(ATHENS, GREECE) – PayPal, one of the leading services that facilitates global trade, recently published data regarding cross-border commercial transactions between Greece and the rest of the world.
Greek merchants using PayPal saw a 30% increase in payments from abroad during the first half of 2014.
PayPal payments from abroad received by Greek merchants increased by 30% in the first half of 2014, compared to the same period in 2013. The main export categories included travel services, internet services, fashion and household goods, car parts, books, software and mobile phones. In 2014, over 10,000 active merchants in Central and Eastern Europe partnered with PayPal to expand their businesses internationally.
Beyond Greece, international statistics show that online exports continue to grow steadily, despite the fact that exports of local and traditional products are slowing down in many markets. This trend is particularly evident within the borders of the 27 EU members, where transport costs are relatively low, without the effect of tariffs. While at least 10% of Greek merchants sell online, 44% of them received orders from other European countries in 2012.
“The magnitude of this opportunity is by no means negligible and should not be underestimated. Cross-border trade in 2013 exceeded $10 billion, accounting for 25% of PayPal’s total payment volume that year, while new online export corridors are emerging at a rapid pace. I am particularly pleased that Greece is among the fastest growing export markets in the Central and Eastern Europe region and beyond,” said Damien Perillat, Managing Director of PayPal in the Central and Eastern Europe Region.
Europe at the forefront of the best foreign markets for Greek traders in the first half of 2014
Greek merchants receive orders mainly from consumers in Europe, including the United Kingdom (16%) and Germany (10%), but North America remains a key market for sending money online to Greece (31%). Interestingly, the breakdown of the key markets responsible for the impressive increase in the value of Greek exports has remained almost the same in recent years.
Success factors for Greek traders
There are two reasons that lead to the success of Greek stores abroad: authentic, unique products and competitive prices. Most Western cross-border consumers admit that they buy from abroad because it costs less (80%) or because they find “a greater variety of items that they cannot obtain in the local market” (79%).
AirTickets, the online travel agency that makes it easy to find and buy airline tickets, hotel stays, car rentals, road trips, tours and other tourism activities worldwide, is seeing a big increase in its cross-border sales volume coming through PayPal. Other popular merchants include Datasteam Technologies, which specializes in online gaming.
“The globalization of sales and the opportunities provided by the Internet have helped us expand our business activities and reach consumers beyond the Greek borders. Today, we sell our products in over 9 countries around the world and use PayPal, as well as other payment methods, to receive payments. All we did was essentially take advantage of and implement the opportunities offered by the Internet and the increasing capabilities of mobile devices. Without a doubt, this has helped us improve the way we meet our customers’ expectations, and at the same time take our business to the next level” – stated Mr. Pericles Koutsoyiannis, CEO of Datasteam Technologies SA.
"We fully understand and take full advantage of the new opportunities and advantages of e-business with a large product base. This is precisely why we currently offer our services in over 15 countries around the world. PayPal has proven to be a highly valuable partner, as it provides us with a payment method tool that makes the sales process more secure, convenient and easily accessible to our customers," said Mr. George Baliouskas, Commercial Director of Airtickets Travel Enterprises Ltd.
Understanding foreign consumers
Consumers who buy from stores owned by Greek merchants prefer to use PayPal, given the fact that it offers them security and protection in their transactions. This means that buyers can request a refund in case of non-receipt of the product they purchased or because the item does not match the description provided by the seller. According to the Ipsos Vantis4 survey conducted in several European markets, buyers from the United Kingdom (62% locally and 58% internationally), Germany (65% locally and 58% internationally) and France (40%) choose the PayPal solution and always prefer it, when it is provided as one of the payment methods.
The survey also points out that a third of cross-border shoppers from countries such as the UK, Germany and France do not even realise that the product was purchased from a foreign merchant. In recent years, Greek stores have grown, matured and started to seek opportunities abroad. The most important companies offer the user interface in the most popular languages, such as English and German. The purchase and payment process has also been improved through mobile devices and each shipment can be tracked in almost real time.
