Over four in 10 online retailers fail to measure checkout conversion rate, finds new study

An incredible 42% of online retailers are failing to measure checkout conversation, their most important metric for completing online sales according to a new study from data validation specialist, Fetchify. This is despite the huge issue of lost sales throughout online retailing with the average basket abandonment rate across all eCommerce standing at 68.8%

The study of 115 UK eCommerce retailers and store builders found that this even affects large retailers with 10% failing to measure with the issue particularly acute for ‘small and ‘micro’ businesses with some 35% and 42% respectively failing to measure. The two main reasons for not conducting this essential analysis were “not enough time / resource” (stated by 42%) and “don’t know how” (stated by 31%).

However, the report did find that retailers are adapting their checkouts to boost conversion. Some 70% of the retailers have invested in new tools to help with  address lookup the most popular (used by 60%), followed by upsell tools (30%), delivery options, reengagement messages and discounts (all used by 20%).

And these tools are making a difference. When asked how ‘effective’ these tools are, address lookup scored the highest and rated “very effective” or “effective” by 71%. This was closely followed by abandoned cart discounts by 67%. Alternative payments and buy-now-pay-later options also scored highly with 63% and 63% respectively. Urgency tools (such as limited offers and countdowns) only rated 38% effective, upselling related products and remarketing ads both scored 44%.

The report also looked at the challenging issues related to mobile commerce where 86% of baskets are abandoned. Some 57% of those surveyed claiming to be performing better than this figure (compiled in 2020) – suggesting that the issues or resolving dropped baskets in mobile devices may be making progress. However, of the 29% of the panel which currently measuring overall rates, are not breaking it down by device, meaning a potential gap in understanding across different platforms.

Russell Jones, CEO Fetchify: “The study is something of a mixed picture. On one hand retailers are investing in the tools they need to boost their checkout conversion rates but on the other, a large proportion aren’t measuring the key metric they need to track their effectiveness. Dropped baskets are a huge problem across retail and even a tiny increase in conversion rate can mean big increases in revenue to a business. The tools they have purchased have to be fine-tuned to increase their effectiveness and you can only do that when you have the key data.”

This survey was conducted in December 2021 and quizzed 115 eCommerce retailers and store builders. The base was a mix of Fetchify customers and non-Fetchify customers. A mixture of industries and company sizes were studied with business ranging in size from microenterprise (1-10 employees), small (11-50 employees), medium (51-250 employees) to large (over 250 employees).