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A survey of UK online retailers by Tink found that 50% are concerned about how their business will survive in the next year. And 41% fear going bankrupt within the next 12 months.
Rising interest rates and the cost of living crisis have already caused consumers to start spending less. His 66% of retailers expect or have already seen an increase in the number of abandoned baskets, the majority of which are also expected at the time of payment (64%). .
A decrease in average order value (75%) and a decrease in repeat customers (67%) is expected or already experienced. With these trends set to significantly hurt the profit margins of online retailers, 40% have already cut costs or are considering doing so.
49% of retailers are considering layoffs at least to cut costs. Other common methods discussed include training (55%), advertising (52%) and investing in technology and online capabilities (48%).
As retailers cut back, consumers may also experience cutbacks or reductions in services. More than half (53%) of merchants have either stopped free shipping or are considering doing so. A similar percentage (54%) would at least consider stopping free returns.
While many retailers are looking for ways to cut costs, 32% of retailers are considering investing more in upgrading their payment stacks to reduce costs associated with their current payment methods. I’m here. The findings show that online retailers understand that innovative payment solutions not only help reduce costs, but also make points in the payment process easier for consumers.
a tink According to consumer research, 34% of consumers would abandon online purchases if they were required to manually enter payment details or personal information at checkout. He also found that third-party authentication websites were a major source of frustration, according to 46% of respondents.
Consumers are also actively looking for secure instant payment options. 43% are concerned about online payment fraud, and 47% are reluctant to use the buy now, pay later method because they are afraid of going into debt.
Mr Pope said:
Given the cost savings across the board, it is encouraging that retailers are investing in digital payment methods that can help solve these problems.
Low-cost, low-fraud, and frictionless payments can improve the user experience and reduce abandoned baskets, but for businesses struggling with cash flow due to the economic downturn, getting payments to settle instantly can be a challenge. Capability is essential.
