A Forrester Consulting

Thought Leadership Paper

Commissioned By FedEx

Seizing The Cross-Border

Opportunity
How Small And Medium-Size Online
Businesses Can Go Global

December 2014

Table Of Contents
Executive Summary ........................................................................................... 1
Global Shoppers Are Active And Similar In Their Cross-Border Purchase
Behavior............................................................................................................... 2
Logistics, Reputation, And Cost Concerns Curb SME Cross-Border
Competitiveness................................................................................................. 4
Logistics Services And Selling Platforms Help SMEs Capitalize On Their
Natural Strengths ............................................................................................... 7
Key Recommendations For SMEs .................................................................10
Appendix A: Methodology .............................................................................. 11
Appendix B: Supplemental Material .............................................................. 11
Appendix C: Demographics/Data...................................................................12
Appendix D: Endnotes..................................................................................... 14

ABOUT FORRESTER CONSULTING

Forrester Consulting provides independent and objective research-based
consulting to help leaders succeed in their organizations. Ranging in scope from a
short strategy session to custom projects, Forresters Consulting services connect
you directly with research analysts who apply expert insight to your specific
business challenges. For more information, visit forrester.com/consulting.

2014, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited.
Information is based on best available resources. Opinions reflect judgment at the time and are subject to
change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact
are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective
companies. For additional information, go to www.forrester.com. [1-N5M8VX]

Executive Summary
Through trends such as the rapid emergence of China as
the global eCommerce leader and quick growth elsewhere
in Asia and Latin America, online shopping has gone truly
global. The combined online retail market in countries
studied by Forrester is projected to exceed $1 trillion in
2014 and nearly double within four years. These figures
dont include various developing countries and territories
currently experiencing dramatic ascendancy of their online
1
consumer bases.
As domestic markets develop, consumers armed with
various devices and payment methods have become
increasingly familiar with the mechanics and benefits of
shopping virtually. In parallel, the Internet has raised
awareness of new online shopping destinations. Brands and
products not available in their own markets become visible,
desirable, and available. What may seem like a good deal at
home sometimes doesnt look as good when compared with
superior offers from abroad that may not have been
accessible a few years ago. The result is that consumers
around the globe, armed with information and means, are
shopping cross-border, seeking hard-to-find items and
looking for deals. Small and medium-size enterprises
(SMEs) have seized upon this opportunity. For many, crossborder trade has become a highly important revenue stream
too valuable to be ignored. However, in order to succeed in
the competitive online retail market, SMEs must address
logistical and reputational obstacles that their larger
competitors dont face.
Cross-border trade is a large and growing
opportunity for savvy small and medium-size
businesses.
To understand global consumer behavior around crossborder eCommerce, as well as that of SMEs with such
practices, FedEx commissioned Forrester Consulting in
April 2014 to evaluate what is accelerating and slowing
these buying and selling behaviors from both sides of the
transaction. Then, to further explore this topic, Forrester
developed the hypothesis that SMEs face specific
marketing and logistical hurdles in reaching their target
customers around the globe, but they have the opportunity
to tap into this sizable and lucrative market.
In conducting an in-depth survey of 9,006 global online
shoppers, as well as interviews with 34 SMEs with crossborder eCommerce operations in 17 countries and

territories, Forrester found that cross-border shoppers have

consistent and specific needs centered on seller reputation
and logistics as they purchase overseas. Forrester also
found that SMEs that sell cross-border realize they need to
offer services typically associated with larger companies to
overcome the concerns of international customers.
KEY FINDINGS
Forresters study yielded three key findings:

Cross-border eCommerce is a major revenue

opportunity for small and medium-size enterprises.
Online consumers in every corner of the world are
shopping cross-border for physical goods. SMEs are well
positioned to win this business by highlighting their
strengths and leveraging the availability of services that
bridge the competitive gap with larger companies.
SMEs must differentiate by offering unique
merchandise while providing world-class service.
SMEs are in a special position to provide hard-to-find
products and personalized service. At the same time, they
must offer great logistics and assuage concerns about
reputation that their larger competitors address through
scale. The good news is that there are third-party logistics
providers and global/regional online marketplaces that
can help SMEs with these challenges.
Limited variability in global shopper preferences
means SMEs dont need drastically different regional
eCommerce strategies. Shoppers around the world
generally discover the merchants they do business with
through similar methods and seek similar levels of
service, negating the need for multiple overarching
strategies to reach and serve them. Certain consumers,
however, have somewhat varying needs based on factors
such as where they live, what they are shopping for, and
how much they are willing to pay. Agile SMEs can further
expand their cross-border business and delight their
global customers by taking advantage of these market
nuances.

