Asia Pacific online shoppers are prioritizing flexible delivery options and free returns when making cross-border purchases, according to the DHL eCommerce 2024 Online Shopper Trends Report. The report’s key findings, detailed in two chapters – “Cross-border Buying” and “Delivery and Returns” – reveal that shoppers in the region continue to favor overseas purchases but have growing expectations for next-day delivery and real-time parcel tracking. However, despite their enthusiasm for cross-border e-commerce, concerns over online fraud remain a significant barrier.
Pablo Ciano, CEO of DHL eCommerce, emphasized the region’s importance in driving global cross-border shopping growth. “Asia Pacific consumers are fueling demand for cross-border shopping like never before, creating a significant opportunity for businesses to expand internationally if they can meet customer expectations. Speed and choice are critical in today’s on-demand business models. By addressing concerns around transparent delivery times, flexible returns, and fraud prevention, retailers can tap into this expanding market,” he said.
Growing Expectations for Delivery and Real-Time Tracking
As social commerce rises, online consumers now demand more control over their purchases, including multiple delivery options and real-time tracking. Over two-thirds of online shoppers in Asia Pacific, including 74% in Thailand and 72% in India, view next-day delivery as essential. Additionally, 89% of shoppers in India, Malaysia, and 94% in Thailand prefer home delivery for convenience. There is also increasing demand for flexible delivery options, such as redirecting parcels or changing delivery dates for enhanced convenience.
The report also reveals that 86% of consumers in Asia Pacific expect end-to-end tracking for international orders, with “quick delivery time” and “real-time tracking” being top priorities for improving their delivery experience.
Free Returns Offer a Competitive Advantage
The Asia Pacific reverse logistics market is projected to be worth USD 1,970 billion by 2033, growing at a CAGR of 13.3% from 2024 to 2033. Free returns are becoming a crucial factor for consumers when choosing where to shop, with 43% of shoppers in the region only purchasing from retailers that offer free returns. India leads globally, with 67% of its online shoppers stating that free returns are a deciding factor. Moreover, 67% of Asia Pacific shoppers prefer return labels included in their parcels, with high demand from Thai (71%) and Indian (70%) consumers.
To stay competitive in the evolving cross-border e-commerce space, businesses need to adopt flexible and cost-effective return policies to foster customer loyalty and drive repeat purchases.
International Shopping Opportunities and Fraud Concerns
Digital payments have made cross-border shopping more seamless, presenting businesses with clear opportunities to expand globally. In Asia Pacific, 76% of consumers make overseas purchases at least once a month, and 30% do so weekly, with India leading at 38%. Other countries, including Malaysia (80%), Thailand (80%), China (75%), and Australia (75%), also see frequent cross-border shopping.
However, fraud concerns continue to deter consumers, with over half of Asia Pacific shoppers expressing fears about fraud, particularly in Malaysia, where worries around seller authenticity and transaction security are high. To capture the growing demand, businesses must prioritize secure payment systems, transparent shipping information, and reliable delivery to build trust and encourage repeat purchases.
The DHL eCommerce 2024 Online Shopper Trends Report provides businesses targeting the Asia Pacific market with insights into consumer behavior and preferences, surveying shoppers in key markets like Australia, China, India, Malaysia, and Thailand. To succeed, businesses must enhance their online presence, refine their delivery experience, and build trust with consumers in this fast-growing region.
