ATLANTA, Aug. 30, 2019 (GLOBE NEWSWIRE) -- 2Checkout, the leading all-in-one monetization platform for global businesses, today released its 2019 insights into global online shopper behavior. These results are based on the Online Shopper Behavior Survey conducted by 2Checkout between May and July 2019, with more than 1,000 respondents from 130 countries participating.
Key Findings:
- Data privacy and security is a top priority for 76% of respondents;
- Localization is still valued by global customers, with 69% of shoppers desiring to pay with their preferred payment method, as well as appreciating pricing in their local currency (62%) and websites translated in their native language (61%); and
- Growth in subscription sales continues with an increasing preference for automatic renewals.
Significant trends from the report include:
Purchase Frequency and Preferred Products – The frequency of purchases is at a high level with 17 percent reporting making online purchases once a week or more often and 26 percent reporting making online purchases at least once or twice a month.
Amongst digital goods, the most popular ones are software products, bought by 53 percent of respondents, followed by mobile apps (33 percent), with eBooks, films or music and concert tickets next, with 20, 18 and 18 percentage points, respectively. In the physical goods category, computers and electronics took first ranking, purchased by 36 percent of respondents, followed closely by clothing and accessories (33 percent), and mobile phones and tablets (30 percent).
Subscription Preferences – Entertainment streaming services are the kings of the subscription category, purchased by 36 percent of respondents, followed by subscription-based software (e.g. antivirus software, multimedia applications, etc.) at 33 percent. Subscription-based retail products (such as One Dollar Shave Club, food delivery or others), were mentioned by 12 percent of respondents, and we expect this category to develop in the coming years.
There is a strong preference toward manual subscription renewals versus automatic renewals (61 vs. 39 percent), yet we see a growing trend of preference for automatic renewals compared to 2018, when only 21 percent of survey respondents tilted towards this option. The convenience of auto-renewals and the increased proliferation of subscription services with automatic renewal options are increasing the numbers.
Preferred Method to Contact Support – Email remains the top channel for reaching support, followed by online chat and toll-free numbers, with 62, 39 and 35 percent of respondents having ticked these boxes, respectively. Social media remains the least preferred, probably due to the lack of privacy.
Cart Recovery Incentives – Shopping cart abandonment is triggered mostly by customers deciding they don’t really need the product (39 percent), an aspect more difficult to influence by the online store, especially at the final stage of the purchasing process. However, the second most frequent reason for cart abandonment is “unexpected extra fees (e.g. VAT, delivery fees, etc.) added at checkout,” which was mentioned by 37 percent of respondents – an aspect that merchants can correct through more transparency and clearer calculations during the purchasing process. According to respondents, cart abandonment can be curbed by offering discounts (preferred by 38 percent) or by simply sending reminders (effective for 34 percent).
Payment Preferences – Preferred payment methods are consistent with previous years, with debit and credit cards and PayPal leading the charts, with 63 and 39 percent of respondents using these methods, respectively. Mobile payments and direct debit are both at similar levels with the 2018 survey, at 12 and 10 percent respectively. Cash on delivery is still widely used, with 16 percent of global respondents having used this payment method. Desktop remains the top choice as a payment channel, with 60 percent of respondents preferring to make the actual payment on their desktop, showing a decline from the 2018 survey, which was 82 percent. This compares to mobile, which was preferred by 33 percent, an increase of 4 percentage points compared to the 2018 2Checkout survey.
One-time fees are preferred by 67 percent of respondents; however, in certain countries there is a higher propensity towards installments. For example, in Brazil, 40 percent of respondents prefer to split payments and use installments. This is expected, given the popularity of cards with installments in that country.
Cross-border Commerce – Global online shopping continues to rise, with 72 percent of respondents having completed a cross-border purchase. Lack of availability in the home market drove 51 percent of shoppers to place international orders, closely followed by an attraction towards lower prices, as mentioned by 49 percent of respondents. Free international delivery is a big plus and the third most important reason why shoppers order online from other countries. Digital goods formed the bulk of cross-border purchases, with 75 percent of shoppers who purchased digital products also buying internationally.
Localization is highly valued, with acceptance of preferred payment methods, pricing in the local currency and websites translated in the local language mentioned as very important by 69, 62 and 61 percent of respondents, respectively.
“Online shopper’s increased interest regarding data privacy and security is an ongoing trend, as evidenced in the findings of our Global Online Shopper Behavior Survey. This is yet another reason why merchants need to carefully select their digital commerce partners and pay closer attention to compliance and industry standards,” stated Erich Litch, President and Chief Operating Officer at 2Checkout. “At the same time, shoppers are purchasing more goods and services online as well as subscription-based offerings from their country or elsewhere. This is very much in line with our product strategy as we continue to enhance our monetization platform to support global commerce and subscription sales with a local approach,” added Litch.
2Checkout is committed to helping merchants stay on top of industry trends and better understand end-customers’ needs and preferences and is constantly supporting clients with global expertise, knowledge and market research analysis. For more insight into 2Checkout's Survey Results, please view the 2019 Global Online Shopper Behavior infographic.
About 2Checkout
2Checkout is the leading all-in-one monetization platform for global businesses. It was built to help clients drive sales growth across channels and increase market share by simplifying the complexities of modern commerce like global payments, subscription billing, merchandising, taxes, compliance and risk, so they stay focused on innovating their products and delivering exceptional customer experiences.
Additional information at www.2checkout.com