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1、The Global Retailers HandbookA guide for success in the new abnormal Leading retail brands thrive with CThe Global Retailers HandbookMethodologyThis years research is drawn from detailed surveys of merchants and consumers across the US and EEA.We surveyed over 9,000 census-balanced consumers from th
2、e US,UK,France,Germany,Italy,Portugal,Spain,and Greece.We also surveyed 500 large-and medium-sized retailers based in the US,UK,France,and Germany.These retailers operate across at least four geographies and comprise a mix of fashion/apparel,cosmetics/beauty,books,games and toys,food and beverage,el
3、ectronics,household,and leisure goods.These surveys ran in July 2022.This report also draws on last years survey of European consumers and merchants(same sample)so as to draw year-over-year comparisons and identify meaningful trends or shifts.276%81%60%33%16%43%60%80%of retailers are worried about t
4、he financial health of their businessof consumers say that the future of retail is online,up from 75%in 2021of consumers say it is important to them to know that the brand they shop with is making efforts to improve sustainabilityof consumers say that the need to budget effectively means they are mo
5、re likely to shop online so that they can identify the best possible value for money on the marketof consumers report using a new digital payment method for the first time,up from 10%in 2021of consumers say they are significantly reducing their spend on non-essential retailof retailers have seen a 2
6、0-50%increase in their tech budget in the past two yearsof consumers will abandon their purchase if worried about the security of the paymentBuilding resilience in retailTodays retail businesses are acutely aware of the challenges they face.However,consumers,while realistic about their own challenge
7、s,continue to have an appetite for smart shopping.This report gives retailers a vital pulse check on what their peers are doing and what their customers are demanding.The Global Retailers Handbook3When the economy falters merchants get smarterRetailers do not need to be told that,12 months on,the op
8、erating climate is different.It is challenging and new uncertainties have arisen.The hangover of pandemic supply chain pain has since been compounded by a rapid surge in energy and shipping costs,global inflation,and a cost-of-living crisis thats significantly impacting the lives of their customers.
9、We wanted to understand from retailers and consumers alike just what the biggest pain points and opportunities are and how merchants can yet again respond effectively to change in order to thrive.If the past two years have taught the sector anything,it is that retailers who can move fast and mobiliz
10、e the right support can turn adversity into opportunity.That fact remains true today.Armed with insights and a clear-eyed plan to address specific challenges,there are visible paths to long-term resilience and success.In particular,as retailers are trying to find paths to growth,there are very compe
11、lling reasons to focus on making ecommerce the star in the retailers channel mix,not least because consumers have long since crossed the chasm.This is good news for retailers who can continue to optimize their recent pandemic-driven investments in digital commerce and payments because consumers have
12、 an increasingly deeply established digital mindset when it comes to shopping and money.Indeed,81%of shoppers now believe that the future of retail is online,while a third believe that cash will be all but dead within five years.Nevertheless,the landscape of consumer expectations has shifted.What wa
13、s once exciting is now table stakes and,in a sense,excitement matters less today than core qualities such as reliability,transparency,and security.Similarly,retailers want to put the brakes on big,shiny new investments and ambitious or experimental plays for growth.Rather,they know that to achieve s
14、uccess through the rest of 2022 and beyond,they will need to do more with what theyve got.Indeed,by optimizing the basics,our data suggests that retailers can do a lot to shore up their digital revenue streams.This years trends are quiet but powerful.On the front end,retailers need to prioritize tru
15、st.On the back end,they need to optimize every transaction.In a climate where fraud is inevitably up and authentication has been put under regulatory pressure,payments optimization has taken on a renewed significance and potency for businesses.A third of retail merchants surveyed are looking to acti
16、vely ramp up their partnerships with experienced ecosystem players.And,as they do so,we look at the many ways in which a true payments partner can provide much-needed support to retailers in the current climate.From consultative advice tailored to your business model to making use of machine learnin
17、g authentication algorithms and data-driven insights,this report delivers actionable advice and tips to empower retailers.A year ago we published our first annual Retail Report.With wide-ranging and in-depth data on the sector,the report was a compendium of exciting news and hot growth trends.COVID-
18、19 had thrown down its gauntlet and the sector had visibly risen to the occasion albeit not without tremendous tenacity,imagination,and investment.The Global Retailers Handbook4ContentsThe Global Retailers HandbookYet another new abnormalWhats authentication got to do with it?From pandemic to panace
19、aPriorities have shiftedRetailers are leaving millions on the tableThe rise and rise of marketplacesA challenging retail environment demands extra vigilance and support Page 6 Page 31 Page 12 Page 37 Page 24 Page 46 How Strong Customer Authentication shapes your revenue successWhy retailers digital
20、investments continue to pay off in todays challenging environmentWhy trust is a retailers greatest asset today,more than everWhy payments optimization is more business-critical than everWhat it means for retail brands1425365Yet another new abnormal|The Global Retailers HandbookA challenging retail e
