New research is a ‘wake-up call’ for online retailers


New research is a ‘wake-up call’ for online retailers

The study reveals that across Europe, three-quarters (74 per cent of consumers have no intention to significantly reduce their online shopping now that they can revisit the high street. eCommerce retail leaders agree as three-quarters (75 per cent) believe the future of shopping is solely online.

The data comes from a new report, The New State Of Retail, from cloud-based global payment solutions provider Checkout.com, which gathered the views of 10,000 European consumers and 550 senior executives at Europe’s top eCommerce retail organisations.

Progressive eCommerce leaders take advantage

In 2020, lockdowns across the world accelerated the shift towards online retail. Merchants rushed to pivot online, investing in new infrastructure and logistics to meet spikes in consumer demand. The study shows that, as the shift towards online retail continues, eCommerce leaders recognize the importance of staying agile: 97 per cent say that to remain relevant, resilient and profitable, they will need to evolve their business models within the next 18 months.

Merchants are taking action to ensure they keep pace with the changing retail landscape. One-quarter (25 per cent) say they are creating new local fulfilment centres to meet demand, whilst half (50 per cent) have responded to increased cross-border demand since the start of the crisis by expanding the range of payment methods they offer. Yet, 60 per cent of eCommerce merchants feel they still don’t have the payment insights needed to drive better performance.

The new wave of consumer demands for digital payments

Online shopping is now ubiquitous across European households. Consumers are increasingly seeking new ways of paying online and using financial services to empower themselves, whether this is through new solutions for credit, budgeting, or security. The report reveals that the growing demand for new and emerging digital payments is set to soar: three in 10 (31 per cent) Brits plan to purchase with buy now and pay later in the next 12 months. 80 per cent of European consumers intend to use a digital wallet such as Apple Pay, Google Pay or PayPal in the next 12 months and 40 per cent plan to do so regularly.

Moshe Winegarten, senior vice president at Checkout.com, said: “As lockdowns ease, analysts have predicted that eCommerce revenues are set to drop as consumers head back to the high street. But our research reveals that’s not the case. eCommerce will continue to accelerate, testing online retailers along the way. But the savviest of retailers will capitalize on this opportunity, riding the wave of accelerated eCommerce adoption in Europe and willingness to try emerging payment methods.”

“The past 18 months have demonstrated the need for businesses to remain agile, adapting business models, implementing new payment methods and meeting new regulatory requirements. Checkout.com has been developed with performance and speed in mind. Our modular payments platform is ideal for retail merchants looking to integrate better payment solutions seamlessly.”

The New State Of Retail report explores numerous additional topics, including the growing surge in cross-border shopping, the uptick in subscription models, and the social commerce boom, an exciting way for merchants to tap into new pools and potential customers and increase revenues.

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