With roughly 4.3 billion people living in the Asia-Pacific (APAC) region, stretching across more than a dozen countries, and with internet connectivity growing by leaps and bounds, it’s no secret that merchants desire to tap these markets to satisfy demand for eCommerce.
But making the sale and closing the deal — well, that’s easier said than done. Joint research between PYMNTS and Citcon in the “Emerging APAC Opportunity” report shows that, for 500 firms in North America and Britain, a significant percentage of sales is being left on the table.
Shopping cart abandonment, in other words, is a real risk as these merchants seek to make inroads into APAC markets. There’s a critical importance in considering and deploying technologies in the service of payments localization.
The challenges and opportunities are not limited solely to the largest merchants.
APAC expansion is not limited to big businesses either. Small- to medium-sized businesses (SMBs) are some of firms most enthusiastic about establishing an APAC presence in the next year. Merchants that generate less than $20 million in annual revenue are the most likely to plan to establish their APAC presence in the next 12 months, with 18% intending to do so.
But as for the challenges, cart abandonment is detrimental to sales in the APAC region — hovering at more than 52% of the sample.
Among the reasons cited by merchants for those abandoned carts — and the lost sales: lack of desired/available payment options. Unexpected shipping costs also play a factor, according to the responses, and consumers also may pivot to competitors because they might have found cheaper products elsewhere.