How much of the e-commerce cake is eaten abroad?
Both in the United States and Canada, online orders from abroad represent roughly three percent of the total retail e-commerce revenue. This share may seem small, but considering the spike experienced in online sales in the past two years, cross-border e-commerce has also expanded. As cross-border financial flows are forecast to grow the most in emerging economies, it comes as no surprise that Mexico shows the highest cross-border e-commerce share of all three North American markets, at six percent.Compared to its northern neighbors, Mexico also harbors the most open-minded consumers to ordering online from overseas. Whereas more than 70 percent of surveyed Mexican respondents buy from local as well as foreign websites, around half answered the same in Canada. However, in the United States, online shoppers favor local merchants to a much higher extent, as over 60 percent buy mainly from U.S.-based e-retailers.
To each their own
Whether it be by share of U.S. consumers who shop abroad or by market share, China is the favorite country to buy from abroad in the United States. The United Kingdom and Canada are the other two most-preferred markets to purchase outside of the U.S. However, several factors can keep shoppers away from buying abroad. In a recent survey, around two-thirds of U.S. respondents said they often abandon their online carts with UK brands if shipping costs are too high or if delivery takes too long.In Canada, digital buyers are generally drawn to shopping on U.S. websites. This country accounted for almost half of the Canadian cross-border e-commerce market as of 2021. Even though most Canadian online shoppers frequently bought online from the U.S. in that year, less than one in ten intended to increase their purchases in the neighboring market.
Finally, Mexican consumers mainly buy abroad from the U.S., representing over 40 percent of its cross-border e-commerce market. China came in a close second place, with a 35 percent share, followed by Japan. If we consider consumer preferences, a higher proportion of Mexican respondents cite Spain as one of their favorite markets to buy online.
