Poor checkout process and lack of payment options main causes of abandoned online baskets, according to new research.
Abandoned shopping baskets remain a significant issue for UK retailers, with data from analyst firm Ovum and payments provider Klarna suggesting that 52 per cent of retailers saying that friction in the online checkout is the biggest driver of this.
Meanwhile, 40 per cent cited a lack of payment methods and 39 per cent suggested a lack of lending or credit options was stopping consumers completing the payment process.
For retailers, increasing the range of payment and financing options is the key route to ensuring more consumers make it through the checkout process, and lower the rate of basket abandonment affecting UK retailers.
Ninety-eight per cent of merchants agree that consumers want new and easier ways to pay online and 78 per cent would like to introduce consumer finance at the point of sale.
However, perceived barriers to increasing payment options persist, with 85 per cent of retailers believing it is too complicated and expensive to offer consumer finance at the point of sale.
Despite this, consumer appetite for more varied payment methods is strong. With the growth in mobile shopping, and increasing interest in consumer finance, the UK is likely to see the emergence of new “buy now, pay later” options in both online and mobile channels.
Ovum and Klarna’s research found that 53 per cent of online shoppers are looking for new and easier ways to pay online, while 56 per cent said they would buy more online if there were more varied payment options available.
“This data shows that simple things such as a tricky checkout process or lack of payment options can turn off today’s consumers,” Klarna UK general manager Luke Griffiths said.
“But there is much to gain for retailers who get this right – consumers will spend more if the payment process is smooth and stress free.
“The majority of retailers still perceive online consumer finance as too complicated or expensive to offer. But today, it doesn’t have to be.”
Ovum’s principal analyst Giles Ubaghs echoed the sentiment.
“The UK is amongst the most dynamic and competitive markets when it comes to online and mobile shopping,” he said.
“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.
“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.”