RSS feed Get our RSS feed

News by Topic

BizReport : Ecommerce archives : October 05, 2010

Report: Ecommerce brands pushing for global buyers

With the economy still struggling around the globe, retailers are looking abroad to grow their buying audience. According to a recent study from and Forrester Research, online retailers are beginning to look for global shoppers for their wares rather than looking only to their national audience.

by Kristina Knight"If executed successfully, selling globally can generate a healthy double-digit percent of sales. The global online population stands at 1.6 billion today, and the purchasing power of that group represents a significant opportunity for web-enabled businesses," said Sucharita Mulpuru, Vice President, Principal Analyst with Forrester Research.

The State of Retailing Online 2010: Key Metrics, Multichannel and Global Strategies Report found that nearly three-quarters (73%) of retailers are already selling to a global consumer base and that 17% have begun the process of establishing a foreign warehouse. Many of these initial sales, however, are from catalogs and by big brands such as JCPenney, Macy's or Nordstrom. For small retail hubs, especially online only retailers, going global can be quite intimidating.

There are issues with returns, communication problems because of language differences and currency exchange snafus. But, with a still struggling economy, looking to a global base is enticing, especially since technology is becoming simpler to use.

"International customers have visited U.S. retail Web sites for years," said Fiona Swerdlow, Head of Research for "While still in the early stages, US retailers are starting to monetize that traffic by meeting global consumer demand for their products and services, which in turn should help to bolster their bottom line."

The survey further found that over the past year:

• 27% of etailers have seen units per transaction increase
• 47% have seen average order values increase
• 45% are seeing consumers return to their store
• 31% report lower shopping cart abandonment rates

Tags: ecommerce, etailers, Forrester Research, online retailers, online shopping,

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.