UK online retail businesses could have increased their weekly gross sales by £198 million during the month of June if failed payments had not occurred, according to BR-DGE’s failed payment calculator.
The latest ONS retail data released today shows weekly online retail spending in June 2022 was £2.165bn. Yet, fragmented payment systems, put under increasing pressure by the massive growth in digital payments, can result in failed transactions and unprocessed baskets. If this was eradicated, June’s weekly online spending could have been as much as £2.363bn. Furthermore, with intelligent routing and a greater commercial leverage through payment orchestration platforms like BR-DGE, online retailers could further gain on operating margins.
Jacob Spencer, Head of Commercial at payments firm BR-DGE said:
“With the cost-of-living crisis impacting household budgets, it comes as no surprise that retailers are feeling the pinch as consumer spending is reined in. In the months ahead, retailers will need to be savvy in how they engage with consumers by offering greater affordability and the very best customer experience. Whilst we are living through a challenging period for the UK economy, the data positively reveals that e-commerce businesses could have generated around £198 million extra each week in June if failed customer transactions hadn’t occurred.
“Online sales are pivotal to UK retail’s success, however, we are seeing more and more that convenience is becoming of greater importance to consumers when they go to purchase items online. Worryingly from this data, the high amount of failed transactions is creating friction in the customer journey, eroding customer loyalty and repeat business for e-commerce businesses. Consumer payment needs are evolving at a fast pace and merchants need to keep up with this by offering a personalised payments experience to shoppers. To unlock this, online retailers should focus on finding payment solutions that integrate multiple providers and payment methods in order to avoid ongoing failed payments, build greater resilience in their payment systems, and empower online shoppers with the ability to pay how they want.”
BR-DGE is a payment orchestration service for merchants trading online, which channels a world of payment options through a seamless single point of integration, meaning merchants no longer need to pick and choose between one or two payment providers at great cost and administrative burden.