Research by ILG company GFS, in partnership with Retail Economics, reveals that UK retailers are losing £34.4 billion annually to online basket abandonment – up £2.9 billion from 2023. The findings reflect growing consumer expectations and economic pressures shaping more cautious and deliberate purchasing decisions.
Why Basket Abandonment Matters?
Basket abandonment has far-reaching consequences:
- Lost sales directly impact revenue.
- Marketing inefficiencies arise when acquisition doesn’t lead to conversion.
- Operational costs increase through re-targeting efforts.
- Brand reputation suffers from poor delivery experiences.
Delivery-related frustrations are a top driver of abandonment with insights revealing that in 2024, 27% of shoppers left items in their basket due to insufficient delivery choices. Consumers are increasingly prioritising convenience, speed, and flexibility over cost alone.
Key statistics:
- 51% of consumers say choice matters more than cost of delivery
- 80% of shoppers would consider paying extra for premium delivery
- 54% of consumers are willing to pay for hassle-free returns
- 75% of the most affluent shoppers abandon baskets due to insufficient delivery options
Five Ways to Reduce Abandonment:
1. Partnering with a Multi-Carrier Expert
Switching from multiple delivery partners to a single multi-carrier partner simplifies the ability to offer maximum choice and convenience of delivery options to shoppers, with the advantage of competitive rates through aggregated parcel volumes.
2. Offer Five Delivery Options
Meeting consumer demand for variety, such as next-day, standard, click-and-collect, or pickup points reduces friction at checkout.
3. Focus on Reliability and Transparency
Fulfilling promises and keeping customers informed builds trust. Integrating tracking and clear communication helps manage expectations.
4. Leverage Smart Tech
AI and data can improve delivery routes, personalise the customer experience, and streamline inventory management. While AI interest is still emerging (only 32.3% are open to delivery updates via AI), its role is growing – especially among younger consumers.
5. Returns Matter
Quick, simple returns are now essential. With many shoppers watching their budgets, fast refunds and easy return processes support both satisfaction and repeat business.
This latest ILG-backed research underscores that delivery and returns are no longer just logistics – they’re core to customer experience. As online competition intensifies, retailers who align their fulfilment strategy with consumer expectations will be best placed to reduce abandonment, retain loyalty, and grow revenue.
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