mcommerce report · respondents towards mobile commerce understanding that we are going through a...

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mCommerce Report

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PayPal is aiming to become an authority on mobile commerce globally

©2019 PayPal Inc. Confidential and proprietary.

2

The goal is to position PayPal as an authority on Mobile

Commerce, building credibility gained from processing billions

of mobile transactions per annum globally.

These 2 separate surveys are designed to gain insight into 3

main areas:

• Payment behaviours and acceptance

• Drivers and barriers to mobile commerce

• Understand readiness of consumers and business respondents towards mobile commerce

Understanding that we are going through a commerce

revolution, PayPal in partnership with Ipsos,

conducted an 11 market survey with approximately 22,000

consumers and 4,600 business respondents to examine how

people shop online.

Mobile Commerce Research 2019

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Empowered Consumer 1

Fraud & Security2

Cross-Border

Commerce

Social Commerce

Mobile shopper drivers and

barriers

Consumer Payment Behaviour

Research methodology

3

This study was conducted across 11 markets and approx. 22,000 consumers, 4,602 business respondents global average.

Online survey

Global Fieldwork: 23rd July and 25th August 2019

20 minute questionnaire

Respondents recruited from online panels

Representative of the online population or representative of online smartphone owners

Fieldwork Sample, per market

This research was carried out to the international quality standard for market research, ISO 20252:2012

Australia data weighted to replicate previous study

Consumer – 11 markets 2000 interviews per market

Business - 11 markets (300-500 interviews per market) Business influencers or decision makers who sell or take payments online to Consumers

Questionnaire

Consumer

Screening

1.Empowered Consumer questions only asked in UK, Australia, Germany and USA2. Fraud & Security questions only asked in Brazil and Mexico

©2019 PayPal Inc. Confidential and proprietary.

Empowered Consumer 1

Fraud & Security2

In-store mobile

commerce

Social Commerce

Mobile app compatibility and

attitudes

Business sales and payment acceptance

Consumer

Screening

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Mobile Commerce in India

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Mobile Commerce

88% of consumer respondents use mobile devices for purchases or payments online

81% of business respondents say they are ‘mobile optimised’

Rs 10,000 is the average online mobile spend per month

83% of mobile shoppers pay/purchase via mobile at least weekly

51% of online sales are via mobile device according to business respondents

Social Commerce & Apps

57% of consumer respondents have purchased via social media in the past 6 months

62% of business respondents sell via social media

98% mobile shoppers pay or purchase via apps

72% of mobile shoppers pay via app at least weekly

Cross Border

54% of online shoppers participating shop cross-border

88% of business respondents tell us they sell online internationally

47% of sales volume comes from international customers on average according to business

respondents

Mobile Commerce At-A-Glance 5

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Mobile Commerce Adoption

© 2019 PayPal Inc. Confidential and proprietary.

81% of Indian business

respondents areoptimised to take mobile payments vs the 63% global

average

51% of online sales volume is via mobile devices in

India vs 39% global average

70% of Indian consumers prefer to purchase/ pay

using mobile devices vs 43% global average

CONSUMER ONLINE MOBILE PAYMENTS: CURRENT DEVICE USE

CQ1. Thinking about when you make a purchase or payment online, which, if any, of the following devices do you prefer to use?Base: All respondents (2000)

MQ1. Which, if any, of the following statements apply to your business? Base: All business respondents (302)

MQ4. Approximately what percentage of your online sales are made via a mobile device (smartphone tablet or other mobile device)? Base: All business respondents (302)

MQ5. Which, if any, of the following are priorities for your business / organisation over the next 12 months?Base: All business respondents (302)

CQ1. Thinking about when you make a purchase or payment online, which, if any, of the following devices do you currently use?Base: All respondents (2000), Male (1342), Female (658), Gen Z (658), Gen Y (865), Gen X (400), Boomer (70), Older (7)

6


respondents have mobile

optimisation as a priority in the

next 12 months

TOTAL INDIA

TOTAL GLOBAL

GENDER GENERATION

M F Gen Z (18-24)

Gen Y (25-36)

Gen X (37-51)

Boomer

(52-66)

