Ecommerce is one of the fastest growing sectors, a market that will exceed 3.5 trillion euros by 2020, according to Statista.Romania is no exception, with a market that is constantly growing and rapidly pursuing global trends.
"PayU estimates that this year, the e-commerce market in Romania will exceed 4.5 billion euros. Romanian traders must be aware of new trends, cross-border online trading being the most important of them. From our experience, this is how they can increase their sales to 50% and the emerging markets that are the world's biggest growth are definitely a destination to take into account, "said Marius Costin, Country Manager, PayU Romania.
Cross-border online trade: from "optional" to "mandatory"
In a few years, cross-border online shopping will represent one third of all sales on the Internet, according PayU. As the 2018 online shop barometer shows, last year, around 6 out of 10 online European buyers purchased products from a site outside the country, and 76% said their experience was very good. Online shopping in other countries is definitely a trend and more and more traders are following. A recent study shows that 66% of companies intend to develop their business by accessing new markets around the world.
"Big players in the e-commerce market are already expanding their business at international level, even on the Romanian market, becoming strong competitors for local stores. We can only expect an increase in this trend, especially since the new regulations, such as the removal of unjustified geoblocation from the online environment, come to support this trend. Online stores in Romania that have already expanded their business outside the country have achieved very good results. PayU is ready to help Romanian merchants reach this global vision, including the global PayU HUB platform, which guarantees access to 2.3 billion potential consumers and over 300 payment methods. We can help them prepare payment formats in local languages, give access to payment in different currencies and allow consumers to pay for what they have in their pocket.This is reflected in the rate of conversion of that online store, "adds Marius Costin.
Technology to locate your buying experience
From the moment a consumer enters a website, his / her journey must be enjoyable, safe and personalized. Locating customer buying experiences will make the difference between companies, with recent data showing that 41% of consumers have changed the brands they buy because of a lack of personalized approach, and 50% say they did it because of "a buying experience negative ", according to the Accenture report.
What should merchants do? First of all, make sure that their messages and offers are affordable and relevant to local consumers wherever they are - whether they spend their time or social networks, on the mobile or on the desktop. Social networks have become today's modern catalogs and a powerful tool for traders to reach consumers and keep them in the long run.
Also, whether they use AI, VR, visual or vocal searches, it's important to ensure that they invest in that technology that improves consumer buying experience and is suited to their needs, culture, and habits.
Smart Payments That Address Every Client
When the customer has made the decision to buy a product, the checkout process must take place without any effort on his part: be simple, fast and secure.
According to the Baymard Institute, about 70% of buyers are abandoning their shopping cart. Up to 13% will abandon the acquisition if they do not have a local payment method they prefer. The Romanians are accustomed to paying online with the card, while the Poles prefer to pay via pay-per-click links.
On mobile, it's easier to pay with one click. And when you do not have enough money in your account, it is preferable to have the option of using an online credit that allows you either to pay later or to share your online rate. Traders have to make sure that they address each consumer with the right payment method.
"As competition on the market increases, payments can make a difference. Merchants should first and foremost offer a safe and flawless checkout, show local currency prices and provide consumers with the right mix of payment methods" , says Marius Costin.
Legislation and security that stimulate financial innovation
Data confidentiality continues to be one of the most important areas of interest, as Romanian traders still struggle with implementing GDPR in terms of creating a memorable buying experience. Every customer needs to be sure their data is safe, and merchants must comply with PCI-DSS security and data privacy standards, as well as choose partners that meet the same requirements.
With the entry into force of the PSD2 Directive, consumers will gradually have access to a more complex, more secure and diversified online range of online financial services, and traders must have partners that meet these standards.
All FinTech companies, which are licensed payment institutions, will be able to introduce new types of services such as initiating payments and confirming the balance of funds in your account. These solutions are an essential part of PSD2 and can stimulate financial innovation.
The PayU expert, Marius Costin, concludes: "2019 is definitely a year of growth. Being a fast-changing company, such as online cross-border shopping, is the guarantee of success in 2019 and beyond. carefully and wisely choose your partners, always keeping a global view> is my advice to any online store owner. "