Customer frustrations lead to £32 bn in abandoned online sales in UK

25 May '23

3 min read

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Insights

UK online shoppers are frequently abandoning transactions, leaving £32 billion unspent over the past year, as per a study by GFS and Retail Economics.
This frustration largely stems from limited delivery choices, high costs, and slower delivery times.
A notable generational gap shows 'digital natives' under 45 more intolerant of these issues.

Millions of shoppers in the UK are being left frustrated at the point of online checkouts, with one in four potential transactions resulting in baskets being left abandoned, as per a new research from GFS and Retail Economics. In the last 12 months, this has amounted to £32 billion being left at the point of checkout as lack of delivery choices, costly delivery options and slower-than-expected delivery times are costing retailers dearly.

There was a significant gap between 'digital natives' (under 45) and 'digital adopters' (over 45) in terms of expectation levels. Younger consumers demonstrated less tolerance for friction within the customer journey, prepared to abandon their shopping, and switched to retail brands that can meet their expectations. For under 45s, one in three online shopping experiences resulted in abandoned baskets, demonstrating a higher willingness to pay for delivery options to suit their lifestyle, as per the research.

Interestingly, millennials (aged 25-44) showed the most willingness to pay for various delivery options compared to other age groups. The research discovered that 95 per cent of millennials would be open to paying for premium delivery options, compared to an average of 78 per cent.

However, retail brands are well aware of these challenges. Nearly half (45 per cent) of the surveyed retailers considered 'expanding delivery options' as the primary means to meet customers' expectations, followed closely by 'free shipping or reducing delivery costs' (44 per cent) and 'reducing delivery times'.

Despite the understanding of delivery concerns, there is a significant mismatch between retailers' perceptions and consumers' frustrations when it comes to 'returns'. Over a third (35 per cent) of consumers found the returns process highly frustrating, while only 24 per cent of retail brands recognised this concern.

Moreover, despite the ongoing cost-of-living crisis, consumers are willing to pay for a smooth returns experience. Notably, 76 per cent of consumers under the age of 45 were willing to pay for a quick and hassle-free returns experience, compared to just 34 per cent of consumers over 45.

"The research validates, and more importantly puts a value on, what we’ve always known to be true; that lack of delivery options results in lost sales at the checkout. In our experience, retailers are well aware of this but struggle to overcome the internal costs and complexities of working with multiple carriers. That’s why we’re seeing a clear shift away from traditional approaches, with retailers seeking multi-carrier partners to resolve this,” said GFS executive board member, Bobbie Ttooulis.

Fibre2Fashion News Desk (DP)

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