21、nvironment demands extra vigilance and support Yet another new abnormal676%23%31%30%25%29%28%of retailers surveyed are worried about the financial health of their business,27%are extremely worriedof retailers surveyed say they are struggling to recruit and retain enough staffof retailers surveyed sa
22、y that the cost of energy is significantly hurting their businessof retailers surveyed have had to increase their wages to hold onto their staff of retailers surveyed say that inflation is seriously squeezing their marginsof retailers surveyed say they have already passed on significant price hikes
23、to their customersof retailers surveyed say that supply chain problems have had a significant negative impact on their bottom lineFrames of referenceYet another new abnormal|The Global Retailers Handbook7However,as tragic events unfold in Ukraine,with ramifications felt around the global economy,the
24、 retail sector has yet again had to jump into action to find ways to deal with a new abnormal.Today,some 76%of retail businesses surveyed report feeling worried about the financial health of their businesses.Grappling with high operating costs,squeezed margins,staff shortages,and pay rises,retailers
25、 also find themselves in a suddenly more sharply competitive market where consumers are spending less and choosing more carefully(and differently)where and how they spend.Inflationary pressures are top of mind for consumers,and 86%say they are feeling the pinch.Nevertheless,todays reduced consumer c
26、onfidence is not simply linked to current price hikes.A long-term outlook of uncertainty around how the Ukrainian war will play out,and whether(or when)national recessions might kick in is actively contributing to consumers decisions to spend less money and more judiciously.The unprecedented,againYe
27、t another new abnormal|The Global Retailers HandbookUncertainty may be a fact of life,but deadly global pandemics and wars in Europe are probably not events most of us expected to see in our lifetimes,let alone in such close succession.When we spoke to retail businesses in 2021 they reported a sense
28、 of optimism that,largely,they had met the challenges of the pandemic and that the economy was showing signs of recovery.Indeed,61%reported that they expected to see significant growth in 2022.61%of retail businesses reported that they expect to see significant growth in 202286%of consumers say they
29、 are feeling the pinch8Yet another new abnormal|The Global Retailers HandbookUnited KingdomUnited Kingdom46%28%FranceFrance37%20%ItalyItaly35%17%PortugalPortugal47%35%SpainSpain37%19%GreeceGreece41%21%GermanyGermany43%30%United StatesUnited States52%32%Consumers budget against price hikesPortion of
30、consumers who said they are significantly reducing their spend on non-essential retail because of inflation and price hikes.A backdrop of risk and uncertainty tempers consumer appetitePortion of consumers who say that the war in Ukraine and threats of recession make them feel especially cautious abo
31、ut non-essential spending.20219As regional economies try to decipher whether theirs is through the worst of this mammoth spike in inflation,merchants must strap in for the long haul with the assumption that consumers are likely to be cautious and struggling for a while to come.Indeed the GfK consume
32、r confidence index,which measured an all-time low since the 1970s earlier in 2022,continues to record a downward trend month over month1,suggesting that for the time being retailers can expect confidence to be on a downward trajectory for some time.Nevertheless,there remains a segment of the consume
33、r base that is not yet feeling the pinch,or feeling it somewhat but not yet needing to adjust to it.Some 15%of consumers say they are not yet experiencing a cost-of-living crisis and a further 15%report feeling the impact on their wallet,but not to the extent that it would change their spending habi
34、ts.Retailers report a bifurcation of purchasing behavior which sees price sensitivity from medium to less well-off customers combined with a business as usual approach from wealthier segments,who tend to opt for premium products and have not necessarily cut their spending.According to Katherine Cull
35、en,Head of Consumer Research at the National Retail Foundation,higher-end consumers“are worried about inflation but theyre not necessarily tightening their belts”2.Yet another new abnormal|The Global Retailers HandbookSome 15%of consumers say they are not yet experiencing a cost-of-living crisis and
36、 a further 15%report feeling the impact on their wallet,but not to the extent that it would change their spending habits.10Yet another new abnormal|The Global Retailers HandbookLean on partners who solve for complexity and free you up to thriveToday,more than ever,it is important that your vendor re
37、lationships are true partnerships.Retailers need to know they are working with partners who invest in the relationship and who can offer long-standing experience and deep expertise.Retailers need to focus on their core performance and demand partners who will support them in this.Your payments partn
38、er should have a detailed understanding of your business and your revenue model.They should demonstrate a clear grasp of your specific challenges and opportunities,and they should be able to solve complexity by combining human ingenuity with leading-edge technology.Look for a payments partner who ca
39、n flex to your specific needs and take on the heavy lift of payments complexity freeing you up to do what you do better.Insights in action11Why retailers digital investments continue to pay off in todays challenging environmentFrom pandemic to panaceaFrom pandemic to panacea|The Global Retailers Han
40、dbook1281%30%27%46%62%33%14%16%60%of consumers say that the future of retail is online,up from 75%in 2021of retailers plan to invest in improving the checkout/payment experience for their ecommerce customers in the next 12 monthsof retailers plan to increase the breadth and depth of their partnershi
41、ps with ecommerce ecosystem partners to support them through choppy watersof retailers say changing consumer demands are the top tech investment driver for the next 18 monthsof retailers say the integration of digital payment technologies will be key to protecting revenue in the next 18 monthsof con
