Consumers will spend more of their online dollars with UK retailers over the next month, PayPal says, as the local dollar continues to strengthen against the British pound.
The Australian dollar has hit a 27-year high against the pound, which PayPal expects will lead to a traffic spike between Australia and the UK over the next month, as shoppers take advantage of the rising dollar.
Over the past 12 months, UK retailers such as ASOS, TopShop, Oasis and the Book Depository have improved their offering for Australian consumers, delivering reduced or free shipping, local pricing and simplified returns policies. Though Australian consumers have been on capitalising on the weak US dollar for much of that time, these better offerings along with the weaker pound, mean many are shifting focus over to the UK.
According to PayPal Australia managing director Elena Wise, the secure payments company often notes changes in the spending patters on its 4 million active customers, “in response to fluctuating global currencies.”
“…and the most popular corridors from Australia continue to be the US, the UK and China,” she added.
All this means intensified competition for domestic retailers, though many are now fighting back by delivering an integrated and multi-channel retail approach.
Don’t be duped online
For those consumers keen to take advantage of the online deals from the UK over the coming weeks, PayPal suggests following these tips:
1) Check Shipping Times – You don’t want to buy an outfit for that perfect occasion that fails to arrive on time.
2) Check Sizing – Sizing can vary dramatically between countries. Conversion charts are easily accessed in the internet and most websites selling overseas have their own charts.
3) Protect your digital footprint – Avoid sharing personal information online where possible. Using PayPal – you never have to share your financial information online, letting you shop safely and securely.
