43% of Consumers Deterred by Hidden Costs When Shopping Internationally
Research shows that 43% of North American consumers abandon their purchases due to hidden tariffs and taxes in cross-border shopping. Lack of cost transparency, uncertain logistics timing, and complex return processes are the three main barriers to cross-border conversion. Sellers who wish to improve conversion rates in international markets must provide clear landed cost displays at the checkout stage.
What are the key facts?
- 1Reason for abandonment: hidden tariffs and taxes
- 2Affected proportion: 43% of North American consumers
- 3Core pain points: cost transparency, complex returns
What happened?
A report by Landmark Global indicates that despite consumer interest in international brands, hidden costs lead to significant order abandonment before checkout. 43% of respondents stated that the lack of transparency regarding tariffs and taxes is their primary barrier to cross-border shopping. This is particularly important in cross-border e-commerce sales, where sellers need to focus on how to clearly present all potential costs to consumers during the checkout process to reduce abandonment rates. Furthermore, logistics timing and the complexity of return processes also need to be effectively managed to enhance the shopping experience, thereby increasing consumer purchase willingness.
What does this mean for cross-border sellers?
Optimizing the tax estimation feature on the checkout page can significantly reduce abandonment rates and enhance consumer trust. Additionally, attention should be given to simplifying the return process to avoid losing potential customers due to complex handling procedures.