FIGURE 1
eCommerce Has Gone Global

Global Shoppers Are Active And

Similar In Their Cross-Border
Purchase Behavior
Global eCommerce is growing across a variety of regions
and countries, with online buying behavior currently
representing over $1 trillion in sales per year and forecasted
to nearly double within four years (see Figure 1). Through
forces such as rapid growth in emerging markets and the
proliferation of digital channels through which to search for
and engage with businesses, consumers all around the
globe are becoming online shoppers. Beyond the products
and brands consumers know locally, the Internet is
introducing them to new merchants and unique products not
readily available in their own markets. The Internet,
therefore, has unleashed a new global shopping reality: Not
satisfied with what is around the corner or online locally,
shoppers from all corners of the earth are going crossborder seeking hard-to-find items and great deals.
Our surveys comprehensive view of cross-border
purchasing trends across a broad sample of global markets
reveals shopping behavior that, while exhibiting a few
notable regional differences, is remarkably similar. This is
good news for merchants, as consumers in various markets
want generally similar experiences from the businesses they
patronize, and thus going global doesnt require a unique
approach for each market. Specifically, we found that:

Physical items dominate online purchases. Sixtyseven percent of global shoppers conduct at least 10% of
their monthly spending online. More importantly, 57% of
global shoppers reported that more than half of their
online purchases are of physical items shipped to them,
as opposed to digital purchases such as music files and
airline tickets. Clothing and apparel is by far the most
popular physical item consumers buy online, with 61% of
respondents reporting such a purchase, but other
categories have strong showings as well. At least a
quarter of respondents shop for books, consumer
electronics, cosmetics, footwear, appliances, and
computer hardware online. North Americans shop for
video games more than others, while those in the APAC
region are far more likely to purchase food. North
Americans shop online for physical items the most, with
72% spending at least half their online purchasing on
physical items. Even in Latin America, where a relatively
low 44% shop cross-border, online retailers are making
2
notable entries into the market.

Source: Forrester Research Online Retail Forecast, 2013 To 2018 (US),

Forrester Research, Inc., March 21, 2014; Forrester Research Online
Retail Forecast, 2013 To 2018 (Western Europe), Forrester Research,
Inc., April 28, 2014; Forrester Research Online Retail Forecast, 2014 To
2019 (Asia Pacific), Forrester Research, Inc., October 14, 2014; and
Forrester Research Online Retail Forecast, 2013 To 2018 (Latin
America), Forrester Research, Inc., December 12, 2013

Cross-border shipments are a significant part of

global eCommerce. Global shoppers arent just buying
physical items online theyre buying many of those
items cross-border. In fact, 82% of global respondents
reported making an online purchase from a merchant
outside their home country. These rates vary minimally
across regions (see Figure 2). They demonstrate some
fluctuation across countries, with 90% of Canadians
reporting purchasing cross-border compared with a low of
59% of Japanese. On average, customers reported
spending about $300 on cross-border items in a given
3
year. The merchants we interviewed reported supporting
statistics: About 80% of my business is international. I
always intended to sell internationally because theres a
relatively limited market [at home] for the items I sell, said
the owner of a small collectable and memorabilia shop in
Australia. The owner of a small South Korean clothier
concurred: We export about 70% of our orders. I started
the business in 2010 with the intent of selling overseas
because I saw a market opportunity to find quality local
products and introduce them to foreign countries online.

Primary online shopping destinations are the US,

China, and the UK. While shoppers buy cross-border
from all countries included in our study, the US, China,
and the UK are the top three exporters of online
purchases. Ninety-one percent of Canadians are making
cross-border purchase orders from the US, with Latin
American shoppers sourcing from the US as well,
including 68% of Brazilians. Europeans have a tendency
to order within the EU, although UK businesses ship
primarily to the US and Australia.
As opposed to typical European behavior, the main
countries ordering from China are not necessarily
geographically driven. The No. 1 source of Chinese
orders is Hong Kong (where 68% purchase from China),
followed by Brazil (where 63% purchase from China), and
then the US (where 52% purchase from China). Carrying
on this globally dispersed sourcing pattern within APAC,
shoppers in Japan and Korea purchase more frequently
from the US than they do from their APAC neighbors.

