basket anxiety? sees three-quarters of online shoppers abandon transactions
Ecommerce retailers might want to review their online payment systems, as new research reveals security concerns lead three-quarters of shoppers to abandon transactions at the checkout. In a study of 1, 000 online UK consumers, global payment company Visa found that sharing personal information with unfamiliar sites was the biggest cause of so-called basket anxiety. Some 76 per cent of those who had left a sale at the checkout did so because of such fears. Clunky payment systems were also pushing sales away from online retailers. A long-winded payment process saw three in five shoppers abandon transactions. Overall, 72 per cent of online UK consumers had left the checkout early on retail websites and apps having found the process tedious or concerning. Commenting on the findings, Kevin Jenkins, managing director of Visa UK, said retailers meeting the security expectations of consumers would see the rewards. retailers who are able to address consumer concerns in relation to the security and convenience of the payments process will avoid losing out on sales, he said in a statement. the UK leads Europe in ecommerce sales, with mobile shopping in particular experiencing rapid growth. But, with so many consumers abandoning baskets during the buying process, there is a clear need for new, easy, secure ways to pay. Younger shoppers were found to be most likely to abandon transactions. Over four in five consumers aged 18 to 34 years old had left a checkout before purchasing. The millennial group was also considerably more likely to shop on a mobile phone. Some nine in ten used a smart phone to buy online, compared to the national average of 67 per cent. Jenkins added: As shoppers spend even more online, in terms of frequency and value, the balance that needs to be struck between speed and security has become even finer. younger consumers expect a quick, hassle free payment experience, wherever and however they shop. Despite the prevalence of basket anxiety, recent figures showed UK ecommerce to be thriving. In the last 12 months, over 130bn was spent with online retailers, a figure growing year-on-year. Meanwhile, two-thirds of millennials now spend the same amount through websites and apps as they do on the high street. Five things to consider when launching an ecommerce platform
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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