Retailers are losing billions of pounds in potential online sales, with basket abandonment costing UK retailers £38bn in 2024, up 11% year-on-year from £34.4bn, as sales flatline.
24% of all purchases were abandoned, with the latest research from Retail Economics and GFS highlighting a missed opportunity to capture online sales. Poor delivery options remain one of the biggest pain points in online shopping, leading two-thirds (66%) of frequent online shoppers to abandon purchases at least once a month.
The Battling Basket Abandonment 2025 report, which is now available to download, reveals that inflexible delivery options – such as high costs, slow speeds, and lack of tracking – are among the top reasons why consumers abandon their baskets . Underpinning these is lack of choice. Shoppers who value low-cost delivery are more likely to convert if the cheapest option is made clear; shoppers who need items quickly are more likely to purchase if a premium service is clearly offered.
Younger, high-frequency shoppers are particularly sensitive to these issues, with 65% of Gen Z shoppers citing poor delivery choices as a key factor in their decision to abandon a purchase.
As competition intensifies, smaller and mid-sized retailers are falling behind in their ability to manage delivery effectively. The report finds that, overall, only 24% of retailers feel fully confident in their ability to manage multiple carrier partners, leaving them unable to offer a seamless and flexible delivery experience. This falls even further to 18% in the case of small and medium-sized retailers, but rises to 39% for larger retailers who, unlike smaller businesses, are more likely to have advanced multi-carrier capabilities, allowing them to optimise costs, improve delivery performance, and reduce lost sales.
Retailers cannot afford to overlook the impact of poor delivery experiences. Consumers now expect seamless, flexible, and cost-effective delivery options as standard. Businesses that fail to adapt risk losing billions in potential sales, while those that invest in multi-carrier strategies and delivery innovation will gain a clear competitive advantage. The stakes are high, and action is needed now to prevent further losses.
– Richard Lim, CEO, Retail Economics
Basket abandonment is costing retailers billions — and much of that loss is avoidable. Shoppers are clear: they want a wide choice of delivery options to suit their busy lifestyles. But, the majority of retailers, in particular SMBs lack the required multi-carrier capabilities in terms of technology and know-how to provide that choice and flexibility. Retailers are in a race against time to solve this ‘missing piece’ and prevent avoidable lost sales.
– Bobbie Ttooulis, Group Marketing Director, GFS
As retailers navigate an increasingly complex and competitive environment, the report calls for urgent investment in delivery innovation. It highlights the need for businesses to:
- Expand and diversify carrier networks to improve delivery flexibility and reduce risk.
- Leverage predictive logistics and AI to optimise delivery routes and anticipate demand.
- Enhance customer experience by aligning delivery options with consumer expectations around speed, cost, and tracking.
- Small and medium sized businesses in particular need to use multi-carrier service providers as a fast and cost-effective way to address the challenges they face around maintaining a strong delivery service.
With basket abandonment levels continuing to rise, the research underscores that delivery choice is no longer just a logistics issue – it is a fundamental driver of conversion, customer loyalty, and long-term profitability. Read the complete report here.