42、sumers say that the need to budget effectively means they are more likely to shop online so that they can identify the best possible value for money on the marketof retailers plan to offer white-labeled headless commerce solutions as an additional revenue streamof retailers plan to depend on headles
43、s commerce solutions to streamline their ecommerce operationsof retailers have seen an increase in their tech budget of 20-50%in the past two yearsFrames of referenceFrom pandemic to panacea|The Global Retailers Handbook13From pandemic to panacea|The Global Retailers HandbookFew ever doubted that th
44、ere would be some rebalancing of in-store versus online shopping once consumers had their freedom to roam restored.The old normal of bricks and mortar suddenly acquired a sort of novelty tinged with nostalgia.Nevertheless,industry analysts are observing indicators that ecommerce growth is set to bou
45、nce back and remain high in the long-term,for example,the Statista Market Outlook report forecasts a pick-up of 14%growth in 20233.Regardless of forecasts,our year-over-year survey data strongly suggests that the rapid increase in digital shoppers seen during the pandemic has resulted in an ongoing
46、compounding of maturity and positive sentiment when it comes to online shopping and digital payments.Even as pandemic restrictions lifted,the portion of consumers saying that ecommerce has made their lives easier and safer has increased by 15 percentage points in the year since June 2021.Meanwhile,a
47、ccording to Mastercard transaction data,the winter of 2021 saw online sales growth of 11%in the US compared to the same period in 20204.This is just another indicator that consumers dont need stay-at-home orders to choose online shopping as their preference.And some 83%of European consumers now say
48、that the future of retail is online,which is up from 75%in 2021(81%when including this years US sample).Moreover there are signs that as the downturn sets in and consumers seek to budget carefully,they are turning back to ecommerce as a means of identifying the best possible value for their money.Co
49、nsumers are currently looking to ecommerce versus in-store because they are taking a research-based view of shopping.They report that access to ecommerce allows them to more quickly,comparatively,identify the best options for their budgeting needs and they are eagle-eyed in the search for deals,loya
50、lty schemes,flash sales and price cuts.All of this is good news for retailers whose recent mammoth investments into their digital channels can continue to pay dividends in the current economic climate.While we see a current decrease in spending appetite from merchants,they know they have to do more
51、with what theyve got and ensure a watertight approach to their recent digital investments.Finding confidence in crisisTake a look at almost any graph depicting ecommerce penetration during the past two years and you will see an apparent normalization:a return to the steady pre-pandemic growth line w
52、hich correlates almost to the day with the lifting of stay-at-home orders per country.Some commentators have been quick to call out that headlines touting a five-year ecommerce leap in the space of a few months have now been proved incorrect.The truth is inevitably more nuanced than that.14From pand
53、emic to panacea|The Global Retailers Handbook 22%27%28%23%We have suffered a hit in terms of revenue to our online(ecommerce)and high street business equallyWe have suffered a hit predominatly to our online(ecommerce)businessWe have suffered a hit predominatly to our high street businessNo part of o
54、ur business(online or store)has been negatively impacted by the current economic enviromentThe bells and whistles of ecommerce have been added.Now retailers know they need to get much better at optimizing their core operations,particularly when it comes to payments.Simultaneously,the demands consume
55、rs are making of their ecommerce experiences have shifted,so merchants will also need to pivot their digital strategies to remain competitive and relevant to their customers across all markets.Retailers see larger hit to in-store than online business in 2022Although 2022 will be a tough year for eco
56、mmerce,revenue growth is expected to bounce back next yearGlobal ecommerce revenue in billion US$and growth rates.200202022420252.2402.4202.6323.2663.8433.7484.2844.8375.4228%9%24%18%14%13%12%2%Source:Statista 20221516%17%18%15%31%6%From pandemic to panacea|The Global Retailers
57、 HandbookHow regularly do retail customers spend money online?Budgeters look online in search of dealsPortion of consumers who say that the need to budget means they are more likely to shop online because they can better identify optimum value for their spend.United KingdomFranceItalyPortugalSpainGr
58、eeceGermanyUnited States18%23%18%16%37%36%33%34%39%42%30%37%14%20%24%Several times a monthOnce a week or moreOnce a day or moreOnce a monthUnited Kingdom35%France31%Italy33%5%Portugal36%Spain34%Greece41%Germany30%United States28%7%24%5%6%25%7%23%7%25%6%16From pandemic to panacea|The Global Retailers
59、 HandbookUnited KingdomUnited KingdomFranceFranceItalyItalyPortugalPortugalSpainSpainGreeceGreeceGermanyGermanyUnited StatesUnited States40%74%27%73%25%82%82%83%59%37%29%34%78%23%49%81%38%83%39%86%84%88%72%44%38%49%91%41%53%75%20212022*We did not gather data in the US in 2021More shoppers see benefi
60、ts in ecommercePortion of consumers who say ecommerce has made shopping easier and safer.Shoppers have a more digital mindset than everPortion of consumers who think the future of retail is online.17From pandemic to panacea|The Global Retailers HandbookEcommerce is your gateway to a global market.Bu
61、t to seize that opportunity you have to enable and optimize your cross-border payments.Do you offer the correct local payment methods to reach those key overseas customers?Is your FX being managed optimally?Do you benefit from localized or blended acquiring?And does your payment partner provide Inte
62、rchange+pricing to give you full transparency over the fees you pay for cross-border transactions?If the answer to any of these questions is no,or you are uncertain,then speak to your payments partner to ensure full optimization of the global opportunity.Set up for success Maximize the ecommerce cro
