South Korea has been cited as the number one destination for US retailers to target.
With international expansion now viewed as an increasingly attractive offer for ambitious e-retailers, Borderfree – a supplier of e-commerce solutions for online businesses – has highlighted that cross-border spending by South Koreans hit the $1 billion mark last year.
Data from the company suggests that top spenders parted with an average of $791 in 2013, and companies have been advised to act on the findings.
Backed by favourable exchange rates, broad access to credit cards and online payment systems as well as the fastest broadband in the world, South Korea is now representing what Borderfree calls a “desirable market” for e-commerce.
This is particularly the case in the US, where luxury brands and technology companies have been all too happy to welcome their overseas customers.
In a new study from Borderfree, it was revealed that South Koreans outscore US shoppers in the credit card stakes, owning an average of five per person compared to slightly more than two in the US.
Some of the country’s most frequent online shoppers are also partial to a good deal from US companies and even take classes in cross-border shopping.
Michael DeSimone, chief executive officer at Borderfree, said retailers can take plenty out of the findings.
“South Korea presents one of the best opportunities for American retailers looking to expand their e-commerce sales overseas.
“South Koreans are extremely receptive to US brands, particularly in the luxury and technology categories. They are also highly responsive to online deals, and our retailers have found great success with targeted social campaigns in the region,” said DeSimone.
Rest of the world?
Fortunately for all the other online shopping nations, Borderfree did manage to forecast some promising signs for retailers outside of the States.
The company backed many more countries to gain a share of the spoils as South Korea increases its total online retail spending up to $25.3 billion by 2017, up from $19 billion in 2013 to signal a 33% rise.