New research released today by Checkout.com is a ‘wake-up call’ for online retailers, as the majority predict the shift towards online shopping, accelerated by the pandemic, is here to stay.
The study reveals that across Europe, three-quarters (74%) of consumers have no intention to significantly reduce their online shopping now that they can revisit the high street. E-commerce retail leaders agree as three-quarters (75%) believe the future of shopping is solely online.
The data comes from a new report, The New State Of Retail, from leading 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 e-commerce 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 recognise the importance of staying agile: 97% 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%) say they are creating new local fulfilment centres to meet demand, whilst half (50%) have responded to increased cross-border demand since the start of the crisis by expanding the range of payment methods they offer. Yet, 60% 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%) Brits plan to purchase with buy now and pay later in the next 12 months. 80% of European consumers intend to use a digital wallet such as Apple Pay, Google Pay or PayPal in the next 12 months and 40% 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 capitalise 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.
The report can be downloaded here: www.checkout.com/connected-payments/the-new-state-of-retail