Discovery is primarily through online search. With

shoppers making so many cross-border purchases, how
do they discover merchants and products? Search is the
overwhelmingly preferred discovery method, used by 58%
of global shoppers, followed by online ads (39%) and
word of mouth (33%) (see Figure 3). Search is less critical
in Latin America, where other digital channels play a

larger role than in other regions. In fact, online

advertisements are the primary discovery method in Latin
America, with social media and email also demonstrating
levels of influence not seen elsewhere. In APAC, there
are nuances by market with online advertisements
favored by China (53%), but less so in Japan (27%) and
Australia (30%).
FIGURE 2
Most Global Consumers Have Shopped CrossBorder

Base: 9,006 global online shoppers

Source: A commissioned study conducted by Forrester Consulting on
behalf of FedEx, September 2014

FIGURE 3
Shoppers Discover International Merchants Primarily Through Search And Other Digital Methods

Base: 9,006 global online shoppers

Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

Logistics, Reputation, And Cost

Concerns Curb SME Cross-Border
Competitiveness
As consumers seek good deals around the globe, their
biggest concerns and poorest experiences involve logistics,
such as receiving the item ordered in a timely and costeffective manner. A second major area of concern is
reputation. Cross-border shoppers seek out specific
products rather than particular online merchants, but they
want to do business with companies that they trust will
provide smooth transactions and delivery of authentic
goods.

Shipping-related concerns are paramount when

considering cross-border purchases. Consumers have
a variety of concerns with cross-border purchases,
regardless of whether or not theyve actually experienced
them firsthand, ranging from shipping cost to transaction
fraud. Shipping and logistics, however, are top of mind, as
consumers cited shipping cost (51%) and long delivery
time (47%) as the top two concerns when considering
cross-border purchases (see Figure 4). North Americans
are more concerned than shoppers in other regions about
both costs and delivery (63% and 53%, respectively),
while Latin Americans are concerned with transaction
security (50%) and damaged products (50%). What
constitutes a long delivery time is dependent on customer

FIGURE 4
Logistics Leads The List Of Perceived And Real Cross-Border Challenges

Base: 9,006 global online shoppers

*Base: 6,148 global online shoppers
Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

expectations, but most shoppers expect cross-border

delivery within one to two weeks of purchase. On the high
end of the spectrum, 45% of Brazilians, 36% of
Australians, and 33% of Americans expect cross-border
shipments to take two weeks or longer. Some merchants
also expressed frustration at fulfilling orders on time. As
the owner of a small Italian furniture company described
it: The transit time can change depending on the time of
year, depending on the destination . . . if [customers] buy
and I say you need to wait eight days before delivery,
people will say, You guys are crazy!

Many cross-border shipping issues are based on

experience. Long delivery times and high shipping costs
are the two main problems that shoppers have
experienced when making cross-border purchases.
Shoppers in Latin America have the most issues with long
delivery times, especially in Brazil (52%). Delivery time
issues plague APAC, as well, with Koreans (46%) and
Singaporeans (44%) also experiencing such issues at
particularly high rates. High shipping costs are also a
worldwide impediment, particularly in India (49%),
Canada (43%), and Singapore (41%). At a regional level,
North Americans experience the most problems with high
shipping costs (39%).
Small and medium-size retailers also struggle with long
delivery times. A small musical instruments company in
Germany commented: In some countries, the delivery

time is not as fast as we want it to be. It's hard to deliver

to some areas. It can take too long to deliver or even find
the address.

Cross-border shoppers prefer multibrand retailers

and online marketplaces. As a result of their concerns,
cross-border shoppers prefer to purchase from wellknown major multibrand retailers and global online
marketplaces. In fact, the majority of respondents in every
country we surveyed ranked major multibrand online
retailers or marketplaces as their first choice out of five
business types for cross-border purchases. Independent
SME retailers (i.e., those not affiliated with an online
marketplace) ranked fourth, behind brand or manufacturer
websites and brick-and-mortar retailers (see Figure 5).
Shoppers in APAC are particularly reluctant to shop
directly with SME retailers, with 57% of respondents
ranking this category as their last choice. The US also
demonstrates this hesitation, with the largest portion of
respondents (28%) ranking SME retailers fourth.
As an antidote to this hesitancy on the part of shoppers,
many SME retailers have embraced marketplaces,
recognizing the value to customers and the convenience
they offer their own operations. One supply chain and
logistics manager for a small printer and publisher in the
UK said: We use [marketplaces] and stick with them
based on their presence, efficiency, and reliable service. I
find them to be understanding and straightforward.

