PayPal conducted a survey of 23,000 online shoppers across 29 markets including Russia to understand online and cross-border shopping behaviors. Some key findings for Russia include: - 73% of internet users in Russia shopped online in the past year, and 80% of those online shoppers made a cross-border purchase. The top three import countries for Russian shoppers were China, USA, and Germany. - Popular cross-border purchase categories for Russian shoppers included clothing/apparel, consumer electronics, and cosmetics/beauty products. - Russian shoppers reported that better prices, favorable exchange rates, and access to items not available in Russia were the primary drivers for shopping from other countries

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PayPal Cross-Border
Consumer Research 2015
Russia Report
PayPal Cross Border contacts: Melissa O’Malley, Astrid Huijssoon, Ritesh Arora
PayPal Market Research Contact: Daniel Jenkinson
Ipsos MORI Contacts: Eleanor Pettit & Peter Attwell

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Background & Objectives
Understanding that we are going through a commerce revolution,
PayPal in partnership with Ipsos, conducted a global 29 market survey
with approximately 23,000 consumers to examine how people shop
online and across borders.
Advancement of technology is helping to open up commerce
opportunities for everyone - across borders, anywhere, anytime and via
any device.
This survey is designed to gain insight into 3 main areas:
• How online commerce, and specifically cross-border commerce is evolving
• How and why consumers shop online across borders
• How consumers pay for cross-border transactions

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Research Methodology
This study was conducted across 29 markets and approx. 23,000 consumers globally.
3
Screening
Transaction & Spend:
Past 12 Months &
Next 12 Months
Cross-Border
transactions &
spend
Cross-Border
Payment
Online
survey
Global Fieldwork
conducted Sept-Oct
2015
Russia fieldwork 29th
Sept – 13th Oct 2015
20 minute
questionnaire
Respondents
recruited from
online panels
Own and/or use an
Internet-enabled
device*
Nationally
representative of
online population
Aged 18+
Fieldwork Sample, per market
Questionnaire
This research
was carried out
to
the internation
al quality
standard for
market
research, ISO
20252:2012
Data weighted to adjust for
known population incidence
29 markets
Sample of 800
per market.
Drivers, barriers and
attitudes to cross-
border shopping
*Desktop computer/Laptop/ notebook computer/Tablet /Smartphone/Some other type of mobile phone/Electronic
organizer / PDA with wireless voice and data features/Games console with Internet connectivity (e.g. Wii) /Smart TV

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RUSSIA FINDINGS
4

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Domestic and cross-border online shopping behaviour
5
73% Shopped Online in Past 12 Months
Base: Internet users n= 801
80% of Online Shoppers Shopped
Cross-Border in Past 12 Months
38%
9%
19%
34%
Domestic Only Shoppers
Cross-Border Shoppers
Proportion of online spend cross-border:
1-10%
11-50%
Mix of Domestic and Cross-Border Shoppers
51-100%
38% only shop domestically
54% shop both domestically and cross-border
8% only shop cross-border
Among online shoppers:
Q27. Thinking about shopping online, from which of the following country or geographies’ websites have you
purchased in the past 12 months? Please include your home country if applicable.Base: Online shoppers n=584
Q36d In the past 12 months, how much do you think you have spent
on websites from other countries? .Base: Online shoppers n=584
62% shopped cross-border
in 2015 vs 58% in 2014
Change in cross border
aware shopping since
2014: +4 ppts

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Automotive
Baby/children’s supplies
Toys and hobbies
Collectibles, memorabilia and art
Clothing/apparel, footwear and accessories
Jewellery/watches
Consumer electronics
Cosmetics/beauty products
Health products
Entertainment/education (digital)
Entertainment/education (physical items)
Garden, tools, and home improvement
Household appliances, goods and furniture
Groceries, food, drink and alcohol
Sports and outdoors equipment
Tickets (event & sport tickets)
Travel and transportation
Other
Cross-border purchase categories
6
20
11
35
7
57
17
39
24
9
16
13
11
21
8
13
10
13
11
Incidence of Categories for Cross-Border Shopping (%)
Q28. In the past 12 months what kinds of products have you purchased from websites
in other countries? Base: Cross-Border shoppers n = 362
Incidence of Categories for Shopping Online
(%) 23
15
36
10
50
16
40
33
15
32
24
17
33
17
18
32
30
19
Q6. Thinking about each of the categories below, please estimate your total
spend in each category over the past 12 months:
Base: Online Shoppers n = 584