63、ss-border opportunity2021 35%2022 41%Retailers look to the power of digital paymentsPortion of merchants who say that digital payments can revolutionize hybrid retail.18From pandemic to panacea|The Global Retailers Handbook20212022United KingdomUnited KingdomFranceFranceItalyItalyPortugalPortugalSpa
64、inSpainGreeceGreeceGermanyGermany45%20%43%9%52%9%52%15%56%11%11%38%41%53%24%50%14%50%12%55%15%60%9%51%17%57%57%43%13%31%More consumers continue to try out new digital payments for the first timeUnited States*United States*We did not gather data in the US in 2021Digital walletsPortion of consumers wh
65、o used a digital wallet to pay for retail in the past 12 months.Buy Now,Pay LaterPortion of consumers who used a BNPL option to pay for retail in the past 12 months.19From pandemic to panacea|The Global Retailers HandbookUnited KingdomUnited KingdomFranceFranceItalyItalyPortugalPortugalSpainSpainGre
66、eceGreeceGermanyGermany8%7%5%8%21%9%12%7%15%23%6%7%9%17%8%16%7%7%7%11%13%17%28%13%18%15%9%15%20212022More consumers continue to try out new digital payments for the first time8%8%United States*United States*We did not gather data in the US in 2021QR codesPortion of consumers who used a QR code when
67、paying for retail in the past 12 months.Biometric authenticationPortion of consumers who used biometric authentication to make a retail payment in the past 12 months.20From pandemic to panacea|The Global Retailers HandbookUnited KingdomUnited KingdomFranceFranceItalyItalyPortugalPortugalSpainSpainGr
68、eeceGreeceGermanyGermanyUnited States8%34%6%30%11%10%30%12%28%36%5%28%15%35%15%33%10%28%29%14%29%31%15%18%31%25%13%39%35%*20212022More consumers continue to try out new digital payments for the first timeUnited States8%*We did not gather data in the US in 2021First-timersPortion of consumers who sai
69、d they used a new digital payment method for the first time in the past 12 months.Cashless societiesPortion of consumers who think theirs will be an entirely cashless society by 2040.21In line with the growing positive sentiment around ecommerce,we see some significant year-over-year growth in the n
70、umber of consumers engaging in digitized payments experiences.From using digital wallets and BNPL options to opting for biometric authentication,consumers are showing fast-growing maturity when it comes to new and emerging digital payments.Paying within a personal device even in-store is something f
71、or which consumers have increasing appetite along with a view that main street shopping requires greater digitization in order to survive.Thats also a view shared by senior executives within the retail sector as they strive to deliver hybridized and modernized shopping experiences.From pandemic to p
72、anacea|The Global Retailers HandbookAlthough cards remain the most popular payment method in nearly every market,consumers use many other payment methods,too.And these vary market by market.So take the time to understand what payment methods customers want and ensure you offer these at the checkout.
73、For instance,dont try to sell in the Netherlands if youre not offering iDeal.Or,if youre selling to a GenZ audience,make sure youre offering digital wallets and BNPL.Set up for success Allow customers to pay with their preferred payment methods2021 23%2022 31%56%of consumers who cannot pay with thei
74、r preferred payment method are likely to abandon their cart.Retailers increasingly see a cashless futurePortion of retailers who believe we will be operating in a completely cashless society by 2040.22From pandemic to panacea|The Global Retailers HandbookWork with digital experts who can optimize th
75、e global ecommerce opportunityAs retailers look to make the most of their investments in ecommerce channels,they need to partner with digital payments experts who have a deep local knowledge in every market that they seek to serve.An ecommerce strategy needs to take advantage of the global opportuni
76、ty.However cultural,economic,regulatory,and technical differences mean that each country needs its own tailored approach.This complexity can be removed from the merchant when they partner with experts who have local teams on the ground in each market.Similarly,when it comes to running ecommerce in t
77、andem with a bricks and mortar business,an omnichannel strategy does not demand a one-size-fits-all payments approach.Rather digital payments need handling by experienced experts who build solutions to your nuances.Work with a partner who truly understands your ecommerce opportunity and how to push
78、it to its optimum performance.Look for partners who can provide the right local currencies,acquiring,and payment methods to make sure the global opportunity is as lucrative,low-cost,and successful as possible.Insights in action23Retailers|The Global Retailers Handbook3Why payments optimization is mo
79、re business-critical than ever Retailers are leaving millions on the table2427%44%10%30%19%of retailers say that their chargeback rates have increased in the past six monthsof consumers will give up a purchase with a merchant when experiencing a false declineof consumers say that in tight economic c
80、ircumstances they would consider playing the system to get something for nothing,including initiating fraudulent chargebacks this rises to 15%of 18-24 year oldsof retailers say that high false-decline rates pose a very high reputational risk to their businessesof retailers say they have suffered sig
81、nificant amounts of other payment fraud in the past six months3Frames of referenceRetailers|The Global Retailers Handbook25In 2020,C worked with Oxford Economics to calculate that more than$20 billion had been lost by ecommerce businesses in only four countries over 12 months due to falsely declined
82、 payments.In addition,online fraud costs the sector an estimated$35.54 billion a year5.And our year-over-year survey data suggests that the current dip in payments performance could be amounting to significantly more in losses.At its simplest,payments performance comes down to striking a very finely
