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DFF: ‘Abandoned baskets are worth £5.5bn per year'

Retailers are misunderstanding customers’ reasons for abandoning baskets online

Dan Horlor, international business development manager at Klarna

Dan Horlor, international business development manager at Klarna

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.

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