42% of international ecommerce revenue lost at the payment pageby
Shopping cart abandonment is already one of ecommerce’s biggest concerns, with recent statistics from the Baymard Institute estimating that around 67% of online shoppers abandon carts before purchase.
However, new statistics from PPRO Group suggest that UK retailers may also be losing up to 42% of international revenue at payment pages, even though over half of ecommerce providers state that attracting international customers has been one of their key focuses over the last 12 months.
One of the main issues is the payment methods ecommerce providers offer for international customers, according to the research. At present, only 55% of online retailers state they offer alternative payment methods for people overseas, despite the array of different payment options expected in other countries.
Recent research shows that while consumers shopping in the UK prefer paying with PayPal (45%), followed by credit cards (22%), in the Netherlands, almost two-thirds (65%) of all transactions are carried out using the iDEAL online banking system and in Germany and Austria most digital buyers prefer payment on account and via direct debit.
“Online stores need to ensure that any potential barriers to customer satisfaction and revenue are addressed before investing in attracting international customers to their site,” says Tobias Schreyer, co-founder of The PPRO Group.
“So often, the payment stage of the process is overlooked, and when dealing with international customers, this element is key. Through most PSPs, it can be as simple as ticking a box to accept international payments, which would ultimately open them up to a wealth of business from outside the UK.”
For nearly half of ecommerce providers, the average value of a customer transaction is thought to be between £51 and £500, which highlights the financial impact losing overseas customers can have. Schreyer states that, with an increasing amount of business taking place online, it’s imperative customers are catered for at every step, including the payment stage, of their journey:
“Each country has its own preferred payment methods, much like it has its own language and culture. Online stores need to be aware, not only of the look and feel of their site, but on who they’re targeting and whether they’re offering what’s necessary to turn browsers to buyers.”
Despite the clear financial impact, other recent research from Genesys states that the vast majority of ecommerce providers do not have a follow-up process for cart abandonment, with a study of the UK’s top 75 retailers discovering that 85% let shopping cart abandonment go unchecked online.
Chris was an Editor at MyCustomer from 2014 to 2022. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News.