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How do exchange rates impact online purchases?

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Exchange-rate pass-through

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Exchange rates play a significant role in influencing online purchases. An appreciation of the domestic currency can lead to increased e-commerce imports, with a 1% appreciation resulting in a 0.7% rise in imports, showcasing a 50% exchange rate pass-through online . Volatile exchange rates not only affect the price paid for imported materials but also influence the total cost of goods over the life of a contract, impacting purchasing decisions and supplier selection in international sourcing . Additionally, exchange-rate fluctuations can impact the cost of imported goods due to firm heterogeneity in importing and cross-border shopping among consumers, making the net impact on aggregate retail prices and sales uncertain . Therefore, exchange rates play a crucial role in shaping consumer behavior and decision-making in the realm of online purchases.

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Open access•Journal Article•DOI Consumer arbitrage in cross-border e-commerce Jose Anson, Mauro Boffa, Matthias Helble - Show less +2 more 01 Sep 2019-Review of International Economics 8 Citations	Exchange rates impact online purchases by influencing consumer behavior; a 1% domestic currency appreciation increases cross-border e-commerce imports by 0.7%, indicating a 50% exchange rate pass-through online.
Open access•Posted Content Exchange Rates, Retailers, and Importing: Theory and Firm-Level Evidence Alex W. Chernoff, Patrick Proctor Alexander - Show less +1 more 01 Jan 2019-Research Papers in Economics 3 Citations	Exchange rates affect online purchases by influencing the cost of imported goods, potentially leading to changes in prices and consumer behavior, such as increased cross-border shopping.
Proceedings Article•DOI Predicting Short-Term Exchange Rates for Automatic Purchasing Using News Article Data Hairon Sato, Nana Ogasawara, Yuanyuan Wang - Show less +2 more 01 Oct 2018	Predicting short-term exchange rates using news articles can enhance automatic purchasing systems by providing insights into currency fluctuations, potentially impacting online purchases through improved decision-making.
Patent Determining conversion rates for on-line purchases David Singleton, Miles Edward Barr - Show less +1 more 08 Jun 2011 14 Citations	Not addressed in the paper.

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