Checkout friction still a major cause of online basket abandonment, says report
Abandoned shopping baskets remain a significant issue for UK retailers, with complicated or lengthy checkout processes being considered the primary driver according to a new report.
Data from global analyst house Ovum and leading European payments provider Klarna revealed that 52% of retailers believe that friction in the online checkout is the biggest driver of basket abandonment, while 40% cited a lack of payment methods.
For e-commerce retailers, increasing the range of payment and financing options is the way to go, however many consider new options potentially too complicated to offer. While 78% of those surveyed said they would like to introduce consumer finance at the point of sale, 85% think that it is too complicated and expensive to offer this service.
But consumer appetite for more varied payment methods is strong. And with 53% of online shoppers looking for new and easier ways to pay online, the UK is likely to see the emergence of new buy-now-pay-later options in both online and mobile channels.
Smoother e-commerce payment processes take on special importance as more transactions shift online. According to the report, retailers estimate that 65% of retail sales will take place online by 2019 and that 12.8% will be made on mobile. To stay competitive, 9 out of 10 retailers are currently investing in mobile payment capabilities, said Klarna.
"The UK is amongst the most dynamic and competitive markets when it comes to online and mobile shopping. The fierce levels of competition, combined with an increasingly demanding customer base driven by millennials, is now leading to more experimentation in how we pay,” said Gilles Ubaghs, principal analyst at Ovum.
“It's getting harder for retailers to stand out online - improving payments and offering new ways to finance purchases is undoubtedly becoming a critical component of the ecommerce landscape."
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