Research shows that retailers ‘lose’ up to £31.5 billion in online sales each year due to ‘frustration’ around delivery when customers come in to pay.
A report to be published this week found that 24.8 percent of online purchase attempts were abandoned by shoppers due to poor delivery options, high delivery fees and slow delivery speeds.
The report, Battling Basket Abandonment, by GFS, a delivery company and retail economics company, says that 83 percent of retailers believe they offer delivery options that meet customer needs, but only 48 percent of consumers agreed.
Three out of five retailers in the study offered express or next-day delivery, and less than half offered designated delivery or package pick-up points. Packages left in unsecured locations, poor packaging, and difficulty returning items were the top three “pain” points.
Richard Lim, chief executive officer at Retail Economics, said consumer expectations were “higher than ever” and that they showed “little tolerance” for brands unable to meet those levels.
“It is clear that with such a high proportion of online baskets left neglected at the point of exit, retailers need to prioritize offering a range of delivery options to suit their customers’ needs if they are to win.”
“Research validates, and more importantly places value, on what we’ve always known to be true: lack of delivery options leads to lost sales at checkout,” said Bobby Tullis, Executive Board Member, GFS. “In our experience, retailers know this. well, but they struggle to navigate internal costs and complexities.”