Project Overview
Retail Economics, in collaboration with GFS, embarked on an in-depth industry research initiative to delve into the prevalent issue of online basket abandonment. This comprehensive study not only measures the financial implications of consumers discontinuing their online shopping sessions before completion, but also sheds light on the potential revenue losses this represents for the entire industry. By understanding the magnitude of this missed opportunity, businesses can better strategise to address and mitigate these challenges.
The research was featured in the Financial Times (print), The Times, Retail Week and on other trade related websites.
Richard Lim (CEO Retail Economics) speaking about the imapct of online basket abandonment in the context of the current economic climate and how retailers need to be more proactive in creating more seamless customer journeys.
Report Highlights
- One in four attempted online purchases are left abandoned by consumers, as expectations around delivery options, cost and speed fall short.
- This amounted to £32 billion of abandoned online transactions in the last 12 months, with the single highest factor contributing to being the lack of delivery choice offered at checkout.
- Irrespective of demographics, delivery is front of mind for all consumers and can make or break the purchase experience, directly impacting acquisition, conversion at checkout and repeat purchase.
- Consumers expect a minimum of five delivery options; currently, pure online non-food retailers offer less than three delivery options on average.
- A survey of over 100 retailers revealed that higher operational costs and overhead of working directly with multiple carriers are the main obstacles to expanding consumer delivery choice.
Things to do now
Click here for more information about the report.
Click here to access the presentation slides our CEO, Richard Lim presented for this project.
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