We have analyzed several commonly used online and offline payment methods in cross-border e-commerce. Next, let’s discuss the issue of payment method selection. As can be seen from the above, different payment methods have their own characteristics and disadvantages. So how can cross-border e-commerce companies choose a payment method that is more suitable for them, so as to achieve a safe, convenient and cheap effect in transactions? Let’s analyze it from three aspects.
11.2.1 Consider the payment habits of different countries
When choosing a payment method based on the target market, three issues should be considered: first, what are the products of cross-border exports; second, which countries and regions have a large demand for these products; and third, which consumers are used to using which payment method.
Take the export of Chinese goods through cross-border e-commerce platforms as an example. The export commodity market mainly includes Germany, the United States, the United Kingdom, Russia, Brazil, Australia, and neighboring countries such as Japan and South Korea. For example, the US market is relatively large, so the product demand must be analyzed first.
The statistical data on the demand and final transaction of Chinese export goods from various countries compiled by the cross-border e-commerce platform show that in the United States, clothing and accessories rank first, followed by mobile phones and accessories, jewelry, jewelry, watches, computers and electronic consumer products.
In addition, a survey result also shows that British consumers prefer to buy air tickets online, German consumers focus on home electronic products, Brazilian consumers prefer computer hardware, the North American market has demand for Chinese textiles, and the European market has demand for bicycle parts and accessories.
In different regions, local consumers have different choices for payment methods. For example, the United States is a region with a relatively complete credit card mechanism, and consumers there tend to choose credit cards when choosing payment methods, while Brazil and Russia prefer to use localized payment methods.
Therefore, after finding the target market for the product, it is also very important to analyze the payment habits of consumers there, otherwise when consumers first contact, they may lose orders due to unfamiliar payment methods. The following can use a small case to illustrate the importance of choosing a payment method based on the target market.
A cross-border clothing industry focuses on the online settlement of European clothing, but after the whole process, they found that the order conversion rate is not high, the payment success rate is just over half, and there are many shopping cart abandonment phenomena.
Soon, customer acceptance and payment efficiency were significantly improved, and the order conversion rate increased from just over half to over 80%.