Online retailers missing out on international sales – PayPal
7 April 2016 | 0
Online shoppers are holding back from making international purchases due to the potential cost of return shipping and Irish businesses are paying the price according to research conducted by Ipsos MORI conducted on behalf of PayPal.
The report shows that just over a third (35%) of online shoppers in 29 markets – including the US, China, France and Spain – would be more likely to buy from international sites if they had the option of free return shipping.
To help businesses maximise their international potential, PayPal is launching a new service, available internationally and in Ireland, that will cover return shipping costs for businesses and their customers.
From today, PayPal customers in eligible markets can avail of the Refunded Return Service. Customers who pay with PayPal in Ireland now have the option to claim back the cost of returning unwanted goods worldwide up to the value of €30. It’s free to activate, simple to use and each PayPal customer can make up to 12 eligible claims over a 12-month period.
“International online markets hold enormous potential for Irish businesses and retailers. However, the cost of return shipping acts as a real deterrent to prospective customers and because of that, Irish businesses are losing out,” said Louise Phelan, vice president of PayPal’s global operations, EMEA.
“Millions of people across the world shop on Irish sites every year. We now know that by taking away one of the biggest barriers to international online shopping, we can increase that even further. PayPal has more than 179 million active accounts around the world and can therefore help Irish online businesses reach an increased and lucrative global customer base.”
Irish consumers will also benefit from PayPal’s Refunded Return Service. Over a 12-month period, some 20% of Irish online shoppers who made purchases from sites outside Ireland have purchased an item on an international website that, when it arrived, wasn’t as described. However, just 9% returned a cross-border purchase for not matching the website’s description. Some 45% of Irish online shoppers said they would be more likely to buy from a website in another country if it had the option of refunded returns.