Older (67+)

Smartphone 87% 66% 87% 86% 88% 88% 85% 79% 71%

Tablet 20% 23% 19% 22% 14% 23% 24% 17% 29%

Total Mobile 88% 71% 89% 88% 89% 90% 85% 80% 71%

Mobile commerce is preferred by 7 in 10 consumer respondents and 4 in 5 business respondents say they are already optimised to take mobile payments

Mobile optimised business respondents - = have a mobile site / have a mobile optimised site using a 3rd party platform / have a responsive design website / have a mobile appAll Consumers respondents- Adults aged 18+ who are smartphone owners/usersAll business respondents – key decision makers for business respondents that sell or take payments online, and sell to consumers‘Global’ average - an aggregate of all 11 markets (UK, France, Germany, Italy, Spain, Australia, India, Japan, US, Mexico, Brazil)

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Device Use and Preference


98% of Indian consumers shop

onlinevs 95% global

average 2%

ONLINE COMMERCE DEVICE PREFERENCE

CQ1. Thinking about when you make a purchase or payment online, which, if any, of the following devices do you prefer to use?Base: All respondents (2000).

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EMERGING ONLINE SHOPPING DEVICES

24% 70% 6%

Desktop/Laptop Mobile devices Other

15% 29% 19%

Smart home device Smart TV Games Console

Mobile is the preferred device for online commerce

Mobile device – tablet or smartphone capable of making payments online

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Consumer Mobile Commerce Spend & Frequency

CQ7. In total, how much money have you spent on online purchases or payments via a mobile device (smartphone, tablet or smartwatch) in the last month? Base: All respondents (2000)

CQ2a. How often do you do each of the following, if at all, on a smartphone?CQ2b. How often do you do each of the following, if at all, on a tablet?Base: All tablet or smartphone owners (2000)

CQ2a. How often do you do each of the following, if at all, on a smartphone?CQ2b. How often do you do each of the following, if at all, on a tablet?Base: All tablet or smartphone owners (2000), Male (1342), Female (658), Gen Z (658), Gen Y (865), Gen X (400), Boomer (70), Older (7)

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MOBILE COMMERCE: FREQUENCY

Rs 9,020 -Indian consumers average monthly spend via mobile

device

83%Indians

purchase/pay online at least

weekly via mobile vs 48% global

average


TOTAL COUNT

RY

TOTAL GLOBAL AVERA

GE

GENDER GENERATION

M F Gen Z

(18-24)

Gen Y

(25-36)

Gen X

(37-51)

Boomer (52-66)

Older

(67+)

Several times a day 32% 9% 32% 33% 30% 34% 36% 11% 14%

Daily 17% 8% 17% 17% 17% 18% 18% 13% 0%

Several times a week 26% 18% 26% 25% 24% 26% 27% 27% 29%

Weekly 8% 13% 8% 9% 7% 8% 8% 23% 0%

Every 2 weeks / Fortnightly 5% 11% 4% 6% 4% 5% 4% 6% 14%

Monthly 7% 14% 7% 7% 9% 6% 5% 10% 14%

2-3 times in the last 6 months 2% 7% 2% 2% 3% 2% 1% 3% 14%

Once in the last 6 months 1% 3% 1% 0% 1% 1% 0% 3% 14%

Less often 1% 5% 1% 1% 2% 1% 1% 3% 0%

Never 1% 12% 1% 1% 2% 0% 1% 1% 0%

‘Global’ average - an aggregate of all 11 markets (UK, France, Germany, Italy, Spain, Australia, India, Japan, US, Mexico, Brazil)

Nearly a third of smartphone / tablet owners use it for ecommerce daily

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Consumer Mobile Commerce by Category

70%

68%

60%

58%

51%

48%

44%

43%

43%

39%

34%

31%

30%

23%

21%

21%

20%

13%

11%

Bill Payments (e.g. Phone Insurance, Utilities)

Clothing and accessories

Food & Drink

Tickets (e.g. Music, Movies, Arts)

Electronics & Computing

Grocery

Transport (e.g. rideshare, public transport, taxis)

Health & Beauty

Travel (e.g. Airline & Accommodation)

