Indians will spend an estimated ₹54,700 crore shopping online from other countries in 2015. The online spends inclusive of cross-border shopping is estimated to reach ₹7,02,900 crore by 2017, says a joint report on Global Cross Border Consumer Research 2015 by digital payment provider PayPal and IPSOS, a market research company.
The research maps the evolution of cross border online commerce to identify why consumers shop online across borders and how do they pay for these transactions. It also shares insights on the growth prospects for the Indian e-commerce sectors in 2017, says a release from PayPal on the highlights of the report.
The research evaluates the online and cross-border shopping habits of over 23,000 internet users across 29 countries including 808 interviews in India according to PayPal, which is used as a cross-border payment option by 84 per cent of shoppers.
Although cross border trade is forecasted to grow in India by 78.5 per cent from 2015 to 2016, high Customs duty and high delivery shipping costs are key deterrents. Nearly 52 per cent of online shoppers who have not shopped cross border state delivery shipping costs as preventing them from shopping cross-border, and 43 per cent say having to pay Customs/fees and or taxes is a barrier, the release said.
The research highlights that desktops account for the highest proportion (53 per cent) of purchases made by cross border shoppers from websites in another country in the last 12 months.
By 2017, mobile spend (including smartphones and tablets) for all online shopping within India and cross border is predicted to reach ₹3,18,600 crore by 2017 from the estimated ₹1,26,500 crore in 2015, the release said.