How DTC brands can reduce cart abandonment
Published on: December 3, 2021
Updated: August 29, 2023
We took a look at the top 50 DTC retailers operating in the UK to discover what their checkout experiences were like. We discovered that a customer’s choices at checkout are highly constrained. From the type of checkout to the shipping options, DTC retailers are rarely giving their customers a choice.
1. DTC brands must offer delivery choices
First, a shocking 52% of brands ONLY offer standard delivery. 38% of brands offer next-day delivery, but only a further 10% offer a more flexible option like click and collect.
Similarly, only 20% of retailers allow customers to choose their carrier. 80% of those 20% charge the customer for that choice.
These numbers are despite research showing that consumers now expect next-day delivery and prefer carrier choice. As a result, most DTC brands are behind the times. In order to remain competitive in the the modern retail landscape, DTC brands must begin implementing immediate change.
2. DTC brands need a smoother checkout process
A full 34% of UK DTC brands require customers to log in to a customer account to make a purchase. This is despite the fact that guest checkout is extremely important to first-time buyers. Guest checkout reduces cart abandonment because it’s much faster method. It also allows first-time buyers to try a brand out before committing to sharing an excessive amount of personal data.
When it comes to flexible payment methods, DTC brands are also lagging. Only 20% of retailers offer a ‘buy now, pay later’ option. Of those who do, Klarna is the most popular provider. This is in comparison to the wider retail space where 41% of brands offer ‘buy now, pay later’ options. Doing so is an excellent solution for customers who don’t want to pay for an item just to try it out at home. With ‘buy now, pay later’ options, they don’t have to ever part with their money if they return the item.
3. Shipping costs remain high
The biggest blocker to checkout, however, remains shipping costs. 16% of brands are still always charging for shipping. 56% have a minimum order value, but these thresholds are often quite high and still prevent conversions. While always-free shipping may not be possible to offer, brands need to be taking regular audits of their shipping costs and order thresholds to ensure they provide the most competitive thresholds possible.
DTC brands have complete control over their checkout experiences and need to begin removing these obvious conversion blockers.
4. Sustainability options are rarely offered at checkout
Despite the fact that many brands in the DTC space tout their commitments to the environment, few brands offer customers sustainable options at checkout. Only 4% offer carbon-neutral delivery as an option. And only 6% offer less packaging as an option at checkout. With more companies popping up devoted entirely to helping retail brands achieve carbon-neutral shipping, DTC brands can quite easily begin implementing changes to put their money where their mouths are. This will help them to stand apart from their competitors.
DTC brands can make positive changes
It’s well known that around 70% of carts are abandoned. Our findings amongst UK DTC brands show some obvious wins that brands can start immediately implementing to improve their conversion rates. DTC brands need to begin putting the customer first by embracing Operations Experience Management. By taking end-to-end ownership of the post-purchase experience, not only can brands improve the post-purchase process as a whole, they can easily offer the variety of choices at checkout that customers already expect to see.