Subscriptions (offline & online including music and…

Fuel

Books & Magazines

Digital or Virtual goods (e.g. e-books, software, games,…

Online Gaming (e.g. xBox, PS4)

Toys & Games (physical)

Sporting Goods

Home & Garden

Charity

Digital currency (e.g. Bitcoin)

CQ6. Thinking about the payments or purchases that you have made using mobile devices (smartphone, tablet or smartwatch) in the past 6 months, which of these categories have you purchased from? Base: All mobile shoppers (1766)

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Bill payments and clothing & accessories are the most common payment categories among mobile shoppers

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54%

54%

51%

46%

45%

44%

44%

Introducing new digital technologiesto improve or manage overall

customer experience

Improving customer feedback systems/ mechanisms

Ensuring the security of ourIT/technology systems

Implementing Customer RelationshipManagement (CRM) software

Mobile optimisation of our customer-facing sales channels

Learning how to use our internal datamore effectively

Ensuring the privacy of customer data

Optimising customer experience and feedback are key priorities, while competition, cost implications of new technologies and the economy are concerns

Business Priorities & Concerns

41%

40%

40%

39%

39%

38%

36%

Competition from larger companies

The cost of keeping up with newtechnology

The state of the global economy

Business rates/ taxes

Regulatory and governmental changes

Consumer expectation around digitalservices

The state of the local economy

MQ5. Which, if any, of the following are priorities for your business/organisation over the next 12 months?Base: All business respondents (302)

MQ6. Which, if any, of the following are concerns for your business/organisation over the next 12 months?Base: All business respondents (302)

BUSINESS PRIORITIES (TOP 7) BUSINESS CONCERNS (TOP 7)

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The Mobile Shopping Experience

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Consumer Smartphone Attitudes & Behaviours

0% 20% 40% 60% 80% 100%

I can’t get through the day without my smartphone

I never leave home without my smartphone

I use my smartphone to help manage mylifestyle

My smartphone is my main source of newsthroughout the day

My smartphone is my connection to the world

My smartphone is the main way I connect withfriends

I carry my smartphone wherever I go

Total Gen Z Millenials Gen X Boomers OlderCQ3. And now thinking specifically about your smartphone (e.g. iPhone, Android), which of the following statements, if any, apply to you personally? Base: All respondents (2000), Gen Z (658), Gen Y (865), Gen X (400), Boomer (70), Older (7)

CQ2d. How often do you do each of the following, if at all, on a smartphone or tablet?Base: All respondents (2000)

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78% of Indian mobile shoppers

browse products/services at least daily vs a global average of

56%

82% of Indian Millennial mobile

shoppers browse for products/services

at least daily


All age groups rely on their smartphone with a high level of browsing among mobile shoppers

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61%

47%

40%

39%

38%

37%

36%

31%

30%

29%

26%

21%

13%

At home relaxing

In bed when browsing at the end of the day

Travelling for leisure

At the shops

Watching TV

Travelling to and from work/college/university

At work

At home keeping busy

While waiting (e.g. in a line or in a waitingroom)

Out and about with friends

Listening to audio content (e.g. podcasts,Spotify)

Trying on or testing products in-store

In the bathroom

Mobile Shopping Situations

CQ8. In which situations do you usually use your mobile device (smartphone, tablet, smartwatch) for purchasing or making online payments? Base: All mobile shoppers (1766)

CQ8. In which situations do you usually use your mobile device (smartphone, tablet, smartwatch) for purchasing or making online

payments? Base: All mobile shoppers (1766)CQ9. Which, if any, of the following have you ever done when

making a payment or purchase on a mobile device (smartphone or tablet)?

