- Survey also uncovers adaptations that retailers can make to remain competitive, as total cost to UK retailers of cart abandonment could reach £46bn annually
- Over 90% of respondents believe that a greater variety of checkout options would increase sales conversion
A new survey has shown that the majority of consumers expect to increase their rate of cart abandonment over the next twelve months. Already, over 90% of retailers report that shoppers are abandoning their baskets before checkout. Currently, the average annual value of goods abandoned per consumer is £861, which equates to lost sales of more than £46bn for retailers, based on the UK’s current adult population.
Some 62% of businesses see cart abandonment as an issue and an average of 20%-40% of goods are left unsold during customer journeys, according to the retailers who took part in the study. Respondents reported cart abandonment as an issue across a range of basket sizes, with values of more than £500 or even £1000 regularly left in digital shopping baskets.
The reasons retailers give for shoppers leaving items in their baskets include overly complicated checkout processes (35%) and a lack of consumer payment options (34%). The survey revealed that 58% of UK retailers are already using retail finance products, while 35% are considering adopting them in the near future.
Despite this, many retailers struggle to see their bigger basket sizes covered by their current retail finance providers – which is likely to be stretched further with price rises beginning to hit consumers.
Some 92% of retailers said their customers would benefit from retail finance options covering more basket sizes. More than 90% believe a greater variety of checkout options would help consumers finalise their purchases.
These are the key findings of a new survey of UK retailers by Buy Now Pay Later (BNPL) platform Deko, in partnership with leading market research consultancy Censuswide, to better understand how retailers regard retail finance products such as Buy Now Pay Later and to discover any underlying challenges that merchants face.
The survey highlights the sustained scale of basket abandonment and suggests that a broader range of checkout finance offers could help retailers boost sales.
As the cost-of-living crisis and inflation worries continue to impact consumers, flexible payment options are of particular benefit to both buyers and merchants. Having the greatest possible variety in checkout options will increase both affordability for customers and, as a result, sales conversion for merchants. It will also enable consumers to spread the cost of their purchases in a responsible way that will allow them to be in charge of their budgets and better manage their cash flow.
Upgrading checkout processes to include the latest generation of retail finance products will therefore help merchants to remain competitive in the face of widespread economic pressures. The integration of products that cover the widest range of basket sizes will ensure that retailers are able to responsibly convert maximum sales, with 64% of retailers agreeing that a multi-lender checkout solution would reduce basket abandonment.
Innovative retail finance providers such as Deko specialise in multi-lender, multi-product solutions at checkout, which enable coverage of all basket sizes. Deko’s integration is fast and seamless, with retailers able to onboard flexible retail finance within 24 hours.
Melanie Vala, Chief Commercial Officer of Deko, said: “These survey results demonstrate how many UK businesses struggle with the challenge of basket abandonment and sales completion, particularly against the backdrop of rising costs and inflation. Complicated checkout processes with a lack of flexible payment options are a key factor in shoppers choosing not to convert their sales. Yet, often retail finance providers do not cover a sufficient variety of basket sizes or shopper profiles, making it difficult for retailers to drive sales. These providers and retailers need to do more to provide the broadest range of affordable payment solutions for customers, to enable them to continue purchasing the services and goods they require.”
With its platform and product selection, Deko is looking to empower consumers to buy the things they need while helping merchants grow and convert more abandoned baskets. To do this, Deko offers a multi-lender, multi-product solution at checkout, with quick and seamless integration, making it the ideal tool to help retailers resolve the issue of basket abandonment and capture millions in lost sales.”
