Study finds Brits spent £7.7 billion online from overseas retailers in 2016

By

Barbara Santamaria

Published
Feb 23, 2017

Despite Brexit concerns, British shoppers are buying more than ever before from overseas retailers, according to new research from VoucherCodes.co.uk.

Brits spent £7.7 billion online from overseas retailers last year, representing a significant increase from £6.7 billion in 2015. The sector shows no signs of slowing down with an estimated rise of 8.9% this year to £8.4 billion.

Across the whole of Europe, the increase was even higher, with overseas retail spending increasing by almost 20% to £32.5 billion. The value is expected to climb to £37.7 billion this year.

While cross-border trade is undeniably growing, Britain is lagging behind the rest of Europe in terms of proportion. UK cross-border sales accounted for only 12.8% of total sales last year, while countries such as Germany, France, and the Netherlands saw shares of 14.2%, 16.9% and 25.5% respectively.

In terms of value however, the UK leads the way after Germany and is expected to spend an average of £8.42 billion abroad this year. While countries such as the Netherlands, Spain and France have a much higher percentage share in cross-border trade, the overall value these countries are spending is dramatically less.

The Netherlands, for example, will spend just £2.23 billion abroad this year, while Spain is estimated to spend only £1.89 billion.

“Brexit or no Brexit, cross-border trade is becoming increasingly attractive to consumers for so many reasons. Not only does it allow shoppers the access to so many more products at potentially cheaper prices, but delivery options are developing enabling customers to get the products delivered faster than ever, particularly for countries that are in close proximity,” commented VoucherCodes.co.uk MD Claire Davenport.

The report also found that e-wallets such as Apple Pay and Android Pay are becoming more popular with one in 10 Brits now using them as their preferred method of payment for online transactions. Debit cards remain the majority choice with 41% of the UK using them, closely followed by credit cards with 37%.

"More and more retailers are now expanding internationally and often the customer is not even aware they are making an overseas purchase. With varied payment options widely available and simplified return policies, consumer confidence in cross-border trade is growing at an unprecedented rate and is offering a fantastic solution for both consumers seeking lower cost and available items, and retailers looking to increase global sales,” said Davenport.