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Friday 18 October 2019

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Payments Awards 2019

70% of shoppers leave online cart due to lack of shipping choice

Written by Hannah McGrath
10/07/2019

Nearly three quarters (73 per cent) of online shoppers have abandoned their cart because they did not like the shipping options and more than a third (35 per cent) have stopped shopping with a retailer altogether because of a negative shipping experience, according to a new report.

A combined survey of 283 UK digital consumers and 776 merchants by e-commerce software provider BigCommerce also found that free delivery is becoming so important to customers that nine in 10 have added items to their cart to receive their purchases for free.

However, whilst many online merchants would consider the risk of cart abandonment a key cause for concern, almost half of retailers (47 per cent) would admit that they don’t know what their cart abandonment rate is, or the reasons behind this consumer behaviour.

The survey also found that nearly half (45 per cent) of UK consumers make online purchases at least once a week, highlighting the growing significance of alternative shipping options to digital retailers.

However, free shipping is now a common demand from many shoppers, with 44 per cent saying they avoid retailers that don’t offer it and 80 per cent saying they had made a purchase from a retailer purely because they offer free shipping.

Furthermore, while research shows that one in three (36 per cent) of UK consumers are not willing to pay extra for next-day delivery, a huge nine in ten (87 per cent) admitted that they had added items to their cart in order to receive free shipping.

No charge service is also expected when it comes to returns, with just 12 per cent offering free returns, which falls well short of the 37 per cent of UK consumers that expect a pre-paid returns label.

However, shipping is not the only factor considered by shoppers when it comes to choosing an online retailer.

The survey also found that 71 per cent of UK consumers now consider the environmental impact of their online shopping habits such as additional packaging, making them more environmentally conscious than shoppers in the US and Australia.

In order to offset this, almost a third (32 per cent) of consumers want the option of no shipping, instead choosing to pick up items at physical stores via services such as Click and Collect rather than have them delivered.

Commenting on the findings, Mark Adams, vice president and general manager of Europe at BigCommerce, said: “Retailers need to treat shipping as a critical piece of their business – or risk being left behind. A brand’s shipping experience can carry as much weight as the marketing or products themselves.

He added: “Spending the time and money getting to know customers’ shipping expectations might not be at the top of the priority list, but our research shows it holds the potential to deliver repeat shoppers and increased sales.”


Retail Payments Survey

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