Base: All respondents (2000)

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47% mobile shoppers shop in bed when browsing at

the end of the day

41% of Millennial

mobile shoppers do so

while physically at

the shops

30% Millennial mobile

shoppers do so when out with their friends

44% have made

spontaneous purchases on their mobiles

47% of Millennial mobile shoppers

have made spontaneous purchases on their mobiles

Mobile purchases tends to occur at home while relaxing and four in 10 have made spontaneous mCommerce purchases

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Mobile Commerce Consumer Drivers & Barriers

44%

44%

38%

36%

31%

30%

28%

27%

Slow page loading

Security or trust issues

Apps not loading or crashing

Payment problems

Having long forms to fill out

Lack of product information

Registration problems

Difficulties with navigation

CQ11. And, thinking specifically about making a payment or purchase on a mobile device, which of the following statements, if any, apply to you personally?Base : All mobile shoppers (1766)

CQ10. Which, if any, of the following would make you less likely to interact with a business on a mobile device?Base : All respondents (2000)

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CONSUMER DRIVERS (TOP 8) CONSUMER BARRIERS (TOP 8)


57%

55%

54%

52%

45%

41%

41%

33%

Paying bills using a mobile device saves metime

I find it easy to use my mobile device formaking payments

Shopping using a mobile device saves metime

I find it easy to use my mobile device forshopping

I find it easier to make an urgent payment orpurchase whilst on the move as I can do so

using a mobile device

I can purchase products as soon as they go onsale or are reduced in price via my mobile /

tablet

When I’m browsing on my mobile device I can immediately buy the things I want

The apps I use have offers only available viamy smartphone/ tablet

Ease and time saving are the main driver of paying via mobile device but connectivity and trust issues can be barriers to interacting with businesses on a mobile device

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Mobile Commerce Consumer Abandonment

57%

27%

26%

23%

22%

22%

15%

Total abandoned purchase/ payment

Abandoned a purchase or payment on a mobile device because my preferred payment method

wasn’t available

Abandoned a purchase or payment on a mobiledevice because it took too long

Abandoned a purchase or payment on a mobiledevice because of concerns about security

Stopped making payments or purchases to/from acompany after a bad mobile payment or purchase

experience

Abandoned a purchase or payment on a mobile device because the site didn’t work for my

mobile devices

Abandoned a purchase or payment on a mobiledevice because it was too difficult

CQ9. Which, if any, of the following have you ever done when making a payment or purchase on a mobile device (smartphone or tablet)?Base : All respondents (2000)

CQ9. Which, if any, of the following have you ever done when making a payment or purchase on a mobile device (smartphone or tablet)?Base : All respondents (2000)

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REASONS FOR ABANDONING MOBILE PURCHASES


47% have abandoned a

purchase global average

31% of Indians have left items in their cart and

waited for an offer

This is even more common in younger shoppers

(18-34)31%

Over half have abandoned a purchase on a mobile device

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Apps: Consumer use and spend

CQ15. Thinking about the payments or purchases that you have made using mobile apps in the past 6 months, which of these categories have you purchased from / paid for using a mobile app? Base: All mobile shoppers (1766)

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CQ14. How often, if at all, do you make purchases or payments using mobile apps?Base: All mobile shoppers (1766)

66%63%

56%54%

45%44%43%42%

39%36%

30%27%26%

22%20%19%

17%11%11%



Food & Drink


Grocery




Health & Beauty

Subscriptions (offline & online including music and…

Fuel

Books & Magazines

Digital or Virtual goods (e.g. e-books, software,…


Sporting Goods


Home & Garden

Charity


72% Indian Mobile

Shoppers pay via app weekly vs 39% global

average

98% Indian Mobile shoppers pay

via apps vs 90% global average

CONSUMER APP PURCHASING BY CATEGORY


Mobile shoppers in India use apps more frequently than the global average. Bill payment and purchase of clothing and accessories are the top categories.

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Apps: Business adoption, barriers and sales

59%

34%

4%

Currently in the process ofdeveloping an app

Intend to develop an app

No plans to develop and app

BUSINESS PLANS FOR APP DEVELOPMENT

MQ8a. Which of the following best describes your approach to developing an app that will allow for payments?Base: All business respondents without mobile app (184)

MQ9. Approximately what percentage of your sales volume in the last 6 months has been made via in-app purchases?Base: All business respondents with mobile app (118)

MQ1. Which, if any, of the following statements apply to your business?Base: All business respondents (302)

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39% business respondents in India have an

app vs 24% global average

51% of online sales volume in India is via in-

app purchase vs 41% global average

Business respondents in India are more likely to have an app and to have higher sales volume in-app than the global average

