Retailers are misunderstanding customers’ reasons for abandoning baskets online
Dan Horlor, international business development manager at Klarna
“Abandoned baskets costs the UK industry some £5.5bn in lost sales per year,” said Dan Horlor, international business development manager at Klarna, at Drapers Fashion Forum in London yesterday.
A new survey of consumers carried out by the payment provider found that the biggest culprits are the 16-24-year-old age group, who abandon a basket 3.8 times per month on average, compared with the 55-plus age group, who do it just once a month.
But there is a fundamental disconnect between consumers and retailers as to why basket abandonment occurs, he said.
In the survey, 29% of retailers felt that customers needed clearer product information, 28% believed a follow-up was required, 25% thought it was down to easier returns, and 34% thought easier payment solutions were the answer.
However, of consumers surveyed, 30% said they abandoned baskets because they changed their minds, 30% did not want to pay delivery charges, 19% did not have the necessary details to hand, 13% said the process took too long and 12% said the right payment option was not available.
Horlor said that retailers offering delayed payment solutions can increase average order value by 15% and an uplift in incremental orders of up to 30%.
Arcadia launched a partnership with Klarna to allow shoppers in the UK to buy goods now and pay for them at a later date last month.