Online Retailers Ramping Up Global Expansion Efforts
Seventy-three percent of 87 retailers surveyed by Forrester Research for Shop.org said they're already sending merchandise abroad from their home country’s distribution center, with an additional 17 percent having an established foreign warehouse in place. What's more, on average, retailers in the U.S. who ship abroad report that approximately 5 percent of their revenue comes from foreign orders.
These findings were reported in the recently released Shop.org/Forrester Research report, State of Retailing Online 2010: Key Metrics, Multichannel & Global Strategies.
The report also revealed that 37 percent of online retailers surveyed require customers to ship items to a returns center in the retailer’s country of origin, and 12 percent have an international returns center located in their own country to handle foreign returns.
Other findings from the report include the following:
- 54 percent of respondents said they've seen increases in conversion rates versus 2009;
- 27 percent have seen increases in units per transaction, with 47 percent experiencing a lift in average order value;
- 45 percent of respondents reported an increase in repeat customer rates; and
- 31 percent of respondents have seen a decrease in their shopping cart abandonment rates.