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Ways of accessing websites in other countries
7
Q35. Which of the following best describe how you access online stores in other countries
Base: Cross Border shoppers n = 362
62
48
41
27
20
16
13
13
10
8
7
Go directly to websites I have used in the past
Go directly to websites I know the web address for
I go to sites recommended by friends/family
When I search for particular brands or products on a search engine,
sometimes this leads me to foreign sites
I look on foreign sites when I know there will be promotions
I follow links from shopping comparison sites
I Search for online stores in countries where the exchange rate is most
beneficial to me
I go to sites recommended or shown as links on social media sites
I click on online banners/ advertisements
I click on advertisements or company pages on social media
Look for websites in the country I want an item shipped to
Ways of accessing Online stores in other countries (%)

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Attitudes to shopping cross-border
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It is not important to me if the online retailer is based
overseas or not
It does not matter to me where the items are shipped
from, as long as the total price is good
I prefer large ‘global’ stores (e.g. Amazon) when
purchasing from another country
Sometimes it is not clear whether I am shopping on a
domestic or international online store
I am generally comfortable buying from an online
store in another country
I trust online stores from other countries as much as
stores from the country I live in
I have in the past made purchases on websites not in
my own language
I would not feel comfortable making purchases from a
foreign website that is not in my own language
Q34b. To what extent do you agree or disagree with each of the following statements?
Base: Online shoppers n = 584
50
71
54
29
61
47
43
66
34
22
21
54
14
31
47
22
15
7
25
17
25
22
10
12
% Agree % Disagree % Don’t Know

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China
Base = 270
USA
Base = 71*
Germany
Base = 30**
Better prices
Favourable exchange rate
Higher product quality
Trust in product authenticity
Access to items not available in my own country
Better customer service
Website/customer support is available in my preferred
language
I can discover new and interesting products
Online stores in this country are more trustworthy
More variety/availability of products/styles
Returns policies are generally better
Shipping is more affordable
Faster delivery speed
I can use my preferred payment method
I can access special deals in this country
Reputation of online store
Reasons for shopping from top import markets
9
Q34c. You say you have made purchases online from the “country”/”countries” shown at the top of the “column”/”columns” on the right. Please select your main
reasons for shopping on websites from this/these “country”/”countries” rather than the country where you live Base: Cross Border shoppers spending in each country
Caution: *Small base **Very small base
87
23
12
8
58
20
37
60
17
57
32
64
22
47
23
41
45
17
58
60
64
36
37
51
39
46
33
15
21
42
37
58
43
31
69
54
54
43
34
43
54
37
31
20
37
37
20
60

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58
56
48
47
44
43
41
39
39
37
Free shipping
Safe way to pay
Website available in my language or translation available
Can find items which are hard-to-find locally
Lower overall cost to buy items from another country
Customer support in my language
Costs shown/payment possible in your local currency
Offer delivery tracking/notifications
Wider product selection
Lower shipping costs
General drivers for cross-border shopping
10
Top 10 Potential Drivers for Cross-Border Shopping (%)
Q39. Which, if any, of the following would make you more likely to buy from a website
from another country? Base: Online shoppers n = 584

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47
42
42
40
44
34
28
33
31
30
28
50
50
45
44
43
38
38
35
35
34
34
Concern that the item I receive would not
be as described
Concern that I may not receive the item
Delivery shipping costs
Difficult process for returning products
Delivery time not fast enough
Concerns about counterfeit goods
It is not clear how much duties/customs
fees/taxes I will have to pay
Currency conversion rate not favourable
May not receive sufficient help if I
encounter problems
Concern about identity theft / fraud
Different language of websites, product
descriptions and customer support
36
32
27
26
20
16
16
15
15
14
Shipping / postage charges were too
high
Wanted to look for a better price
Delivery time was too long
Checkout process was confusing
Preferred payment option was not
available
The checkout process was not in my
language
Experienced technical difficulties
Item was no longer available at
checkout
Currency conversion rate was poor
Was not clear how much duty, tax, or
custom fees I would have to pay
Cross-border barriers & purchase abandonment
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Q36. Which, if any, of the following reasons prevent you purchasing from websites in
another country (more often)? Base: Online shoppers
% of those
who shop
cross-border
% of those
who do not
shop cross-
border
Top 10 Barriers to Cross-Border Shopping
(Base = 222)
(Base = 362)
Top 10 Reasons for abandoning cross-border purchases
Q38. Which of the following have been reasons for you to abandon an online purchase
from a website in another country?
Base: Online shoppers who have abandoned an online cross-border purchase (n = 337)

