More than half of younger consumers in a 29-country survey have purchased online from a website outside of their own country.

Business and marketing buzzwords come and go, but “millennials” is not going away any time soon—for good reason. Brought up in the digital age, this generation is the most tech-savvy, diverse and connected generation we’ve ever known, and they’re projected to spend more on online commerce than any other customer demographic.  

Simply put, almost any business that plans to not just survive but thrive should consider millennials at every decision-making juncture: from merchandizing your website and mobile optimization to social media and marketing.  Market research has posited that how effectively you sell to this customer base will directly correlate with your business’ overall success.

If that seems like a daunting undertaking – where does one even begin? – there’s good news! We know more than ever about how businesses can actually reach these shoppers: new global consumer research identifies several cross-border buying patterns that millennials surveyed have in common, no matter the distance between them. The findings illuminate the online shopping preferences and habits of 18-34 year-olds in 29 countries around the world and reveal fascinating, valuable takeaways that companies of all sizes and ranges of expertise can put into practice today.

Borders are not barriers

The fact is, millennials around the globe are looking outside of their own borders to purchase goods, as 52% of millennials surveyed report having shopped cross-border during the last year. But the degree to which they look to buy foreign brands varies by country and region. In the United States and Asia the percentage is far below the global average, with only 28% of millennials polled in the U.S. having bought from other countries over the past 12 months, 39% in India, 34% in China, and only 15% in Japan. In contrast, millennials in Latin American countries tend to buy from foreign brands far more than the global average. 68% of Mexican millennials and 57% of Braizilian millennials surveyed say they have purchased cross-border in the past year. Millennials in Australia have a similarly high percentage: 66% report recent cross-border activity.

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The good news for U.S. merchants is that when millennials around the world look cross-border, they often look to the United States. In all the regions surveyed, the U.S. was the top cross-border destination. Latin American millennials lead the way, with 45% of cross-border shoppers having bought U.S. brands in the past 12 months.

Expanded comfort zones open new doors

Nearly half of millennials surveyed are cross-border shoppers who feel generally comfortable buying from an online store in another country. For the cross-border shoppers surveyed, 47 percent have purchased in a foreign currency and 41 percent have bought from a website that wasn’t in their own language.

Merchants looking to attract this new demographic should think mobile-first. 20 percent of millennials surveyed around the world report shopping via smartphone—and this figure is only expected to grow. Since this age group is always-on, ensuring that your website is optimized for mobile is critical to keeping this group engaged.

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Deals, Deals, Deals

Of millennials surveyed from around the world, 64 percent don’t mind where an item is from as long as the total price is good, and 63 percent of those surveyed will check currency conversion rates before they purchase. This is especially true when it comes to millennial attitudes around shipping. Faster delivery (40 percent of millennials surveyed), and free shipping (51 percent of millennials surveyed) are reported as two factors that would make them more likely to buy from a website in another country. 

Because millennials are price-conscious shoppers, it’s important that websites have an easy way to access product information, reviews, and price comparisons. Consumers are looking for a seamless experience. Providing information and discounts that are accessible to these buyers will improve the customers’ journey.

Provide a consistent & authentic brand  

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Attract more cross-border shoppers across cultures and borders by promoting product authenticity. Nearly 40 percent of millennials surveyed selected proof of product authenticity as a factor making them more likely to buy from a website in another country.  With many consumers often reporting that they refrain from shopping internationally because they are afraid the item will not be the same as what will ship to their door, ensure that all authenticity details are clearly listed on your website to alleviate doubts. 

Understanding the key millennial shopping and buying behaviors can accelerate a passion project into a global business. Expanding horizons and reaching out to a new audience will not only introduce SMBs to a new customer base, but will also open sales to new possibilities. 

Happy selling! 

Unless otherwise cited, all data herein is as reported in research funded by PayPal, Inc. and conducted online by Ipsos America, Inc. between September 17 and October 28, 2015.  The survey posed questions related to consumer buying habits to 23,354 adults aged 18 to 34, who owned and/or used an internet enabled device, located in 29 countries (United Kingdom, Ireland, France, Germany, Austria, Switzerland, Italy, Spain, Netherlands, Sweden, Poland, Turkey, Russia, Israel, United Arab Emerites, United States, Canada, Brazil, Mexico, Argentina, India, China, Japan, South Korea, Singapore, Australia, South Africa, Nigeria and Egypt).   Copyright 2016 PayPal.

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