83、-tuned balance:enabling as many legitimate customers at the checkout,while blocking as many bad actors as possible.High authorization rates and low rates of chargebacks and fraud are the epitome of good payments performance.Though achieving all that at once is no mean feat since the pursuit of one c
84、an be to the detriment of the other without the right support at your disposal.It takes granular data,bleeding-edge technology,and expert guidance.One aspect of the current performance dip seen in the survey data is likely to be linked to the economic climate.An increase in fraud and chargebacks is
85、commonly expected during a cost-of-living crisis.Just as retailers have reported a distressing but anticipated uptick in aggression and shoplifting in stores6,so equivalent behavior is playing out online because consumers are under pressure.A staggering 10%of consumers surveyed admitted that they wo
86、uld consider attempting fraudulent behavior when shopping online if under serious economic pressure and merchants have indeed reported an uptick in chargebacks and significant fraud.However the reported dip in authorization rates may be less seasonal and more a matter of digital immaturity in the se
87、ctor.Retailers|The Global Retailers Handbook3 The silent profit drainThe macroeconomic elements driving todays perfect storm for retailers are well reported.Less frequently discussed is the silent killer of decreased payments performance.If that sounds hyperbolic,then consider the fact that when it
88、comes to authorization rates,mere percentage points can equate to millions in revenue for an enterprise-level retail business.Fraud impacts your bottom line,so its crucial that you work with a payments provider that can help protect your reputation and revenue.Your business will benefit from a custo
89、m risk strategy that leverages transaction data and testing to safeguard you from fraud and adapt to your unique threats in real-time.Choose anti-fraud engines that employ machine learning and artificial intelligence to customize your routing logic,create fraud rule variants,and combine them into ri
90、sk profiles with positive and negative weightings all without causing customer friction at any point of the customer journey.Set up for success Protect your reputation and revenue26Percentage increase in consumer-reported false declines in 2022 compared with 20203False declinesPortion of consumers w
91、hove suffered a false decline in the past four monthsUnited Kingdom31%France33%Italy28%Portugal30%Spain35%Greece30%Germany27%United States28%4+33%35%30%25%18%16%6%238%245%220%187%UKFranceGermanyUnited StatesCountryAgeRetailers|The Global Retailers Handbook27The enterprise r
92、etail businesses surveyed this year report that at least half of their revenue comes from online sales and yet reported authorization rates have dropped significantly when compared with the online retailers we surveyed more than 24 months ago.While many traditional retail behemoths turbocharged thei
93、r online presence during the pandemic,and in doing so managed to ride that tidal wave,the mass pivot is still very recent and there is a large maturity curve for many businesses to climb.Enabling online ecommerce payments was the difference between life and death for many traditional retail brands.N
94、ow,perfecting payments performance will necessarily be the new frontier of revenue success,especially in a time of such economic difficulty.Some in the sector also attribute the reported increase in false declines(and the resulting decrease in authorization rates)to the recently introduced Strong Cu
95、stomer Authentication(SCA)rules.But as we will explore further in the next section,savvy retailers with pace-setting payments partners should not be hurt by SCA compliance on the contrary this should form part of a highly successful performance strategy.390+80%89%70%79%Lower than 70%31%56%12%1%17%25
96、%42%16%Some shoppers will abandon their cart for reasons beyond your control.In those cases,remarket to customers via email or push notification.And make it easy for the customer to complete the purchase by including a payment link,allowing them to pay without restarting the checkout process.Speak w
97、ith your payment partner about how they can support you by providing payment links to increase conversion.Set up for success Re-engage shoppers20202022Authorization rates drop in the past 24 monthsPortion of retailers surveyed.Retailers|The Global Retailers Handbook28Only a quarter of enterprise ret
98、ailers are achieving authorization rates of 90%or more.Thats a 6%drop since 2020.This data appears to be corroborated by an increase in consumer-reported false declines during the same period.Moreover,data suggests that consumers are now even less willing to retry when they encounter a falsely decli
99、ned payment and therefore the margin for error for retailers is even smaller than it was before.For such a low-risk and mainstream sector as enterprise-level retail,these low authorization rates are inadequate.Cs own transaction data shows a consistent authorization rate of significantly over 90%for
100、 its retail customers in 2022.That means the good news is that there is a very real opportunity for the sector to achieve better payments performance,resulting in retailers enjoying significantly higher revenues even in todays climate.3United KingdomFranceGermanyUnited States16%14%13%15%19%20%24%26%
101、Consumers have lost patience with false declinesPortion of consumers who do not buy the item if they suffer just one false decline at the online checkout.20202022Retailers|The Global Retailers Handbook293Work with a payments partner who can deliver top performance metrics False declines are one of t
102、he most expensive mistakes you can make as a retailer.And its a problem hiding in plain sight.If this is your business,you need to work with your payments partner to improve your performance.Look for a partner who enables you to use data to understand where and why payments are failing,and who can g
103、ive you a clear path to improvementYou should also be clear that your payments partner is able to offer you a best-in-class fraud solution that uses machine learning and rules to fine-tune your payments security.Machine learning in conjunction with libraries of fraud rules is a hybrid approach that
