Online retailers across the UK are bracing themselves for the upcoming Christmas season amid fears of being unable to keep up with the escalating demand, as per a recent report released by Checkout.com and Opinium. The study, which surveyed 256 online retailers in the B2C sector, revealed that a notable 21% of these businesses are apprehensive about their future if they fail to have a successful festive period.
The holiday season is a crucial time for retailers, with many struggling to sustain their operations post-Christmas. Despite online retail reigning as the dominant segment in the UK this year, specialized online retailers are also voicing concerns about their capacity to meet the soaring demands during Christmas.
A major issue highlighted in the report is the various reasons contributing to the trepidation of a lackluster Christmas season. While some retailers are skeptical about consumer willingness to spend during this period, others are concerned about their own capability to manage the surge in demand. Precisely, 19% of online merchants fear that their e-commerce platforms may not be adequately prepared for the online festive sales rush, with smaller retailers displaying a higher level of unease at 22%.
Moreover, the report delves into consumer expectations for the forthcoming Christmas shopping spree. Despite 14% of shoppers planning to spend £500 or more, a significant 26% of online retailers are anticipating lower revenues than the previous year during Black Friday. Furthermore, consumers are increasingly seeking effortless payment options like mobile wallets such as Apple Pay, a feature currently beyond the reach of 40% of online merchants due to insufficient payment infrastructure.
Overall, an expected £10.5 billion is projected to be spent during the festive season in the UK, with the average individual slated to splurge around £278 on the digital high street during the Christmas and Black Friday period. Fashion items are forecasted to be among the most sought-after products online during this period.
Bradley Riss, Chief Commercial Officer at Checkout, stressed the significance of a seamless digital shopping experience for consumers. He emphasized, “Convenience is king, and that’s as true of payment systems as it is of online deliveries. It’s a busy time of year for consumers, and they won’t wait for archaic e-commerce infrastructure or limited payment choices when a competitor is only a few clicks away.”
With the prospect of the ‘most online’ Christmas quarter looming, the report underscores the critical need for enhancements in both operational capacity and digital payment options to cater to the escalating demands of consumers during the upcoming festive season.
For more information on digital payments during the festive season, visit here.
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