Identifying the Impact of Customs and Delivery Charges on Latin American Online Shopping Behavior
In Latin America, e-commerce is poised for explosive growth, but one significant hurdle stands in the way: the high surcharges associated with customs and delivery. The DHL eCommerce Global eShopper Survey 2023 provides insight into how these surcharges are affecting online shopping behaviors in the region and what can be done to mitigate their impact.
The Turn-Off of High Costs
For Latin American consumers, high delivery costs and excessive customs charges are major deterrents. A substantial 59% of Latin American shoppers have abandoned a purchase because of high delivery charges, and 57% are dissuaded from shopping cross-border due to customs charges. These figures illustrate that for a region with a huge e-commerce potential, surcharges are not just a minor inconvenience but a significant barrier to online shopping’s growth.
The Importance of Sustainable and Cost-Efficient Delivery
Sustainability is a priority for Latin American consumers, with 80% emphasizing the importance of environmentally friendly delivery options. This indicates that there is a clear opportunity for businesses to align their practices with the values of their customers. By offering sustainable delivery options that are also cost-efficient, companies can tap into the Latin American market more effectively.
Real-Time Tracking and Peer Reviews
Real-time tracking for cross-border deliveries is valued by 75% of shoppers in the region, underscoring the demand for transparency and reliability in shipping and handling. Moreover, Latin Americans heavily rely on peer reviews, with 95% checking reviews before making a purchase. This reliance on community endorsement highlights the need for e-commerce businesses to maintain a positive reputation and provide excellent customer service to foster trust and encourage purchases.
Reducing Surcharges to Win Sales
The survey’s findings suggest a straightforward strategy for businesses looking to expand their reach in Latin America: cut the surcharges. By reducing customs charges and high delivery costs, companies can attract and retain a captive audience in the region. Addressing these cost-related issues could unlock the full potential of the Latin American e-commerce market, creating a win-win situation for both businesses and consumers.
Conclusion
The Latin American e-commerce market presents a wealth of opportunities for businesses willing to navigate its unique challenges. By understanding the impact of customs and delivery charges on consumer behavior and adapting their strategies accordingly, businesses can foster a more inclusive and robust online shopping environment. As the digital economy grows, reducing surcharges could be the key to unlocking Latin America’s full e-commerce potential, leading to increased customer satisfaction and loyalty.