FIGURE 5
Global Cross-Border Shoppers Strongly Prefer Online Marketplaces, With SMEs Trailing

Base: 6,148 global online shoppers

Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

SMEs face reputational hurdles in addition to

logistics issues. Shoppers shy away from SME retailers
for many reasons: reputation, logistics, price, and quality.
Reputation verification is the primary concern for global
shoppers (49%) and is even more pronounced in Latin
America, where 54% of respondents indicated difficulty
with verifying seller reputation. For global shoppers, the
No. 2 reason for SME aversion (42% of respondents) is
the lack of reputation or recognition (see Figure 6).
Logistics are still a concern when shopping from SMEs,
with returns and shipping costs identified as the No. 3 and
No. 4 challenges. For North America, shipping costs
continue to be a challenge, with 42% of shoppers citing
this as a barrier to purchasing from SMEs.
Duties and taxes curb cross-border activity. While
shipping cost and delivery time are top of mind with
shoppers, duties and taxes are also a factor. Thirty-five
percent of global respondents cited high duties/taxes as a
concern for cross-border shopping, with the most
significant numbers coming from North American
shoppers. More specifically, 62% of Canadians believe

duties and taxes are an issue higher than in any other

country and many have experienced this with past
cross-border purchases. Hesitation resulting from a fear
of high duties isnt limited to one region, however.
Germany and Brazil tied for the second highest level of
concern at 48%.
The impact of duties and taxes was even more
pronounced when we explored creating a standard dutyfree threshold. Fifty-six percent of global respondents
would increase their cross-border shopping if purchases
under US$200 (localized) were duty free (see Figure 7).
Regionally, the hypothetical limit had the greatest impact
on Latin American shoppers, with 80% of those
respondents predicting an increase in their cross-border
shopping. At the country level, 80% percent of Chinese
respondents and 71% of Indian respondents indicated the
same. How much would they up their spending? Global
respondents estimated increases ranging from 26% to
75%. Twenty-two percent of Latin American shoppers
anticipate a staggering 90% increase over current
spending, compared with 13% of global shoppers.

FIGURE 6
SMEs Face Reputation Perception Issues In Addition To Logistics Concerns

Base: 9,006 global online shoppers

Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

FIGURE 7
Duties And Taxes Curb Cross-Border Shopping Volume

Base: 9,006 global online shoppers

*Base: 5,053 global online shoppers
Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

influential or influential. Sixty-seven percent of

respondents also believe item uniqueness is either very
influential or influential in buying from international
markets (see Figure 8). In North America, for instance,
where shoppers are often interested in handicrafts, art,
and jewelry from other parts of the world, uniqueness of
items is even more influential than in other regions. The
Chinese, concerned about quality of products in their own
country, are big buyers of baby products from Japan and
other countries.

Logistics Services And Selling

Platforms Help SMEs Capitalize On
Their Natural Strengths
Despite the concerns outlined above, the situation for SMEs
is encouraging. SMEs have an ability to nimbly adjust
merchandise to provide the unique or locally unavailable
goods that international shoppers seek. To address the
logistics and reputational concerns, the merchants we
interviewed, along with our consumer survey data, revealed
some clear best practices:

Seize on advantages of item availability and

uniqueness. SME retailers can differentiate themselves
by highlighting the uniqueness of the items they offer.
Shoppers are influenced by a variety of factors when
making cross-border purchases, but the most influential
reason cited is that the item is not available in their home
country, with 75% of respondents considering this very

SMEs have the opportunity to emphasize this item

uniqueness and availability when targeting global
consumers. As the owner of a German musical
instrument shop stated, We decided to sell internationally
to get higher revenue due to the fact that what we offer is
not available anywhere else, so theres no direct
competition.

