Payment Options And Security Matter, But It’s Price And Shipping Costs That Kill Online Deals

Shipping costs and the total price are two primary inhibitors for consumers shopping online, found a survey from FuturePay Inc., which provides financing for online purchases.

Indeed, 86% of the 1,500 consumers surveyed in the fourth quarter cited the cost of shipping as the top reason they opted not to complete an e-commerce purchase. The expense of the purchase was cited by 72% for abandoning a shopping cart.

Also among the top five reasons were the hassle of a return, 22%; lack of payment options, 16%; and security concerns, 13%.

The survey found evidence of the increasing reliance consumers place on using mobile devices to shop. Of those classified as daily online shoppers, 31% prefer to research a product using a tablet or smart phone, in comparison to 12% of those who shop online a few times a year.

Consumers who shop online also expressed concerns about the experience, with the lack of a desired payment option and checkout forms that are too long each cited in 26% of instances of dissatisfaction.

The survey found that 61% of online shoppers making a big-ticket purchase sought electronics; 48% bought furniture; and 37% chose an appliance.

When asked at what price point would they choose a financing option instead of a credit card, 53% said $1,000, while 32% said $500, 8% said $200, and 7% cited $100.