A new study conducted by Visa has shown that online merchants find significant growth opportunities in cross-border sales and international expansion.
The Visa Global Merchant eCommerce Study found 87% of the major online merchants believing in the potential of cross-border expansion to support the growth of their business.
Currently, nearly 66% of eCommerce merchants have cross-border sales that contribute around 31% to their revenue. Visa noted that 51% of these companies with foreign sales require help to optimise their sales.
Visa global head of merchant sales and acquiring Suzan Kereere said: “The data is clear; cross-border is a major growth opportunity. But it’s not easy, especially for small businesses.
“As a global platform that sees millions of transactions daily, Visa helps merchants find new customers, verify their customers’ digital identities, and create secure, seamless experiences.”
The study was performed across the US, UK, Australia, France, Spain, China/Hong Kong, Canada, Germany, Mexico and Singapore markets.
End of the year holiday season contributes 25% of annual revenues for 86% of the study respondents. However, 52% cited increased competition as a great risk.
Moreover, 34% of respondents in the US and 54% in China said that trade policy can be a risk, while 64% of those in the UK cited concerns regarding uncertainty in Europe.
The study also found eCommerce merchants bullish regarding expansion into new markets to stay competitive during the holiday season.
Visa said that 66% of merchants that do not have cross-border sales intend to commence in the near future, with 90% planning for the coming three years.
The study found that customers prefer quick delivery, easy checkout and simple payment methods with both domestic and international shopping.