One in four online shopping carts are abandoned at checkout, costing retailers billions

More than one in four online transactions are abandoned at the checkout, worth £34.4 billion in the last 12 months, according to new research from GFS and Retail Economics.

Last year’s survey found that the loss of potential sales was caused by “supply-related issues”, compared to £31.5 billion in last year’s survey.

Retail Economics says this also reflects increased caution among consumers due to ongoing financial pressures and higher expectations when it comes to delivery options and services.

The clothing and footwear category had the highest abandonment rate, with the under 25s group four times more likely to abandon shopping baskets compared to shoppers over 65.

Basket abandonment was common among middle-aged and more affluent customers, as well as younger shoppers.

It is also said that customers are “scrutinizing the value of the service and the options that fit their needs,” with 64.5% of consumers expecting more from delivery services than ever before.

A total of 71% said they would abandon an online order due to “inconvenient delivery times,” while 47% were willing to pay more for premium options like same-day or next-day delivery.

Bobbie Ttooulis, marketing director of the GFS group, said: Our findings expose the £34.4 billion toll of abandoned shopping baskets due to delivery issues, prompting a call to action for retailers.

“With more than one in four purchases abandoned, meeting consumer demand for diverse delivery options is non-negotiable – especially when it’s the high-value, frequent 25- to 44-year-olds driving the churn. The need for retailers to adapt couldn’t be clearer.”

Richard Lim, CEO of Retail Economics, added: “High borrowing costs increase the risk of basket abandonment, especially among the young, middle-aged and higher income earners.

“These demographics are critical to retail spending, meaning the stakes have risen for retailers as consumer confidence hinges on a return to purchasing power to pre-pandemic levels.

“While the stakes are increasing, there is a willingness among economically important individuals to pay for services that deliver value by meeting their changing needs. Retailers need to urgently review delivery strategies to offer better services that support profitability.”

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