New research from commerce marketing company Bronto Software has revealed that although 77% of US consumers are open to purchasing outside of the US, only 27% currently purchase from UK-based brands, despite the growth of cross-border commerce.

The study polled 4,005 consumers across the UK, the US and Australia.

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It indicates that for UK-based brands looking to drive revenue growth through cross-border commerce, the US offers immense opportunities, but brands should understand and offer what consumers demand.

“Online retail makes it easier to reach consumers globally, but only if retailers understand their concerns and desires."

The findings indicate unique merchandise (55%) at better prices (61%) than the home market are primary drivers that will encourage consumers in the US to explore for products outside their domestic market. Therefore, UK-based retailers must address the obstacles putting US consumers off.  

Retailers also need to understand and address obstacles that prevent customers from making cross-border purchases.

The study finds that 67% of consumers in the US believe that the largest barrier to purchasing from other countries is shipping costs.

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Consumers in the UK and Australia also consider this as the main obstacle to cross-border shopping, with 62% and 75% citing this a reason, respectively.

Of all three markets, US-based consumers express higher levels of concern than  those in UK or Australia on all the issues that put them off buying from an overseas retailer.

For 43% of US shoppers, the second biggest barrier to cross border purchasing is concern over lengthy delivery times.

The study also indicated that of those US consumers buying internationally, 27% are 25 to 34 year olds.

Across all three countries there are consumers who do not consider cross-border shopping, but this is most significant in the US, with 23% of those preferring domestic brands.

Consumers aged over 55 prefer to shop from brands in their home market, while only 7% of Australian-based consumers do not consider shopping from other markets.

Bronto Software professional services practice manager Saima Alibhai said: “Online retail makes it easier to reach consumers globally, but only if retailers understand their concerns and desires.

"It’s about reducing barriers and creating differentiation. Offering US customers unique, and perhaps even quintessentially British merchandise, at a good price with a superior transaction process positions a company to stand out alongside the growing competition.”