The three biggest problems facing online merchants are high operating costs, such as transaction and chargeback fees; the high risk of fraud; and the low proportion of site visitors who become paying customers. These are the findings of a recent survey of etailers by TrueLayer and YouGov, which indicates that the UK has one of the highest levels of card fraud in Europe.
Customers have varied experiences when shopping online. Some ecommerce sites are slick and user-friendly, while others offer cramped windows, tiny fonts, ambiguous terms and a lack of payment choices at the point of sale. There is also confusion about shipping costs and import duties – often these aren’t made clear until a visitor is about to commit to a purchase. Little wonder, then, that so many consumers ditch their shopping carts at the checkout in frustration.
Global research conducted by Statista across a range of industries in March 2020 revealed that the average online cart abandonment rate for the month was 88%. The largest proportion of trolley-dumping is done by idle browsers or shoppers doing price comparisons. But other key reasons that consumers cite for walking away at the last moment include unnecessary complexity in the checkout process, an obligation to create an online account with the retailer and mistrust in a site’s ability to keep their credit card details secure, according to research by the Baymard Institute.