Hidden costs prevent 43% [1] of U.S. and Canadian consumers from completing international e-commerce purchases, according to a new industry index.
This trend highlights a significant barrier to global trade expansion as shoppers increasingly prioritize price transparency over the appeal of international goods. The findings suggest that the friction associated with cross-border logistics continues to outweigh the desire for a wider product selection.
Landmark Global, a cross-border e-commerce delivery and international logistics company, released the North America Cross-Border Confidence Index to quantify these deterrents [1]. The data comes from a survey of 2,000 [1] U.S. and Canadian consumers.
The report identifies three primary drivers of pre-purchase drop-off: hidden costs, delivery uncertainty, and friction regarding returns [1]. These factors create a lack of confidence that prevents shoppers from finalizing transactions when dealing with foreign retailers.
While the desire for international shopping remains, the index shows that the lack of clear, upfront pricing remains a critical pain point [2]. The logistics company said these obstacles create a gap between a consumer's intent to buy and the actual completion of the sale.
The survey was conducted across the North American market, with the findings released from La Mirada, California [1]. The data emphasizes a need for more integrated logistics solutions that provide total cost transparency at the point of checkout to capture lost revenue.
“43% of U.S. and Canadian consumers are deterred from shopping internationally because of hidden costs”
The data indicates that the primary hurdle for international e-commerce is not a lack of demand for products, but a failure in the logistical user experience. For retailers to capture the 43% of the market currently deterred by hidden fees, they must shift toward 'landed cost' models where taxes and duties are calculated and paid at checkout rather than upon delivery.