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Social Commerce in India

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Social Commerce: Consumer Adoption, Frequency & Spend

57%54%

61%57%

40%

29%

Total using SM for purchase/ payment

Total Gen Z Millenials Gen X Boomers Older

purchase or pay at least weekly via social media

CQ16. Which of the following social media platforms, if any, have you made a purchase or payment from in the last 6 months?Base: All respondents (2000), Gen Z (658), Gen Y (865), Gen X (400), Boomer (70), Older (7)

59%

Average monthly spend via social media

Rs 9,488

CQ22. In total, how much money have you spent on all purchases or payments made through a social media platform in the past 6 months?Base: All who purchase via social media (1139)

CQ21. How often, if at all, do you make purchases or payments through social media platforms?Base: All who purchase via social media (1139)

57% Indian consumers shop via social media

vs 30% global average

CQ16. Which of the following social media platforms, if any, have you made a purchase or payment from in the last 6 months?Base: All respondents (2000)

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SOCIAL COMMERCE CONSUMER ADOPTION


Over half of consumers have purchased via social media in the past 6 months, with over half of those who have doing so weekly

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Social Commerce: Platforms and Categories

41%

19%

28%

18%

WhatsApp True Caller Payments Instagram Other social mediaplatforms

CQ16. Which of the following social media platforms, if any, have you made a purchase or payment from in the last 6 months? Base: All respondents (2000)

45%30%30%

29%29%

28%25%

23%22%

21%20%20%

18%17%

16%15%

13%12%

11%9%


Food & Drink


Health & Beauty



Books & Magazines

Grocery


Subscriptions (offline & online including music…

Digital or Virtual goods (e.g. e-books, software,…



Sporting Goods


Home & Garden

Would not consider buying anything from a…

Fuel


Charity

CQ19. Which of the following product categories, if any, do you ever buy or would you consider buying directly from your social media feeds Base: All respondents (2000)

20

CONSUMER SOCIAL COMMERCE BY PLATFORM

SOCIAL COMMERCE PURCHASE CATEGORIES


Clothing and accessories is likely to be the top purchase category

Public

Social Commerce: Consumer Attitudes & Behaviours


32%

28%

25%

25%

24%

22%

22%

17%

17%

14%

14%

11%

11%

6%

I prefer using a website to make onlinepurchases

I am worried about safety/ security of mypersonal information on social media

I don’t want my financial information linked to my social media

I only use social media to browse

I would never share my financialinformation with a person or business on

social media

I’ve purchased something after seeing it on social media

I see products all the time on social mediathat I want to buy

I don’t trust social media

I would consider purchasing somethingdirectly from a social media post

I have made a purchase on social mediawithout leaving the platform

Most of my impulse purchases are throughsocial media

I didn’t know I could purchase on social media

I don’t understand how purchasing via social media works

I don’t use social media ever

CQ20. Thinking about purchasing through social media, which of the following statements, if any, do you feel apply to you personally? Base: All respondents (2000)

35%

31%

28%

27%

25%

25%

23%

17%

I have seen items available for sale onsocial media sites, but will look for thesame item to purchase from an online

store

I have seen an item on a social mediaplatform (e.g. Instagram) and then been

inspired to purchase it.

I would buy from a social media platform ifI could use my PayPal account for

convenience and safety

I don’t trust the process of buying via social media platforms (e.g. Instagram)

I have seen an item in an image on a social media platform that I have wanted to buy, but haven’t been able to find information,

or find the product for sale anywhere

I discover products on social media that I don’t find anywhere else

I love buying through social media because it’s fast and easy

I would provide my payment details to asocial media platform if it meant I could

buy directly from my newsfeed

CQ18. And, thinking specifically about the social media platforms you use personally, which of the following, if any, do you feel apply to you? Base: All respondents (2000)

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Over a third of consumer respondents have seen items for sale on social media but then looked to purchase the item from an online store

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Social Commerce: Business Adoption and Sales Volume

