One in four online transactions is being abandoned by customers at checkout amounting to £32bn in the last 12 months, according to the latest research from GFS and Retail Economics.
The research found millions of shoppers are frustrated at the point of online checkout “as lack of delivery choices, costly delivery options and slower than expected delivery times are costing retailers dearly”.
The average basket abandonment rate was the highest among millennials and Gen Z at 33%, compared to 12% and 7% for Gen X and baby boomers respectively.
Millennials were the most willing to pay for delivery options with 95% of these shoppers saying they would pay for premium delivery options, compared with an average of 78%.
The research showed 45% of retailers were aware of the challenges when it comes to delivery frustrations and said expanding delivery options would be the most important area to help meet customers’ expectations, followed by free shipping or reducing delivery costs, and reducing delivery times.
However, only 24% of retailers considered the returns process to be a topic of frustration, compared to 35% of customers, leading to “the biggest mismatch” between the two.
Despite the cost-of-living crisis, 76% of consumers under 45 said they would be willing to pay for a quick and hassle-free returns experience, compared with 34% of consumers over 45.
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