Asia Pacific online shoppers are prioritizing flexible delivery options and free returns when making cross-border purchases, according to key insights from the global DHL eCommerce 2024 Online Shopper Trends Report.
The two chapters—"Cross-border buying" and "Delivery and returns"—share that the region's shoppers continue to buy online from overseas, expect next-day delivery and can track their parcels in real-time.
However, survey respondents also cite fear of online fraud despite the enthusiasm for cross-border e-commerce.
"Asia Pacific consumers are driving demand for cross-border shopping like never before. This means that there is a tremendous opportunity for businesses to grow internationally if they sell and engage effectively," said Pablo Ciano, CEO of DHL eCommerce.
"Specifically, with the rise of on-demand business models influencing today's digital shoppers, 'speed' and 'choice' are everything. By addressing key consumer concerns such as transparent delivery times, flexible returns, and fear of fraud, retailers can capture the growing market," he added.
Expectations on delivery times, real-time tracking
DHL noted that the online shopping landscape continues to evolve, and with the rise in social commerce, online consumers do not lack options and seek more control over their purchases.
"They want multiple delivery options and the ability to track their parcels in real-time," the report said.
The report found that more than two-thirds of online shoppers in Asia Pacific agree that next-day delivery is important to them, with 74% in Thailand and 72% in India saying so.
When it comes to delivery preferences, nine in 10 shoppers in India (89%), Malaysia (89%), and Thailand (94%) favour home delivery, reflecting a strong preference for convenience.
However, the report said demand for alternative delivery options is also rising, especially when the item is already out for delivery.
"Most online purchasers claim it is important to have the option of re-directing their parcel to a safe place, neighbour, parcel locker, pick-up point or changing the delivery day as it enhances flexibility and convenience, "DHL's eCommerce 2024 Online Shopper Trends Report further found.
Additionally, 86% of consumers in Asia Pacific expect end-to-end tracking on international orders, underscoring the need for real-time visibility and control in the delivery process.
DHL noted that, in fact, survey respondents from the region rate "quick delivery time" and "real-time tracking" as the top two factors key to improving their delivery experience.
Free returns to serve as a competitive edge
Meanwhile, as the Asia Pacific reverse logistics market size is predicted to be worth around US$1,970 billion by 2033, at a CAGR of 13.3% from 2024 to 2033, DHL said companies must also equally prioritize and enhance the returns experience for customers.
"The report notes that free returns are increasingly influencing Asia Pacific shoppers when deciding where to buy, as 43% of consumers in the region will only shop with retailers that offer free return options," DHL said.
It added that India also tops the global chart for saying that free returns are the most important, with 67% stating that they will only buy from online shops that provide free returns.
In addition, 67% of Asia Pacific online shoppers prefer that a return label be included in their parcel if they need to return an item. Thai and Indian shoppers, in particular, have a high expectation of this, as 71% and 70% of them claim so.
"To stay ahead of the competition in a fast-changing cross-border e-commerce space, businesses must have flexible and cost-effective return policies if they want to build customer loyalty and encourage repeat purchases," DHL said in the report.
Opportunity for growth, fraud issues
DHL noted a "huge opportunity" in international online shopping, but the fear of fraud also needs to be addressed.
The report said digital payments are enabling online consumers to enjoy a more seamless cross-border shopping experience. For businesses in the region, this presents a clear opportunity to expand into global markets by offering the products and services that international consumers are actively seeking.
Across the Asia-Pacific region, close to four in five (76%) buy from online shops based in other countries at least once a month, and 30% do so at least once a week. India leads the world in cross-border purchases, with 38% of Indian shoppers making international purchases at least once a week.
This trend is echoed across Malaysia (80%), Thailand (80%), China (75%), and Australia (75%), where a significant number of consumers also buy from overseas at least once a month.
DHL said this frequency is expected to escalate, with 37% of the respondents indicating that they will buy more online from non-local shops in the next 12 months.
"However, the report findings also reveal that to capture this demand, businesses need to prioritize security and transparency to reassure customers. Despite the enthusiasm for cross-border shopping, fear of fraud remains a barrier for at least one in two Asia Pacific shoppers," the report said.
It noted that Malaysians are the most concerned about fraud risks, which include worries about the authenticity of sellers and the security of transactions.
DHL said these concerns deter consumers from making more international purchases. "To overcome these obstacles, businesses must prioritize secure payment systems, transparent shipping information, and reliable delivery processes to build trust and encourage repeat purchases."