62%

23%

12%

2% 0%

Yes - wecurrently accept

payments viasocial media sites

/ apps

Yes - we willaccept paymentsvia social mediasites / apps in

the next 6months

No - notcurrently, not in

the next 6months, but

would like to atsome point in the

future

No - and will notin the future

Don't know

MQ10. Does your business currently, or will it in the next 6 months, accept payments via social media sites or social media apps? Base All business respondents (302)


respondents accept payment via social media

vs. global average of 35%

22

55% sales volume is via

social media in India vs global average of 45%

SOCIAL COMMERCE BUSINESS ADOPTION


MQ10. Does your business currently, or will it in the next 6 months, accept payments via social media sites or social media apps? Base All business respondents (302)

MQ14. Approximately what percentage of your business’s sales volume (i.e. number of sales) in the last 6 months was made through social platforms / social media apps? Base All business respondents who sell through social media (188)

Almost 2 in 3 business respondents currently accept payments via social media sites or apps and almost a quarter plan to do so in the next 6 months

Public

Social Commerce: Business Use & Attitudes

97% 97% 94% 92% 90% 89% 85% 83%72%

95%

70%

22%

Promoted onSold on

MQ12. Approximately how often, if ever, does your business use each of the following social media platforms to promote your business?Base: All business respondents (302)MQ13. Which of the following social media platforms or social media apps, if any, does your business sell through?Base: All business respondents who sell through social media (188)

43% 43%

21% 21% 19% 14% 13%

We have a social media presence, but

we don’t sell via social media

We are worriedabout safety andsecurity of my

and/or my customersinformation

We don’t know what the costs of

facilitating social media transactions

are

We don’t think our customers want to buy through social

media site

We don’t understand how selling via social

media works

None of the above We don’t trust social media

MQ15. Which, if any, of the following statements apply to your business?Base: All business respondents (302)

23


18% Indian business

respondents don’t use social

media at all

12% business

respondents don’t use social media at all -global average

Nearly all business respondents use social media for promotion but fewer for sales. 2 in 5 are worried about data security on social media.

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Social Commerce: In-context purchasing / selling

CQ17. When you make purchases or payments via social media sites and apps, how frequently are sales made directly within the social platform or app?Base: All who purchase via social media (1139)

33%

30%

23%

9%3%2%

Always Frequently Occasionally Rarely Never DK

CONSUMER FREQUENCY OF IN-CONTEXT SOCIAL PAYMENTS

MQ11. When you sell via social media sites and apps, how often are sales made directly within the social media platform or app?Base: All business respondents who sell through social media (188)

73%

20%

6% 1%0%0%

Always Frequently Occasionally Rarely Never DK

BUSINESS FREQUENCY OF OFFERING IN-CONTEXT SOCIAL PAYMENTS

24


Almost two thirds of consumers buying through social media always or frequently purchase or pay directly through the app

Public

Cross Border Shopping

25

Public

Cross Border Online Shopping Attitudes

3% 2% 5% 2%

22%10% 10% 20%

21%

13% 14%19%

54%75% 71%

59%

It is not important to me ifthe online retailer is based in

another country

I prefer to support businessesin my own country

When PayPal is available, Ifeel more secure to shop on

international stores

I trust online stores fromother countries as much as

stores from the country I liveinDon't Know B2B Disagree Neiter agree nor disagree T2B Agree

CQ27. And, thinking specifically about making a payment or purchase online, to what extent do you agree or disagree with the following statements?Base: All online shoppers (1959)

37%

28%

34%

1%

Very Likely Quite Likely Not very/ not at all likely Don't Know

LIKELIHOOD TO PURCHASE WITHOUT PAYPALATTITUDES TO CROSS BORDER SHOPPING

CQ30. Please imagine you are about to make a purchase from a website in another country, and PayPal is not an accepted method. How likely would you be to continue with the payment if PayPal was not available as a method of payment?Base: All who shop cross-border and use PayPal (503)

26


The majority of online shoppers (7 in 10) say that PayPal availability increases feelings of security on international stores

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Cross Border Shopping: Consumer Behaviours

DRIVERS FOR INTERNATIONAL SHOPPING (TOP 8)

47%

42%

39%

34%

32%

31%

31%

31%

Higher product quality

Better prices

I can discover new and interesting products

Access to items not available in my owncountry

Trust in product authenticity (e.g. Levi’s jeans originating from U.S.)

