As Brits prep cuts to online spending, here’s how merchants can keep up

51% of UK consumers believe that the economic situation will worsen in the next 12 months, and 23% feel it will worsen significantly, according to research from Mollie.

The PayTech firm surveyed 3,000 people, evenly distributed across the Netherlands, Belgium, Germany, Austria, the United Kingdom, and France.

85% of Brits plan to cut their online spending, and only 15% said they wouldn’t change their spending habits at all.

According to Mollie’s research, merchants should focus their attention on providing preferred payment methods to encourage loyalty and drive sales amidst economic headwinds.

The survey shows that British consumers are more likely to stick with shops that offer their preferred payment method.

In fact, 84% of UK shoppers say that available payment methods are the biggest factor in their decision to purchase again from an online retailer.

Credit/debit card payments, and PayPal are the preferred payment methods for UK consumers looking to purchase from both domestic and international retailers.

Brits also prioritise free delivery and getting the lowest price when it comes to choosing their online retailer.

Trust in that retailer also matters significantly, as 81% of consumers say that seeing good reviews or previously buying from a brand would entice them to make another purchase from a retailer.

“Today’s e-commerce retailers need strong, seamless, and easy to use payments more than ever as they try to navigate a shifting retail landscape. Whether they can secure a shrinking share of consumer spend will hinge heavily on their ability to deliver frictionless, pleasant shopping experiences,” says Josh Guthrie, Mollie’s UK Country Manager.

“This is especially true for SME retailers, who often rely more heavily on third-party relationships to support their payments, shipping and returns, and other needs than their bigger competitors.”

“Retailers need to choose partners that will support their business with reliable, efficient, and flexible services, or risk leaving money on the table.”

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