Retailers are being urged to overhaul and update their online checkout systems after a report showed retailers are losing £2.4bn in revenue as shoppers abandon purchases at the checkout.
According to a report from Mobile Money Network (MMN), backed by Sir Stuart Rose, retailers that force shoppers to create an account prior to purchase was a big factor in the abandonment, as retailers lose £470m from this alone.
The report analysed data from 18,000 shopper journeys.
MMN’s Simply Tap mobile app allows customers to buy goods instantly by using codes on in-store posters, e-commerce sites, m-commerce sites, catalogues, outdoor poster advertising, print advertising and on social media sites such as Facebook.
MMN managing director John Milliken said:“The goal is to make it as easy and as quick as possible for consumers to buy from retailers wherever they see a product.
“However, the majority of retailers don’t give consumers an opportunity to instantly buy, for example on social media or from an advert and still require shoppers to go through lengthy, complicated registration and payment processes when they do have something ‘in their basket’.
“This is akin to standing in a shop queue and not being allowed to go to the cashier without giving up your email address and setting up a password.”
Research to tackle the cash lost through basket abandonment suggests retailers need to ensure there are fewer steps from purchase intent to transaction completion, and a uniform cross channel approach across all retail and marketing channels.
There is potential for innovation to centralise information so shoppers have one log on regardless of the retailer you are buying from, said the report.