandeco

Building trust in foreign stores

Approximately 70% of customers state that clear information regarding return possibilities is the most important factor. Additionally, the absence of extra fees related to the order is also crucial. An extremely important aspect for 2/3 of them is the local customer service telephone number provided on the store's website.

"Recently, we had a case from the French market in which our client from the furniture industry had only a Polish telephone number and a Polish return address on the online store's website. Despite the high traffic on the website, this did not translate into the number of orders. By changing these two parameters to local ones, the customer noticed a sudden increase in the number of orders by 17% already during the first month."

Bartłomiej Waluś, Head of Sales at Expandeco Poland

Also, over 60% of customers indicate positive user reviews from the local market as a factor increasing the chance of placing an order in an international store. Here, it is also worth paying attention to the store function, which shows real photos of people who made a purchase in the customer's country. Due to the constant activity of society on social media, it's important for the store to be active and positively perceived on these platforms.

Additionally, cooperation with influencers should be considered, as their opinions influence purchasing decisions for 40% of customers. Trust plays a key role in cross-border e-commerce, and the first purchasing experience is the most important. More than 70% of consumers agreed that if their first experience shopping online in another country was successful, they would likely consider shopping there again. However, the same percentage of customers also agreed that they were unlikely to make another purchase from e-shops in other countries if they had a poor shopping experience. This is compared to their likelihood of shopping again from online stores in their home country.

The role of the environment and social aspects in international purchasing

Environmental and social factors continue to play a role in consumers' attitudes towards cross-border e-commerce. Two-thirds of customers say they would not make a purchase from an online store in another country if they knew they were linked to factories with forced labour or poor working conditions. Half of them also agreed that they were concerned about ordering products online from distant destinations due to the environmental impact of transportation.

 

Checklist: The key to success in cross-border sales

✅ Recognize consumer concerns: Address customer skepticism and less understanding attitudes toward cross-border purchases.
✅ Respond to specific concerns: Respond appropriately to the most common issues related to international shopping.
✅ Adapt your store to your target market: Go beyond standard currency conversions and professional content translations.
✅ Run test orders: Verify email accuracy and user experience.
✅ Check your local payment and delivery preferences: Adjust your payment and delivery methods to local market standards.
✅ Take cultural customs into account: Optimize banners, ads and product photos for local customs.
✅ Adjust activities to your calendar: Synchronize store activities with local holidays and events.

At Expandeco, we have ready-made solutions for entrepreneurs expanding their sales abroad. Tell us about your business – our team is ready to find the best way to locate your online store in the market you choose.

Final overview of regional preferences & challenges

And what does it look like in the individual countries where our customer support teams work on a daily basis?

Slovenia

🇸🇮 Key to customer satisfaction and competitiveness of online stores.
🇸🇮 Fast order fulfillment is very important.
🇸🇮 Correct spelling and grammar of messages.
🇸🇮 Positive reviews are important.
🇸🇮 Popularity of cash on delivery.

Romania

🇷🇴 An important factor in the evaluation of online stores.
🇷🇴 Price competitiveness influences purchasing decisions.
🇷🇴 High quality and speed of problem resolution.
🇷🇴 Clear cash on delivery payment terms.
🇷🇴 Transparency in the process of returns and exchange of goods.

Bulgaria

🇧🇬 Preference for cash on delivery.
🇧🇬 High linguistic quality of customer service.
🇧🇬 Fast delivery builds customer loyalty.
🇧🇬 Flexibility in the returns process is important.

Croatia

🇭🇷 Competitive pricing is key to purchasing decisions.
🇭🇷 Punctual delivery of orders.
🇭🇷 Positive opinions from other customers.
🇭🇷 Important for consumer satisfaction.
🇭🇷 Variety of options including cash on delivery.

Italy

🇮🇹 Preference for cash on delivery.
🇮🇹 Avoiding misleading delivery time information on websites.
🇮🇹 Reliability regarding actual delivery time.

Germany and Austria

🇩🇪 High quality and transparency of terms and conditions.
🇩🇪 Preference for PayPal or post-delivery payment against invoice.
🇩🇪 Hassle-free ability to return purchased goods.
🇩🇪 Presence of clear contact details and correctly completed Imprint.

Hungary

🇭🇺 Preference for cash on delivery.
🇭🇺 Fast delivery is important.
🇭🇺 The online store should adapt to the individual needs of consumers.

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