In 2020, 7 in 10 people had already ordered a product at least once from a store outside their home country, according to a report by eShopWorld. Cross-border shopping is mainly the domain of younger generations, but it turns out that older internet users are also warming to this form of shopping. Shopping without age or territorial borders? This is the new normal for commerce in A.D. 2021.

What will commerce look like in the post-COVID world? In search of an answer to this question, eShopWorld (ESW), a company specializing in cross-border commerce, surveyed 22,000 consumers from 11 countries. The conclusions were included in the report Global Voices 2021: Cross-Border Insights.

The customer is waiting everywhere

The customer is waiting everywhere

In 2020, nearly 7 in 10 people (68%) ordered products from an online store located outside the buyer's home country – that is the key conclusion of the report.

– It is estimated that already every second person shopping online has ordered goods located in another country at least once in their life. During the lockdown, many people, encouraged by their first positive online shopping experiences, dared to go a step further and check out what "shopping without borders" has to offer – notes Aleksandra Szarmach, Chief Marketing & Sales Officer at Nethansy. – As data obtained by Business Insider shows, already one in four sellers listing their products on Amazon ships items abroad. Amazon's launch in Poland, and consequently its growing popularity and awareness, is an opportunity not only for consumers but above all for sellers.

Shopping without borders… of age

Shopping without borders… of age

Who is a fan of cross-border shopping? Looking at preferences and habits, ESW managed to identify several differences between generations.

The first group is the so-called digital natives. As the name suggests, these people most readily shop online, and the country where the store is located does not matter to them. These are consumers aged 25-34, belonging to two generations: younger Millennials and older representatives of Generation Z.

Buyers aged 25-34 also made up the most active group. Over the course of 12 months, one in three (33%) respondents in this group shopped 11 or more times. That is 1 percentage point more than in the 35-44 age group (32%) and 4 percentage points more compared with the 18-24 age group (29%).

How consumer habits changed during the pandemic

How consumer habits changed during the pandemic

Last year, more than $500 on cross-border e-shopping was most often spent by Millennials. At least that is what nearly one in two (47%) of them declare. Then there is a long, long gap, and Generation X. 27% of representatives of that generation spent at least half a thousand dollars on goods online. Among older generations – Z and Baby Boomers – the percentage spending $500 or more online is significantly lower and stands at 15% and 11%, respectively.

An obstacle course

An obstacle course

Young buyers are distinguished not only by "what" they buy but also by "how" they buy. While Baby Boomers and Generation X prefer credit card and PayPal payments, younger customers more often lean toward global payment systems and the "buy now, pay later" option. This signals how important it is becoming for sellers to offer a wide range of payment methods.

The biggest obstacle to making online purchases, according to buyers of every age, is concerns related to cost (41% of respondents) and delivery time (38%).

– According to an Offers.com survey, nearly half of respondents say they currently shop on impulse less often, and this has nothing to do with pleasure (48%). This attitude makes customers carefully browse the offer before making a purchase. A trusted partner who supports us with their credibility may prove to be worth its weight in gold – advises Aleksandra Szarmach of Nethansy and adds: – From the same report we also learn that since the beginning of the pandemic, three in ten (31%) respondents more readily choose cheaper products or look for goods offering an attractive price-to-quality ratio. Access to an international offer corresponds perfectly with this trend.

How to advertise so as not to discourage?

A study conducted by MarketingSherpa on two age groups: Millennials (18-34) and Boomers (over 65) indicates what users prefer when sellers want to inform them about their new products or promotions. Millennials are definitely more interested in receiving emails they can read on smartphones (53%), while only one in five seniors prefers this method of communication. The more mobile younger generation views the use of apps and the ads appearing in them more favorably. Although it must be admitted that advertisers face a headache here too, since only 10% of Millennials accept promotional messages appearing in their favorite apps, but that is still… 10% more than in the case of Boomers.

Meanwhile, ads sent via SMS are viewed favorably by 30% of younger people and 15% of seniors. – However, SMS notifications have recently had bad press. That is hardly surprising, because we constantly hear about attempted frauds. Unfortunately, seniors are the most susceptible to them; although they navigate the online environment better and better, they are still not as proficient as young people and are often irritated by additional distractors. That is why advertisers still want to reach Boomers in traditional ways – through television, radio, or print advertising – explains Wiktor Salamon, creator of Notipack, software that enables website administrators to send notifications to people browsing a given product or service online.

According to Salamon, sellers still have a lot of work ahead of them to convince customers of various types of notifications.

– Survey results show that even the younger generation has difficulty accepting ads. Notifications should appear intuitively, and the seller must anticipate the buyer's actions and, for example, place a widget in the right spot informing about how to get in touch. However, it cannot be intrusive, because then the buyer will lose interest in the product – emphasizes Salamon.

Summary

The eShopWorld (ESW) report "Global Voices 2021" indicates that in 2020, 68% of consumers made cross-border purchases, and the most active group are people aged 25-34. Millennials spend the most – one in two declares purchases worth more than $500. Older generations remain cautious, preferring traditional payment methods, but they too are entering e-commerce more and more boldly.

Experts point to growing awareness of cost and delivery time as the main barriers, as well as a decline in impulse purchases (48% of respondents). For sellers, offering diverse payment and communication methods is becoming crucial – younger generations accept emails and apps, but seniors remain loyal to television and SMS. Success requires a balanced, non-invasive approach.