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Freight forwarding
12
Q42. Have you ever done any of the following when buying products online from other
countries? Base: Cross-border shoppers (n =362)
Q43. What were your reasons for delivering to an address in the country of purchase/using
a freight forwarding company? Base: Cross-border shoppers who have used freight
forwarding (n = 137)
31%
of cross-border shoppers
have used a forwarding address
(e.g. family or friends)
9%
of cross-border shoppers
have used a freight
forwarding company
Reasons for freight forwarding (%)
37
27
22
17
17
8
1
It was cheaper than using the store's
international delivery
The online store I was purchasing from
did not ship to my country
To combine purchases from multiple
stores into a single shipment
To avoid or reduce income duties/tax
or other fees
Because the purchase was a gift for a
person I sent it to
Because I was travelling in the country
at the time
Other

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Using different currencies for cross-border transactions
13
I would prefer to have the option of paying either in local currency
or my own currency
I check currency conversion rates before making purchases in
foreign currencies
I would not feel comfortable making purchases online in a foreign
currency
I have in the past made purchases online paid in a foreign currency
My bank charges me for making payments in foreign currencies
PayPal charges me for making payments in foreign currencies
The fees charged by PayPal when shopping online from other
countries are generally lower than the fees that would be charged if
I used other payment methods
77
63
57
42
37
25
23
10
20
28
46
27
17
15
13
17
15
12
36
57
62
% Agree % Disagree % Don’t Know
Q47. Please state whether you agree or disagree with each of the following statements about shopping
online in other countries: Base: Online shoppers (n = 584)

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Appendix A:
Guidelines for News Releases
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15. © 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Guidelines for News Releases (1/2) - Citing IPSOS
We are duty bound to protect both our client's and our own credibility and reputation by ensuring
that our surveys are accurate, balanced, not biased and that our findings are reported objectively
and accurately.
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Ipsos MORI should always appear correctly capitalised, and without a hyphen never as Ipsos Mori or Ipsos-MORI;
Please insure any finding or documentation (such as toplines) released to clients or the press carries the Ipsos MORI logo — everything
should be clearly branded Ipsos MORI (preferably on every page – need not be the logo, just the name);
Although this process is called Polls for Publication, the words 'poll' or 'polling' should not be used. Use words such as research or
survey: for instance, 'an Ipsos MORI survey' or 'the Ipsos MORI research shows, reveals, shows, says demonstrates, indicates, illustrates,
explains', etc.;
The media release must clearly differentiate between what are Ipsos MORI survey findings and what are not, and which text is based
on Ipsos MORI findings and which is not;
Please ensure that figures are described correctly. For instance, if the figures relate to a sub-sample of those who 'ever use a mobile
phone', this must be clear in the text. It would be wrong to state "75% send at least 15 text messages a day" as this implies it is 75% of
British adults – which is incorrect. It should say ‘75% of those who ever use a mobile phone say they send at least 15 text messages a
day’;
Watch out for a common error when describing changes in % findings over time. For instance, a shift from 40% to 60% is not ‘an
increase of 20%’. It is an increase of 50% (the difference, 20, divided by 40), and we usually describe it as ‘an increase of 20 percentage
points’;

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Guidelines for News Releases (2/2) – Citing IPSOS
References to Ipsos MORI data should be clarified using the actual survey results. For instance, simply stating 'most people feel they
are not getting value for money' does not clearly reflect the research findings. Instead, the text should be 'two-thirds of the British
public (67%) feel they are not getting value for money';
If charts or graphs are being used, all should have: Heading, full question wording, fieldwork dates, 'Source Ipsos MORI' in a bottom
corner and the base size must be noted for each different audience being reported upon (either full or for sub-sample groupings
being reported upon). Never “Base All” or “Base all asked”;
Please insure that the text used in a news release does not subtly or significantly alter the question wording, or précis the question, so
much so that the meaning changes. The exact words of the question should be reported in full.
Regional press releases are popular, but often the sample sizes involved (such as in Wales) are too small to justify separate analysis
and reporting (i.e. are not statistically reliable). As a guideline, to report the percentage results based on any sub-sample, the (un-
weighted) sample size should be at least 100; between bases of 50 and 99 indications of proportional results can be given – along
with a clear health warning about the small sample size.
The ‘Technical Note’ on slide 4 should be included with all press releases and materials for publication.
PLEASE NOTE: All materials for publication by PayPal should be sent to the Ipsos MORI team for approval before publishing
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