104、allows businesses to create a thorough strategy that blocks fraud but not real customers and is responsive to your specific circumstances and business needs.Insights in actionRetailers|The Global Retailers Handbook30How Strong Customer Authentication shapes your revenue successWhats authentication g
105、ot to do with it?Authentication|The Global Retailers Handbook431Authentication|The Global Retailers Handbook426%22%73%of consumers say multi-factor authentication can be slow and annoying,and the same share said they have abandoned a payment due to multi-factor authenticationof retailers say that SC
106、A has already had a positive impact on their payments performanceof all consumers surveyed have encountered multi-factor authentication when shopping ecommerce in the past 12 months,this rises to 76%of consumers in the UK and Europe but not in the USof retailers say that slow and cumbersome payments
107、 pose a very high reputational risk to their businessesof consumers say that multi-factor authentication makes their payment feel more safe and secure68%34%Frames of reference32Most often this amounts to a two-factor authentication(2FA)process involving something you know(a password)and something yo
108、u own(typically a device such as a mobile),and,in some instances,biometrics such as fingerprints or voice may be used.According to figures from the financial industries body,UK Finance,card-not-present purchases accounted for 79%of card fraud cases during 20217.The need for support on ecommerce frau
109、d improvements has long been keenly felt by all in the industry.And while SCA may be legally required now in the UK and Europe,other regions would do well to take note and prepare ahead of time.Indeed our own data alongside multiple other sources suggests that,in the US,multi-factor authentication i
110、s already being used for ecommerce transactions.Retailers share their views on the impact of SCA on their businesses to dateAuthentication|The Global Retailers Handbook4From burden to boonStrong Customer Authentication(SCA)is an initiative designed to reduce fraud,which became a legal requirement in
111、 Europe in late 2020 and in the UK during March 2022.Its part of the European Payments Services Directive 2(PSD2)and aims to make online payments more secure through the use of improved authentication.This is achieved using multi-factor authentication techniques.SCA had a positive impactSCA had a ne
112、gative impactWe anticipate a positive impactWe anticipate a negative impactSCA has had no impactI dont know22%14%37%16%5%5%33Authentication|The Global Retailers Handbook4The more arduous the checkout process,the more likely consumers will abandon their cart.There are clear steps to simplify the proc
113、ess,such as auto-filling fields.But,in the age of Strong Customer Authentication,you must pay particular attention to when and how you ask customers to authenticate.So spend time refining your SCA strategy and use all the tools at your disposal,such as exemptions,to remove the risk of customers aban
114、doning the cart during the authentication flow.Set up for success Streamline the checkout and authentication flowAnd there are encouraging signs that SCA is having a positive impact on driving down fraud and chargebacks in Europe.While it is too early to know the YoY impact on UK card-not-present fr
115、aud from SCA,British retail bank,Nationwide,says the introduction of SCA technology has led to 2,000 fewer cases of fraud each month8.Further,Cs own transaction data shows that where retail merchants have used the most up-to-date SCA-compliant technology(in line with this becoming mandatory or befor
116、ehand)chargebacks have flatlined at 0%.However,SCA implementation has not been plain sailing for all retail businesses and,for some,their initial apprehension has seemed justified.On the surface of it,how can you argue with the objectives of protecting customers,reducing fraud,and increasing payment
117、 security?Nevertheless,there has been significant concern from merchants about how rules for SCA would impact their payments performance.Businesses operating online and the payments industry as a whole feared that extra steps at the digital checkout would frustrate customers and cause cart abandonme
118、nt and an uptick in false declines.Research from open banking platform Nuapay,shows that 99%of merchants they surveyed have seen at least a 5%rise in declined payments since SCA was brought in,with a 37%increase in incomplete payments.Our own survey data shows 26%of consumers have abandoned a paymen
119、t because of a slow and cumbersome authentication process.These all amount to staggering figures in monetary terms for merchants.And,of course,its money retailers can scarcely afford to kiss goodbye to,least of all today.Fortunately,astute merchants have navigated the risks of declines and abandonme
120、nts by using the latest technological advancements,leveraging insights based on data and creating a strategic plan that involves taking advantage of exemptions from SCA requirements.34There are almost as many approaches to SCA as there are online businesses.Thats because a good SCA strategy should c
121、onsider the transaction,the merchant,the customer,the goods or services sold,the issuer,and the risk appetite of the merchant,among other things.Naturally,it should also reflect a merchants overall payments and fraud strategy.One size does not fit all,so accurate payments insights and an expert paym
122、ents partner are critical to supporting a strong SCA strategy.Our survey data suggests that retailers who have ramped up online sales still lack the insights into those sales required to unlock the full value of payments and understand the causes of both fraud and failed payments.In fact,more than 7
123、 in 10 enterprise retailers report having inadequate access to the granular payments data that would empower them to strategize and optimize.There are thousands of data points and optimization routes businesses can use to authenticate a payment optimally,but it can be complex.These data points are f
