Preferred Payment Method Availability Critical to UK Consumers

Payment firm PPRO has published a report, which claims that 44% of UK based consumers would abandon an online purchase if they couldn’t use their preferred payment method.

The data described in the report serves as a reminder to eCommerce retailers that by not offering a blend of payment options on checkout, shoppers that are ready to purchase may be lost – an outcome in no-one’s interest. Operating in new markets has a great number of both opportunities and challenges, and without due consideration of potential pitfalls, brands could be diminishing their prospects of international growth.

The report also makes it clear that the ease at which customers are able to navigate the checkout process is crucial, with 58% saying they would give up on a purchase if they found the checkout process to be complicated. PPRO found that Millennials were especially unforgiving in this regard, with 67% saying they would abandon a purchase because of a complicated checkout. For brands that want to capture a large chunk of the Millennial demographic, a frictionless checkout is non-negotiable.

Security was another subject at the forefront of consumers’ minds, as the research demonstrated that 59% of shoppers interviewed saw the security of their data and money as the primary factor to consider when choosing a payment method to use. Many of the respondents liked to stick with just one payment method, with 30% saying they rarely use a new or different payment method.

UK eCommerce Forecasted to Hit €222 Billion by End of 2020

uk eCommerce

In a study by RetailX, it was found that the eCommerce market in the United Kingdom is expected to grow by 11% in 2020, which would see it being valued at €222.5 billion by the end of the year.

The UK eCommerce industry has had to adapt given complications caused by the COVID-19 outbreak, and have done so successfully in some cases, with data from ParcelLab showing that UK online deliveries are 20% faster than normal at the moment. Currently, the average time it takes someone to receive an order is 1.7 days, whereas in early March the average was 2.1 days.

There are a few reasons why this has been shown to be the case. Firstly, roads are less busy due to social distancing, meaning drivers can reach their destination quicker. Another is that most people are usually at home during the day, so parcels are typically delivered on the first attempt. Finally, social distancing measures, such as forgoing the requirement for customers to sign for deliveries, save time for drivers.

The same research demonstrated that electronic goods have seen a 28% increase in online orders. The demand for Sports Equipment and DIY goods has also been growing rapidly during the pandemic.

 

Market and Innovation Review 2020

Brands Continue Sustainability Efforts

While brands are struggling to adapt to the new retail landscape in the wake of COVID-19, many are still focusing on sustainability, announcing schemes and changes throughout the month of March.

MatchesFashion

Matches Fashion

Image from Drapers

The luxury retailer is trying to shine a light on some of their favorite socially and environmentally conscious brands, via an online hub they are calling ‘The Responsible Edit’. This is said by the company to be a response to the news that 70% of their customers “try to live their lives as sustainably as possible”, and has been a project in the works for two years. The edit is a curation of more than 200 brands, divided by four Pillars – ‘Artisans, People, Charity, and Materials’, with customers being able to shop by a specific pillar.

Allbirds

allbirds

Image From Dezeen

The popular footwear company has become the first fashion brand to label their products with the exact carbon footprint of each pair of shoes.

The company has been known for its environmentally friendly practices since it’s inception four years ago, due mostly to its reputation for creating shoes with natural materials. Since then, the brand has continued to work on improving its standing as a sustainable company, with its announcement last year that it would become ‘Carbon Neutral’. This was achieved by paying around US$10 a ton to offset the emissions it created.

While other companies have done similar things in the past, Allbirds are in a unique position now as the first and only brand to list the carbon footprint of each product, displayed in a similar way to an ingredient listing. Co-Founder Tim Brown is confident that other brands will follow suit, given the current COVID-19 situation that brands are dealing with. “This isn’t the time to point out who’s doing everything right and who’s wrong—everyone is welcome to this conversation.”

Chanel

chanel

The luxury fashion house has developed a new sustainability plan to lower its carbon footprint. The plan is based on four key commitments

  • Reduce the carbon footprint of all operations
  • 100% renewable electricity by 2025
  • Balance out residual carbon emissions
  • Finance climate change adaption

The company is also trying to balance its residual carbon emissions, by investing in nature-based solutions like forest protection and restoration.