Tackle logistics and reputation head-on. While crossborder logistics may seem complex, resolving logistics

FIGURE 8
Cross-Border Shoppers Seek Items Not Available To Them Locally At Competitive Prices

Base: 9,006 global online shoppers

Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

and reputation concerns represent the top eight of the 15

most influential reasons to shop with a cross-border
merchant (see Figure 9)

Leverage shipping and logistics expertise. Many of the

successful merchants we interviewed work closely with at
least one major logistics company. Such providers can
provide global coverage, delivery speed/consistency, and
competitive cost.
What really distinguishes the preferred providers, though,
is the service and support in calculating taxes and duties,
filling out paperwork, allowing a merchant to bill upfront
for duties, and simplifying cross-border returns.
They do everything, said the sales and customer service
manager for a Puerto Rican beverage company about her
firms logistics provider. Every time I have worked with
[the logistics provider], everything has gone well. Some
merchants also see such providers as critical to their
expansion plans. As one supply chain manager at a UK
printing and publishing company noted of her international
documentation: This is something you have to make sure

is done absolutely right. . . . its becoming very

complicated. Every country has specific taxes, currencies,
payments, etc. So Im looking for somebody who may be
able to facilitate those requirements.

Leverage trusted marketplaces to placate reputation

concerns. Successful merchants often maintain their own
domestically oriented site while also listing at least some
of their merchandise on global marketplaces. In fact, out
of the 34 SMEs we interviewed, 24 leveraged at least one
of these sites. Among the benefits cited are global reach,
language localization, and active marketing in-country
through search engine optimization (SEO) and search
engine marketing (SEM). Additionally, and very
importantly, they have reputation systems and often buyer
protection to build trust with shoppers. For SMEs,
reputation is paramount for consumers to become
comfortable with purchases, and the global online
marketplaces offer a quick way to establish and improve
brand reputation. Specifically, a marketplace allows SMEs
to sell through a trusted, recognized partner and generate
positive consumer reviews. We use them because its a

FIGURE 9
SMEs Must Address Logistics And Reputation Concerns In Addition To Leveraging Their Strengths

Base: 9,006 global online shoppers

Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

good way to reach further with few risks, described the

owner of a small German music supply shop. We can
reach many more potential customers with no
complications; its very straightforward. The sole
proprietor of an Australian collectibles retailer concurred:
I have my page set up for international visibility. I like the
reach it gives me and the fact that I get reviewed.

Appeal to the needs of global customers. While global

shoppers may generally behave in similar ways, there are
also clear differences among and within regions. North
American shoppers, for instance, look to SME retailers for
specialty and unique items: 51% of Americans versus
34% of global respondents cited the availability of
specialty/hard-to-find items as a reason for shopping
cross-border. In another example, Europe, the Middle
East, and Africa (EMEA) shoppers are less concerned
with shipping times and costs, with 44% indicating

concern with long delivery times versus 47% globally.

Residents of certain APAC countries view SMEs as
having relatively low costs. For example, 57% of
Japanese and 56% of Australians indicated such a belief,
as opposed to 50% of all respondents. Finally, social
media and reputation factors in online global shopping are
more important in Latin America than in any other part of
the world, with 41% of Latin Americans using social media
to discover international merchants versus 31% globally.
Latin Americans also have a significantly higher fear of
transaction fraud, a consideration for any merchant
seeking to penetrate that market.

10

Key Recommendations For SMEs

SMEs have a significant opportunity through international business to expand their market and grow revenue. These
next steps can set you on the path to success:

Study your current international traffic and business. A large number of merchants interviewed started their
cross-border business unintentionally, as international customers found them through easily accessible methods
such as web search and online ads. Mine the traffic coming to your website to understand the natural demand for
your goods and inform future priorities.
Learn from your peers. Look to other SMEs to understand what they offer internationally. Explore competitive
sites and pages to understand the logistics offerings and how the purchase process works. Look to see if you can
also find them on an online marketplace. Identify an interesting peer from the same industry or a different one
and call them up; merchants are generally open about discussing the lessons theyve learned when expanding
internationally.
Decide whether to go broad or narrow. Are you going to try to serve many markets, or focus on a few? Does
your merchandise have broad appeal or is it more attractive to certain countries? Are there logistics
considerations that would make certain markets more difficult to serve or, for instance, process returns? If you are
focusing on a few markets, consider whether its worth investing more in services such as website translations,
web advertising, and broader payment offerings.
Focus on limited geographies at first to test your approach and partners. Even if you opt for a broad global
strategy, its best to make sure youve figured out a few geographies before expanding further. Each country will
have its specific requirements and complexities. Ensuring you can meet your customers expectations in the first
countries before moving on increases your chances of success.
Identify the right partners based on your strategy and needs. Your international strategy and type of
business will dictate your needs from partners. Think about services and offerings that will make a difference to
the customers you want to reach. For instance, if you want to sell to China, youll need to consider a marketplace
with penetration in that specific market. Similarly, if you want to be able to offer return services to your customers,
you will need a logistics partner that can handle international returns smoothly and efficiently.