124、requently changing sometimes daily.And such flux in information,poorly managed,can lead to sudden peaks in payment declines.Hard and soft transaction declines can occur due to changes in issuer preference,new 3DS versions,decommissioning of old versions like 3DS1,changing technology,and even how opt
125、ional data is presented with a transaction.One day an authentication message and route works,the next,no dice which means lost revenue for your business.Authentication|The Global Retailers Handbook472%of retailers say it is not easy to access granular payments data65%of retailers say they have inade
126、quate access to transparent information about the costs of their payments80%of retailers say they have inadequate access to actionable insights about fraudulent transactions and chargebacksAuthentication lies at the heart of your fraud strategy and is key to maximizing acceptance rates.Whether you a
127、re looking to meet SCA compliance or combat fraud,look for a multi-faceted solution to support with unique authentication scenarios that every transaction poses.Smart optimization to get the best chance of issuer approval is a must-have,as is 24/7 global reliability to authenticate,no matter the vol
128、ume.Finally,make sure you work with a provider whose setup doesnt restrict your authentication strategy but works with you to meet your unique objectives without compromising your customer experience.Set up for success Optimize issuer approvals35Authentication|The Global Retailers Handbook4Work with
129、 your payments partner to continuously improve your payments flowBeing armed with the right information and support,your business can develop an authentication strategy that will minimize fraud and maximize conversion winning the trust of your customers while optimizing revenue capture.There are mul
130、tiple ways to implement SCA,ensuring regulatory compliance in a way thats still good for your business.The right payments partner will find the correct approach for your unique needs and should provide easy access to your payments data at a granular level.They should combine this with consultative a
131、dvice and guidance on how to utilize that data to devise a smart SCA performance strategy.Better still,sophisticated machine learning can now provide you with an extra level of fine-tuned authentication support.Insights in action36Why trust is a retailers greatest asset today,more than everPrioritie
132、s have shiftedPriorities have shifted|The Global Retailers Handbook5370Business exposure to RussiaOpportunities to identify deals and salesA slow and cumbersome payment experienceSecurity information on the payments pageHigh shipping costsFree shippingPrice hikesSavings and rewards for lo
133、yaltyInsecure payments and fraudFree returns02020505Frames of reference5Priorities have shifted|The Global Retailers HandbookTop 5 loyalty risks reported by retailersTop 5 must-haves which customers look for in ecommerce38Firstly,as merchants responded with gusto to the desire for thrilling digitize
134、d experiences,these have swiftly become table stakes.Consumers simply expect an enjoyable and seamless shopping experience,wherever they shop.Secondly,as the world has more fully opened up and workers return to their commutes,their school runs,and more normal social lives,so the boredom or spare-tim
135、e factor is less prominent,and the demand for shopping to satisfy the entertainment itch has probably somewhat receded for many.However,the strongest signal from this years research is that the shopping experience still matters tremendously,but the focus has shifted.It stands to reason that as consu
136、mer confidence dwindles and fears for household finances become increasingly serious,so people will more strictly guard every penny they earn.Merchants who want to give their customers a good experience today need to respect the consumer purse and demonstrate that they recognise their customers chal
137、lenges.5 Going back to basicsSet up for success Be upfront about costs and delivery timesHidden shipping costs are the biggest reason for cart abandonment.While shipping fees may be unavoidable,how you present these fees isnt.Be as forthcoming as possible with your shipping costs rather than keeping
138、 them hidden until the final step of the transaction.Also,make it clear how long items will take to be delivered,as this can help avoid unnecessary chargebacks further down the road.In 2021,all signs from our survey results were pointing strongly towards the desire for new and exciting retail ecomme
139、rce experiences.Equally,merchants were forecasting hot trends for hyper-personalization,gamification,social and live-streamed shopping,as well as a range of subscription models including lucky-dip-style packages which delighted shoppers with surprise selections.This years data shows that consumer de
140、sire for flashy UX is muted in comparison.We can decipher a number of factors underlying this relative contraction in appetite.Priorities have shifted|The Global Retailers Handbook39Two key trends which stand out this year are the desire to be rewarded for loyalty and the desire not to have to pay s
141、urprise fees for shipping or returns.Retailers may find what effectively amounts to price cuts painful to contemplate,but they would be wise to consider the competitive advantages any display of goodwill could afford them in todays context.In 2021,the demand for loyalty schemes and free shipping ran
142、ked as negligibly low in the hierarchy of consumer priorities,as captured in our survey.These have since soared to become top priorities for customers.5United Kingdom31%France35%Italy30%Portugal47%Spain48%Greece49%Germany30%United States28%80%of consumers say they abandon their cart if concerned abo
143、ut security51%of consumers say that security information at the online checkout is a must-have featurePriorities have shifted|The Global Retailers HandbookConsumers demand reward for loyaltyPortion of consumers who say that loyalty and reward schemes are a must-have feature when they shop online.40C
144、onversely,consumers are showing signs of caution towards some trends which were roaring just 12 months ago.In 2021,67%of consumers surveyed reported that they wanted to shop via social channels and live-streamed influencer channels.In 2022,that portion stands at a mere 17%.This represents the single