Better customer service

I can use my preferred payment method

Reputation or brand recognition of onlinestore

CQ28. You say you have made purchases online from websites in other countries. Please select your main reasons for shopping on websites in other countries rather than the country where you live.Base: All who shop cross-border (1053)

44%

42%

39%

36%

28%

27%

24%

23%

Shipping / postage charges were too high

Delivery time was too long

Was not clear how much duty, tax, orcustom fees I would have to pay

Return shipping was too expensive

Concerns about website security

Had to pay using another currency

Currency conversion rate was poor

Preferred payment option was not available

BARRIERS TO INTERNATIONAL SHOPPING (TOP 8)

27

CQ29. You say you have not made purchases online from websites in other countries. Please select your main reasons for not shopping on websites in other countries rather than the country where you live.Base: All domestic only shoppers (826)


Higher quality is the top driver of cross-border shopping, but delivery (cost and time) can be a barrier

Public

Cross Border Shopping Usage and Volumes

54% Indian online

shoppers shop cross-border, vs 55% global

average

41%

53%

2%

42%

52%

2%

Domestic sites only Domestic and Internationalsites

International sites only

Mobile Shoppers Online Shoppers

CQ26. How would you describe your online shopping behaviour?Base: All online shoppers (1959)

10% 10% 10%9%

10%

8%

10%

8%9%

4%

1%-10% 11%-20% 21%-30% 31%-40% 41%-50% 51%-60% 61%-70% 71%-80% 81%-90% 91%-100%

MQ17. In the last 6 months, approx. what % of your sales volume (# of sales) came from international customers?Base: All business respondents (302)

28


On average, Indian online

business respondents

received 47% of sales from

international customers in the

last 6 months

55% Indian mobile

shoppers shop cross-border, vs 57% global

average

1 in 2 mobile shoppers in India shop cross-border and business respondents say they receive nearly half their sales volume internationally

Public

Business Experiences of Cross Border Selling

29%

28%

28%

27%

27%

27%

26%

26%

24%

23%

23%

23%

23%

21%

15%

Customer Service to international buyers is challenging

We sell exclusively to domestic customers because sellinginternationally is too difficult

Providing effective and affordable shipping options is harder thanfor domestic customers

Payment fraud and fraudulent chargebacks are harder to manageinternationally

Our business actively targets international buyers

Our products or services require modifications to meetinternational quality standards

Selling to international customers has helped our business grow

Selling internationally is expensive

International fees and charges are hard to navigate

We’ve had to accept new, local payment methods to sell internationally

Selling internationally is time-intensive

Understanding international competitors and customerpreferences is harder

There is little demand for our products or services internationally

Getting the language and localisation right is difficult

I do not understand the legislation and regulations in othermarkets adequately to sell internationally

MQ18. Which, if any, of the following statements applies to your business with regards to selling online internationally?Base: All business respondents (302)

29

27%business

respondents said they actively

target international

buyers

26%business

respondents said ‘selling to

international customers has

helped our business grow’


A quarter of business respondents are actively targeting international buyers and a quarter also say this has helped growth of their business

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APPENDIX

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Ipsos MORI’s Standards & Accreditations

The (EU) 2016/679 General Data Protection Regulation (GDPR) & the UK Data Protection Act 2018 (DPA) – Ipsos MORI is required to comply with the General Data Protection Regulation and the UK Data Protection Act; it covers the processing of personal data and the protection of privacy.

HMG Cyber Essentials – A government backed and key deliverable of the UK’s National Cyber Security Programme. Ipsos MORI was assessment validated for certification in 2016. Cyber Essentials defines a set of controls which, when properly implemented, provide organisations with basic protection from the most prevalent forms of threat coming from the internet.

Fair Data – Ipsos MORI is signed up as a ‘Fair Data’ Company by agreeing to adhere to ten core principles. The principles support and complement other standards such as ISOs, and the requirements of Data Protection legislation.

