When asked about the biggest challenges in online retail, 65 per cent of retailers cited converting shoppers to purchase, 43 per cent rated high costs for shipping or payment providers and 41 per cent selected low margins, according to research on the state of payments in retail by Mollie, a fast-growing payment service provider in Europe.
And for a third of online retailers (34 per cent), cart abandonment is the biggest challenge with 30 per cent reporting that 6-10 per cent of carts were abandoned.When asked about the biggest challenges in online retail, 65 per cent of retailers cited converting shoppers to purchase, 43 per cent rated high costs for shipping or payment providers and 41 per cent selected low margins, according to research on the state of payments in retail by Mollie, a fast-growing payment service provider in Europe.#
European Union and UK merchants rely on a multitude of channels to sell. As brick-and-mortar shops closed their doors, online has become far more important. Specifically, 46 per cent of all revenue now comes from an online.
And on an average, 37 per cent of sales occur via third-party marketplaces such as Amazon. Finally, as much as 16 per cent of annual revenue now comes through social media platforms like Instagram, the company said in a press release.
Two-thirds of retailers had revenues affected by the pandemic. The pandemic has had both a positive and negative effect on retail sales. Twenty three per cent of merchants saw sales increase last year.
Conversely, 29 per cent either saw no change or had sales decrease somewhat. And 17 per cent saw sales decrease significantly. Of those who reported an increase, revenues went up on average by 29%. The average decrease in revenues was 27 per cent.
Thirty one per cent said that an issue with the payment service offered or the range of payment service options provided was the reason for abandoned carts, while 41 per cent cited a lack of innovation in payment systems as hindering growth.
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