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Payments matter as e-commerce sites lose revenue through lack of choice



Written by - Alex Rolfe

E-commerce merchants based outside of the UK could be losing out on vital global sales from Generation Y by failing to convert browsers into buyers at the checkout.

New research[1] into the online buying habits of 1,000 UK adults commissioned by The

e-commerce image

Payments matter as e-commerce sites lose revenue through lack of choice

PPRO Group found that, of those who have tried to buy goods from overseas retailers, a massive 64% of 18-24 year olds fail to complete a transaction solely due to the payment process.

Delving more closely into the reasons, overall figures found that 15% of respondents blamed the lack of their preferred option being available, with 11% finding the whole payment process too complicated. On the flip side, the over 55s were less concerned about this aspect of the purchase, with only 37% stating that the payment process is a barrier to sale.

With over half (55%) of those surveyed having tried to buy goods online from overseas retailers, this is a massive barrier to sale, with retailers potentially missing out on huge revenues as a result. Breaking this down further, the younger generation is more comfortable with inter-territory purchases (67%), with the over 55s more reticent to buy from those overseas (38%).

With recent figures from the IMRG and eDigitalResearch[2] suggesting that 60% of those who shop cross border do so due to price and availability, UK shoppers provide a great opportunity for overseas retailers, as they look to snap up a bargain. By removing barriers to sale, retailers can capitalise on this appetite for overseas purchases.

“With the younger generation more open to purchasing from outside of the UK, merchants could risk putting off a whole generation of buyers as many stick to home grown sites where they can use the trusted methods of PayPal or Visa to complete a transaction,“ comments Tobias Schreyer, co-founder and chief commercial officer at The PPRO Group.

“Our research has clearly shown that consumers are willing to buy goods from retailers based overseas for something they really want, but a lack of familiar and user-friendly payment processes is holding people back. Making payment methods easier will go a long way to increase this propensity to purchase from other territories,” he adds.

 

[1] One Poll surveyed 1000 UK adults who shop online between 24th July – 28th July 2014

[2]http://www.edigitalresearch.com/news/item/nid/521449356

The post Payments matter as e-commerce sites lose revenue through lack of choice appeared first on Payments Cards & Mobile.

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