Ipsos MORI's standards & accreditations provide our clients with the peace of mind that they can always depend on us to deliver reliable, sustainable findings. Moreover, our focus on quality and continuous improvement means we have embedded a 'right first time' approach throughout our organisation.

This work will be carried out in accordance with the requirements of the international quality standard for market research, ISO 20252 and with the Ipsos MORI Terms and Conditions

ISO 20252 – is the international market research specific standard that supersedes BS 7911 / MRQSA & incorporates IQCS (Interviewer Quality Control Scheme); it covers the 5 stages of a Market Research project. Ipsos MORI was the first company in the world to gain this accreditation.

MRS Company Partnership – By being an MRS Company Partner, Ipsos MORI endorse and support the core MRS brand values of professionalism, research excellence and business effectiveness, and commit to comply with the MRS Code of Conduct throughout the organisation & we were the first company to sign our organisation up to the requirements & self regulation of the MRS Code; more than 350 companies have followed our lead.

ISO 9001 – International general company standard with a focus on continual improvement through quality management systems. In 1994 we became one of the early adopters of the ISO 9001 business standard.

ISO 27001 – International standard for information security designed to ensure the selection of adequate and proportionate security controls. Ipsos MORI was the first research company in the UK to be awarded this in August 2008.

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Key definitions - Consumer32

The following definitions are used when describing participants in the survey

Consumers - Adults aged 18+ who are smartphone owners/users

Online shoppers – Have used an online enabled device to make a payment online

Mobile shoppers - Currently use a smartphone or tablet to make purchases or payments online

All tablet owners – Currently own or use a tablet

All who purchase via social media – Made a purchase via a social media site in the past 6 months

Wearable payment technology owner – Currently own or use wearable technology capable of making payments

All who shop cross-border and use PayPal – Purchase from international sites and have used PayPal to make an a purchase online with a mobile device

All who shop cross-border - Purchase from international sites

All domestic only shoppers – Only purchase from domestic sites

All who leave reviews – Have posted a review in the past 12 months in relation to an online purchase


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Key definitions - Business33

The following definitions are used when describing participants in the survey

All business respondents – key decision makers for businesses that sell or take payments online, and sell to consumers

Non-mobile optimised business respondents – Do not have a mobile app, or m-dot site and website is not optimised for mobile sales

Mobile optimised business respondents - = have a mobile site / have a mobile optimised site using a 3rd party platform / have a responsive design website / have a mobile app

Business respondents without mobile app - Do not have a mobile app

Business respondents with mobile app - Have a mobile app

Business respondents without mobile app and no plans to develop one - Do not have a mobile app and are not planning to develop one

Business respondents who sell through social media – Currently accept payment through social media

Business respondents that allow reviews – Allow consumers to leave reviews, ratings or comments directly on their website

Business respondents that don't allow reviews – Do not allow consumers to leave reviews, ratings or comments directly on their website

Aware of systems – Aware of systems that analyse mobile device data to help fraudulent activity

Business respondents that benefit from reviews - Allow consumers to leave reviews, ratings or comments directly on their website and read / respond to these reviews


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Key definitions - Other34

ONLINE COMMERCE VIA SMARTPHONE - making a purchase or payment online using a smartphone

‘Global’ average - an aggregate of all 11 markets (UK, France, Germany, Italy, Spain, Australia, India, Japan, US, Mexico, Brazil)

Mobile commerce – making a purchase online via a tablet or smartphone

Mobile device – tablet or smartphone capable of making payments online


Technical notes

On behalf of PayPal, Ipsos interviewed a quota sample1 of c.2000 (22,000 in total) consumers (aged 18-74) who owned or used a smartphone and c. 300-500 (4602 in total) Business influencers or decision makers who sell or take payments online to Consumers (and businesses) in each of 11 countries (UK, France, Germany, Italy, Spain, Australia, India, Japan, USA, Mexico and Brazil). Interviews were conducted online between 23rd July and 25th August 2019.Data was weighted in Australia on age and income to replicate study conducted previously. No other weighting was applied.

1 In most countries quotas were applied on age, gender and region. These were either representative of the online population or representative of online smartphone owners

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mcommerce report · respondents towards mobile commerce understanding that we are going through a...

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