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Shipping charges, security and lengthy processes are top ecommerce turn-offs

New Postcode Anywhere survey focuses on causes of cart abandonment

Shipping charges, concerns about security and the purchasing process taking too long are the three things most likely to make consumers abandon online purchases, according to a new study by ecommerce software and services specialist Postcode Anywhere.

The study asked 2,000 North American consumers a range of questions about their online shopping habits and experiences, including top reasons for cart abandonment. Shipping charges topped the poll, with over three quarters (76 per cent) of consumers rating the factor among their top turn-offs.

Security concerns ran a close second with 57 per cent of votes. Lengthy purchasing processes was the third highest consumer gripe, with 39 per cent of consumers placing it in their top three reasons for cart abandonment, and one in four consumers stating lengthy forms as a specific annoyance.

Key findings

  • Speedy checkout
    Almost a quarter (23 per cent) of consumers would abandon their cart if a form took too long to fill in

  • Mobile
    Two thirds (67 per cent) of shoppers find it difficult to purchase from a mobile device

  • Click-and-collect
    Just under half (49 per cent) rated the option to collect items directly from a store as important

  • User experience
    One in four (39 per cent) consumers have recently faced a poor online experience and over half (55 per cent) of these relate to accurate address capture.

Commenting on the research, Guy Mucklow, Postcode Anywhere's CEO said: "The study highlights a number of areas where ill-judged processes and poor user experience are damaging the potential of ecommerce sites and driving business away. Given the unlimited range of options available to internet consumers, we are becoming far more discernible about the sites we use. It's imperative to remember that a competitor site is just a click away.

"These results highlight that it doesn't matter if your prices are very low or even if you have the best products in the market, if your shipping prices are too high or the checkout process is too long, you will lose customers.

"Based on feedback from our own customers, we've felt for some time that lengthy check-out processes are a huge irritation to consumers. Named by almost 40 per cent of consumers as a major reason to prematurely abandon checkout, it's actually really simple to fix. Only ask for essential information. Don't enforce your customers to register with you. And I would recommend using an address auto-fill technology such as Capture+.

"The study also highlights some of the issues that 'mcommerce' customers are facing, by revealing that over two thirds (67 per cent) of shoppers find it difficult to purchase from a mobile device, highlighting a missed opportunity in what is the fastest growing retail channel," he said.

Mucklow added: "The run up to the holidays is a critical time for retailers trading online, and so any failings in service during this period can have a major knock-on effect for the coming year. Giving customers what they want, along the simplest route possible, is a proven way to improve customer satisfaction and boost your sales. The message from the research is clear - ensure that the online experience you are providing is user friendly and secure or risk losing your business."

For a full copy of the report, please visit: www.postcodeanywhere.com

- ENDS -

Media contact for Postcode Anywhere
Natalie Green [email protected] +44 (0) 1905 888 637
Press center at: www.postcodeanywhere.com/press

Notes for editors

About Postcode Anywhere
Postcode Anywhere supplies software and services which improve the day-to-day operations of over 8,000 organizations worldwide. Best known as a provider of address auto-fill and verification software, the company offers a range of data-driven services, including route planning, customer profiling and bank account validation. It is now the fastest-growing reseller of Royal Mail's Postcode Address File (PAF®) and the market leader for online address auto-fill. A multi-award-winning organization, it has also appeared in Deloitte's European fast-growth technology company list for three years running. For more information about Postcode Anywhere, please visit www.postcodeanywhere.com.

Recent Awards and Recognition for Postcode Anywhere

  • Best Technology Solution - ECMOD Supplier of the Year Awards 2012

  • Vendor of the Year - Software Satisfaction Awards 2012

  • Deloitte Technology Fast 500 EMEA 2008/9, 2009/10 & 2010/11

  • Red Herring Top 100 Europe - 2010

  • Best Small IT Supplier of the Year - UK IT Industry Awards (finalist) - 2009

  • Dell Small Business Excellence Award (UK finalist) - 2009

  • Small-Medium Sized Business of the Year (regional finalist) - National Business Awards 2009

  • Orange Best Use of Technology - 2008 National Business Awards

  • Growth Business of the Year - Chamber Awards 2008

  • Small Business of the Year - Chamber Awards 2008

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