10 Key Statistics on Cross-Border Trade All Retailers Should Know

10 Key Statistics on Cross-Border Trade All Retailers Should Know

In the evolving landscape of global commerce, cross-border trade remains a vital growth avenue for retailers. Staying informed with the latest data is essential for navigating this dynamic market. Here are ten critical statistics that highlight the trends and opportunities in cross-border trade.

1. Cross-Border E-commerce Market Size:

Global ecommerce sales are forecast to hit $6.3 trillion in 2024. Online sales are expected to continue rising and take a larger piece of the retail pie. Shopify Global eCommerce Sales Growth Report

2. Consumer Buying Behavior:

20.1% of retail purchases are expected to take place online in 2024. Each year, fewer and fewer people are shopping in physical stores. By 2027, this number will reach 23%. Forbes Advisor

3. Global Shoppers:

52% of online shoppers report shopping internationally. With the ease of international shipping and the simplicity of online orders, choosing a product from overseas is not a big concern for online shoppers. Forbes Advisor via Statista

4. Online Shopping Cart Abandonment:

The online shopping cart abandonment rate average is 70%, based on various studies and this number has held relatively steady since about 2014. Factors include guest checkout options, shipping costs and turnaround times. HotJar

5. Social Media Shopping:

Around one-third (or approximately 106 million people) of the United States shops online via social media, but globally consumers spent $992 billion USD via social media commerce in 2022. Facebook is the largest social media platform for commerce transactions. Forbes Advisor via Statista

6. Consumers are quick to return items:

Return rate varies significantly depending on the sales sector and the period but at least 30% of all products ordered online are returned. This number increases for items like clothing, shoes and electronics. ShippyPro

7. Returns are costing retailers:

Processing returns means higher costs for retailers. 20% of merchants raised the price of their items to cover the cost of returns. ShippyPro

8. Consumers are more frivolous online:

30% of online shoppers actively seek ways to overspend and return the products they don’t want. recent statistics show that 19% of people admitted to purchasing multiple versions of the same product and only made up their minds when they arrived. eCommerce Fastlane

9. Returns can be an unpredictable market:

On average, ecommerce sales see an 18.1% return rate, while physical stores experience returns of only 8-10%. Interestingly, the return rate for expensive products is even higher than average, at a whopping 50%. And during the holiday seasons, rates can reach as high as 30%. January is the most popular month for returns.

10. Fraudulent Claims:

With the rate of returns growing, so are the attempts at fraud. Last year, 11% of returns were fraudulent with returns representing a $212 billion USD market. Those false claims add up for retailers.

Companies - both retailers and e-Commerce platforms - can’t ignore the growing presence of e-Commerce driven by digital culture and social media influencers. More and more consumers are shopping online, but this is also changing their buying habits and also increasing the demand for returned items.

Here is a quick checklist for global retailers facing the heat of returns: Are you seeing your rate of returns increase? What does it cost you per returned item to process the request? Do you fully understand the customs regulations and compliance issues? Are you paying customs duties to import and export items during returns?

Trade Duty Refund can help you understand some of these steps and support you in claiming back customs duties from processing returned items. Set up a discovery call to get started!