Report: Consider Language, Currency, Payment Method for Better Conversion in Global E-Commerce Markets
Nov. 10, 2014
Cleverbridge, an e-commerce technology provider based in Cologne, Germany, released a new report that took a look at the global market for e-commerce payments. The report, E-Commerce Benchmarks: Data for Improving Your Online Sales Strategy , expects e-commerce spending to hit $1.5 trillion in 2014, more than 20 percent higher than 2013, and said the way merchants leverage currencies, language and payment methods in different markets will affect how much of that total will end up being spent on their sites.
Regarding language, Cleverbridge found that while the native language of most countries accounted for 90 percent or more of the e-commerce transactions in those countries, there are exceptions. In some markets, including Canada, Italy, the Netherlands and Switzerland, the native language may account for only 70 or 80 percent of all online transactions (e.g., well over half of all e-commerce transactions in Mexico and 8.5 percent in Italy are in English). In order to convert the maximum number of browsers to buyers, the report noted, accounting for the secondary language in global markets is vital.
The report drew similar conclusions about currency. While most orders are placed in a country’s native currency, in certain markets, notably Australia, Canada and Switzerland, a significant percentage of orders are placed in other currencies – usually U.S. dollars.
The report also said if you want to transact globally, credit cards and PayPal are musts: together they account for 90 percent of all online orders worldwide. PayPal, in particular has found traction recently, more than doubling from 9.3 percent to 20 percent of all transactions from 2006 to 2014. In addition to credit cards and PayPal, however, Cleverbridge pointed to four payment methods that are necessary if businesses want to operate in certain markets: Boleto Bancario in Brazil, Direct Debit in Germany, Konbini in Japan and Swedish Real-Time Banking in Sweden.