NEW YORK, NEW YORK--(Marketwire - Feb. 12, 2013) - A recent survey of global online shoppers reports that eCommerce merchants selling abroad are missing out on sales and revenue opportunities because their websites lack local currency pricing capability.
The survey, conducted by Penton Research in November 2012 and commissioned by E4X, the global payments solution provider owned by Cambridge Mercantile Group, shows that international eCommerce continues to expand globally but many online merchants are not keeping pace with local shopper preferences in their pricing strategies.
The survey polled 30,000 online shoppers in Canada, the UK, Australia, and Germany about their shopping habits on eCommerce sites. The majority of shoppers polled indicated displeasure with sites that priced in US dollars (USD) only. As a result, online merchants are likely losing a considerable amount of revenue by pricing in only one currency.
Of all shoppers polled, a third showed their aversion for USD-only pricing by either abandoning carts, purchasing less, leaving the site to check conversion rates or never returning to the website.
Correspondingly, the survey indicates that pricing in local currency, or providing currency conversion capability, could boost eCommerce sales globally. Many respondents said they would look more favorably on an eCommerce website that displayed goods in local prices or provided currency conversion capability on the site.
"It is natural for eCommerce merchants to concentrate on domestic markets and USD pricing initially, not fully appreciating the role that local pricing will play in their sales success internationally. Global consumers strongly prefer to shop and purchase in their own currency and as a result, USD-only websites are likely leaving money on the table by ignoring global shopper preferences. Additionally, many ecommerce merchants don't realize that they can price in foreign currencies and still settle in an expected, guaranteed amount of USD," said Gary McDonald, President of E4X.
An average of 92.2% of survey respondents said they would prefer to shop and make purchases on websites that price products in their local currency. An average of 33% of those who responded to the survey said they were likely to abandon a purchase if they discovered that the pricing is in USD only.
These two responses, along with other relevant pieces of data, are analyzed in E4X's newly released Whitepaper: Local Currency Pricing for eCommerce - Increasing Online Sales by Implementing a Global Pricing Strategy. The whitepaper details all the relevant results and conclusions from this survey and outlines the attitudes and behaviors of online shoppers in United Kingdom, Australia, Canada and Germany.
According to Mr. McDonald, "Global shoppers demand sensitivity to local cultures and generally react positively to a local shopping experience. If eCommerce merchants show this respect with a simple offering of localized currency, they will enjoy increased sales and a more positive brand image as a truly global market player."
E4X is a global leader in multi-currency settlement solutions, working alongside global processors to facilitate foreign exchange and global payments for ecommerce merchants. With E4X's patented technologies and industry-leading services, merchants can take advantage of local currency pricing, rate guarantees, transparent pricing and enhanced and consistent reporting across multiple currencies, processors and payment types -enabling successful global expansion and profitability.