Many other small and medium-size businesses are already profiting from cross-border trade how will you?

11

Appendix A: Methodology
In this study, Forrester conducted an online survey of 9,006 global online consumers and interviewed 34 small and mediumsize businesses with international eCommerce operations in Australia, Brazil, Canada, China, Colombia, France, Germany,
Hong Kong, India, Italy, Japan, Mexico, Puerto Rico, Singapore, South Korea, the UK, and the US to evaluate the current
attitudes toward and experiences with cross-border shopping and order fulfillment, including the challenges and concerns
faced by both groups in expanding these practices. Consumer survey participants included those aged 18 or older who have
ordered a physical item shipped to themselves or another recipient over the Internet within the past 12 months. Interviewed
business stakeholders included those at companies with fewer than 500 employees and an eCommerce practice that
consists of at least 5% of orders shipped to other countries. Questions provided to consumer participants asked about their
experience with and concerns around purchasing physical items from other countries over the Internet and factors that may
increase their frequency of doing so. Small and medium-size business interviewees were asked about the factors leading to
their decisions to start an international eCommerce business, their experiences and challenges with fulfilling such orders,
and the factors that may enable them to expand this practice. Consumer respondents were offered a small incentive
determined and administered by their respective survey panels. Interviewees were offered a small monetary reward, variable
by country, as a thank you for their time. The study began in July 2014 and was completed in September 2014.

Appendix B: Supplemental Material

RELATED FORRESTER RESEARCH
Asia Pacific Online Retail Forecast, 2013 To 2018, Forrester Research, Inc., November 26, 2013
European Online Retail Forecast, 2013 To 2018, Forrester Research, Inc., May 29, 2014
The Evolution of Global eCommerce Markets, Forrester Research, Inc., March 28, 2014
The Global eCommerce Opportunity, Forrester Research, Inc., March 28, 2014
Five Global Marketplaces All Brands Must Know, Forrester Research, Inc., June 9, 2014
Identifying Partners To Help Streamline Global Expansion, Forrester Research, Inc., September 17, 2013
International Shipping Solutions For US Online Retailers, Forrester Research, Inc., September 17, 2013
Latin America Online Retail Forecast, 2013 To 2018, Forrester Research, Inc., December 17, 2013
Take Your eCommerce Business Global, Forrester Research, Inc., March 13, 2014
US Online Retail Forecast, 2012 To 2017, Forrester Research, Inc., March 13, 2013

12

Appendix C: Demographics/Data
FIGURE 10
Consumer Survey Demographics

Base: 9,006 global online shoppers

Note: Percentages may not total 100 because of rounding.
Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

13

FIGURE 11
SME Interview Firmographics

Base: 34 global SME eCommerce decision-makers

Source: A commissioned study conducted by Forrester Consulting on behalf of FedEx, September 2014

14

Appendix D: Endnotes
1

Forrester estimates the combined 2014 online retail sales of the US, UK, Germany, France, China, India, Japan, Australia,
Brazil, Argentina, and Mexico at just over US$1 trillion, and projects this figure to rise to $1.84 trillion by 2018. Source:
Forrester Research Online Retail Forecast, 2013 To 2018 (US), Forrester Research, Inc., March 21, 2014; Forrester
Research Online Retail Forecast, 2013 To 2018 (Western Europe), Forrester Research, Inc., April 28, 2014; Forrester
Research Online Retail Forecast, 2014 To 2019 (Asia Pacific), Forrester Research, Inc., October 14, 2014; and Forrester
Research Online Retail Forecast, 2013 To 2018 (Latin America), Forrester Research, Inc., December 12, 2013.
2

In Brazil, by far Latin Americas largest online market with $19 billion annual spend, online shopping has extended into the
middle class. At least one major American retailer has launched eCommerce operations in Mexico, and a German clothing
manufacturer recently went live with an eCommerce site in Colombia. Source: The Global eCommerce Opportunity,
Forrester Research, Inc., March 28, 2014.
3

Global survey respondents reported spending an average of $300.10 annually on cross-border purchases. APAC
respondents spend an average of $347.87; EMEA respondents spend an average of $269.34; North American respondents
spend an average of $368.21; and Latin American respondents spend an average of $232.85. Averages were calculated
based on midpoints of spend ranges in USD from which respondents were asked to estimate their average cross-border
spend.