Internet powers cross-border shopping bonanza: PayPal

Jul 23, 2013
A study released on Monday showed that Internet-powered shopping across national borders has created "modern spice routes" holding wealth for local merchants who tap into the booming trend.

A study released on Monday showed that Internet-powered shopping across national borders has created "modern spice routes" holding wealth for local merchants who tap into the booming trend.

Hong Kong, Canada, Australia, Germany, China, Britain and the United States will see a combined total of $105 billion in "cross-border online shopping" this year and that figure should nearly triple to $307 billion in the next five years, according to Nielsen research commissioned by Internet financial transactions service PayPal.

"Traditionally, the small merchant was left out," PayPal president David Marcus said of local shops competing globally for customers.

"Here comes the Internet, and small can basically make the world their backyard market."

More than 25 percent of transactions handled by PayPal involve cross-border purchases, with the Silicon Valley-based service tending to matters such as currency differences, buyer satisfaction, and optimizing websites for smartphones, according to Marcus.

Of the markets studied for a report titled "Modern Spice Routes," the US was the most popular cross-border shopping destination, followed by Britain, China and Hong Kong.

China, Argentina, Russia, Brazil and Australia were listed among the hot locations for merchants to target exports.

Cross-border shoppers will spend $12.5 billion on clothing, shoes, and accessories this year, while $7.6 billion will be spent on health and beauty supplies, according to Nielsen.

"The scale of cross-border online shopping has never been mapped before and what is clear from this research is not just the current size of this market, but its massive potential for consumers to buy directly from merchants around the world," Marcus said.

"The message is simple: the emergence of these 'modern spice routes' is great news for economies and small businesses the world over."

Saving money and finding items unavailable locally were the most common reasons given for internationally online, according to the study.

Explore further: US companies increasingly fish for growth overseas

add to favorites email to friend print save as pdf

Related Stories

PayPal to expand in Asia after mobile app launch

Mar 16, 2012

PayPal Asia-Pacific chief Rupert Keeley said Friday the US company plans to expand in the region over the next 12 to 18 months, after it launched the region's first payments service for smartphones. ...

Battle commences for 'mobile money'

Feb 25, 2013

Global financial groups battled Monday to control the lucrative future of "mobile money", which will enable people to use a smartphone to go shopping instead of cash and credit cards.

Hong Kong's e-economy booming: Google

May 05, 2011

The Internet is expected to contribute around $18.8 billion -- 7.2 percent of the total -- to Hong Kong's economy by 2015, driven by a surge in mobile use and online shopping, a report for Google said.

Recommended for you

Amazon launches 3D printing store

3 hours ago

Amazon announced Monday the launch of an online store for 3D printed items to allow consumers to customize and personalize items like earrings, pendants, dolls and other objects.

Samsung delays Tizen smartphone sales launch

8 hours ago

Samsung Electronics said Monday it would postpone the roll-out of its new smartphone based on Tizen, a home-grown operating system aimed at breaking away from Google's Android system.

Chinese portal Sohu reports $45 million loss

11 hours ago

(AP)—Sohu.com Inc., operator of a popular Chinese Internet portal, said Monday it lost $45 million in the latest quarter while revenue rose 18 percent to $400 million.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

GregHitch
not rated yet Jul 23, 2013
Nice to see David Marcus is willing to talk about this but what about this totally secret move paypalhassecrets.blogspot.com. I can't believe paypal and eBay' board of directors including Katie Mitic, the director of Special Olympics, would secretly green light this and not even mention it to shareholders.