Home > Financial > Irelandís online retailers missing out on international sales

Irelandís online retailers missing out on international sales

Written by Robert McHugh, on 7th Apr 2016. Posted in Financial

article headline

New research from PayPal suggests online shoppers are holding back from making international purchases due to the potential cost of return shipping and Irish online businesses are paying the price.
 
The research conducted by Ipsos MORI shows that online shoppers in some of the world’s top online export markets including the US, China and European neighbours like France and Spain would be more likely to buy from international sites if they had the option of free return shipping.
 
Over a 12-month period, some 20% of Irish online shoppers who made purchases from sites outside Ireland have purchased an item on an international website that, when it arrived, wasn’t as described.

However, just 9% returned a cross-border purchase for not matching the website’s description. Forty five per cent of Irish online shoppers said they would be more likely to buy from a website in another country if it had the option of refunded returns. 
 
The sample of 29 global markets showed that just over a third (35%) of online shoppers said the cost of return shipping deterred them from making more purchases on international websites.

PayPal has today announced that it is launching a new service that will cover return shipping costs for businesses and their customers. From today, PayPal customers in eligible markets can avail of the Refunded Return Service. Customers who pay with PayPal in Ireland now have the option to claim back the cost of returning unwanted goods worldwide up to the value of €30. 

It is hoped the service will provide a boost to Irish online retailers who can now increase their focus on international markets without worrying that customers will be put off by the potential costs of returning goods.
 
Louise Phelan, Vice President of PayPal’s Global Operations in Europe, Middle East and Africa says, "International online markets hold enormous potential for Irish businesses and retailers. However, the cost of return shipping acts as a real deterrent to prospective customers – and because of that, Irish businesses are losing out."

She added, "Millions of people across the world shop on Irish sites every year. We now know that by taking away one of the biggest barriers to international online shopping, we can increase that even further."

Source: www.businessworld.ie

More articles from Financial

image Description

Irish SME lending up in 2nd quarter by the most since 2011

Read more
image Description

Hermes Investment Management opens new office in Dublin

Read more
image Description

Irish Central Bank's Brexit authorisations top 100

Read more
image Description

Junior Minister plays down prospects for changes to bankers pay regime

Read more
image Description

New survey reveals Irish people’s views on a good retirement

Read more