Author: Andy Mulcahy, Editor, eCommerce Worldwide & IMRG
Last month we tracked a record high for the month of June in the percentage of orders being sent cross-border from UK retailers – at 27% of the total volume1.
We now have the data for July in – the first full month of data since the EU referendum result (23 June) – and this upturn in cross-border volumes has been maintained, with July also featuring a record high for that month (27% of the total).
The likely reason behind this upturn is fairly straightforward – the value of sterling plummeted against the euro and the dollar following the result, so shoppers in Europe and the US are suddenly finding that all products available on UK retail websites are essentially being offered at discounted rates compared to how much they would have cost before the vote.
So – depending on what happens with the value of sterling over the coming months and cross-border shoppers’ appetites for continuing to make purchases – we may be seeing the start of a sustained trend.
There was one interesting difference this month. In June, the average order value (AOV) for cross-border orders dropped sharply on the previous month – as we might expect due to the increased strength of other currencies against the pound – but in July the AOV rose against its June position. One explanation for this would be that cross-border shoppers initially made a snap purchase or two, but are now loading their baskets up with more items to take full advantage of the opportunity to grab a bargain - something for online sellers to be aware of.