Cross-border transactions will reach $156 trillion in 2022! Free shipping is awesome...

The increase in the penetration rate of smartphones and the continuous development of e-commerce platforms have led to a growing number of online consumers in Europe. The continuous optimization of mobile payment methods such as various digital wallets has provided great convenience for people's online shopping.

According to foreign media data, by 2022, Europe's cross-border transaction volume will reach 156 trillion US dollars ! The continuous increase in cross-border transaction volume is inseparable from the continuous expansion of smartphone usage. According to reports, the current smartphone penetration rate in Europe has reached 83% , and people use smartphones for online shopping.

In addition, the outbreak of the COVID-19 pandemic in the past two years has also posed a direct threat to offline store sales, especially in European countries, where consumer groups have shifted from offline to online, prompting a continuous increase in online transaction volume .

At the same time, due to the implementation of epidemic prevention and control measures in some local areas during this period, people were restricted from going out for social activities. However, online social media such as TikTok is constantly developing and gradually becoming a very popular online social platform in many regions around the world.

In addition to sharing interesting daily life on social media, people also share a variety of practical items. The large number of young users in particular like all kinds of new things and are gradually leading various online shopping trends on social media .

Moreover, relevant surveys have shown that free delivery is a key factor driving European consumers to continue shopping online . The free delivery service provided by merchants makes consumers feel convenient, and there are many types of goods available for online shopping, so door-to-door delivery can save time.

Data shows that in 2016, about 37% of merchants offered free delivery . However, with the continuous development of cross-border e-commerce, the group of merchants offering free delivery has gradually expanded. By 2021, the proportion of this group has reached more than 59% . The continuous development of mobile payments has further accelerated people's pace of online shopping.

Looking back at domestic online shopping consumption phenomena, we can also see that consumers are very concerned about whether the merchant provides free delivery. Sometimes, even if the store offers very large discounts, if the merchant does not provide free delivery, the consumer’s shopping experience will be greatly reduced, and may even directly threaten whether the consumer will eventually place an order.

European cross-border transaction volume

Free Shipping Factor is Key