145、 largest percentage point swing across the year-over-year study.Meanwhile,a quarter of consumers now report that they actively distrust influencers who are promoting retail products.Retailers looking to the huge success in Asia have eyed big potential in social shopping and many remain bullish in th
146、e long-term.However,27%of merchants believe that social shopping currently carries a high reputational risk for their business,and they know that cautious consumers want to deal with brands they can trust,and are consciously putting the brakes on impulse purchases.These customers also value payment
147、security extremely highly and want absolute certainty that their transactions are being made with genuine and reputable brands something they dont always feel confident of when shopping in a social channel.Despite the fact that consumers believe we are on the path to becoming a cashless society,90%r
148、eport wanting to use cash for retail spending in the coming 12 months.Indeed several countries have recently reported a steep increase in cash withdrawals.The surge is reportedly in response to peoples desire to better manage their spending,believing cash will give them tighter fiscal control,as the
149、y quite literally count the pennies.On the flip side of this,our survey data shows a slight dip in appetite for retail subscriptions with 17%of consumers having recently canceled such a subscription and only a small portion showing appetite to sign up for new subscriptions.Retailers can actively hel
150、p to become stewards of responsible spending and fiscal control by offering payment methods that give transparency and power to the customer.5Set up for success Boost the sense of security in your social channelsBe extra judicious in your use of influencer marketing during this period and focus on b
151、uilding a transparent and reliable own-brand presence as part of any social shopping strategy.Allow your customers to pay you via personalized and private chat channels by working with a payments partner who provides secure payment links and clear information and assurances about the security of the
152、 transaction.Priorities have shifted|The Global Retailers Handbook41United KingdomFranceItalyPortugalSpainGreeceGermanyUnited States50%65%75%73%81%84%71%14%17%19%16%21%20%13%15%United Kingdom27%France37%Italy18%Portugal21%Spain20%20%Greece17%GermanyUnited States30%520212022Apppetite for social shopp
153、ing contracts sharplyPortion of consumers who are hoping to engage in live and social commerce in the next 12 months.Consumer trust in influencer culture is patchyPortion of consumers who say they actively distrust influencers who are promoting retail brands.Priorities have shifted|The Global Retail
154、ers Handbook*We did not gather data in the US in 202142For example,when it comes to subscription models,smart companies are iterating with variations such as usage-based billing,handing more control and monitoring back to the consumer,and discouraging subscription cancellations.Another example of wh
155、ere merchants can show stewardship and support around spending is through the smart use of Buy Now Pay Later options.Though the underlying concept of retail finance and payment by installments is nothing new,the shift to online has made it far easier for consumers to access credit,and for providers
156、to offer it.The benefits of BNPL to merchants have been well documented with many reporting significant increases in basket sizes and conversion rates.However,the payment trend has also come under increasing regulatory scrutiny as certain commentators question the ethics of marketing credit to young
157、er shoppers with appetites for fast fashion.Of course,it is not in anybodys best interest to facilitate unsustainable borrowing during an economic downturn.Merchants should work with responsible providers who market ethically and give consumers total transparency and control over their spending and
158、borrowing.Additionally,merchants can encourage shoppers to use BNPL options as a means of purchasing higher-quality and longer-lasting goods,helping to prevent the unhelpful false economies of fast fashion.As retailers increasingly report that the line between ecommerce and fintech are blurring,merc
159、hants have a growing opportunity to offer customers compelling and useful embedded finance solutions at the checkout.Indeed retailers report plans well beyond embedded payments to deliver products such as personal finance management tools,insurance,and lending.520%of 18-to 35-year-olds say they are
160、significantly more likely to use BNPL if they have financial problems2022 35%2021 26%Portion of retailers who say that the line between retail ecommerce and fintech is becoming increasingly blurred.Priorities have shifted|The Global Retailers Handbook4354+25%22%16%14%10%6%9
161、%27%25%18%13%9%3%3%United KingdomFranceItalyPortugalSpainGreeceGermanyUnited States12%11%11%14%19%16%38%15%22%21%13%27%21%28%10%BNPL use set to rise but tread with caution Portion of consumers who expect to use BNPL regularly when paying for retail in the next 12 months,according to age.Portion of c
162、onsumers who expect to use BNPL regularly when paying for retail in the next 12 months,according to country.20212022Priorities have shifted|The Global Retailers Handbook*We did not gather data in the US in 2021AgeCountry445Work with payments partners who help you to establish trust with your custome
163、rsShoppers unfamiliar with your brand may hesitate to give up their payment details in whichever channel they may encounter you.This is a feeling thats intensified when you send them to a third-party site to make payment.Avoid this by working with a payments partner who can help you build the checko
164、ut on your domain.And deepen trust by positioning customer reviews,independent ratings,and badges that show your security standards throughout the checkout process.Its also important to work with partners who share your ethical standards and values and can help enable your desire to steward responsi
165、ble spending.Retailers who seek to embed more fintech solutions in their offering should work with innovative and agile payments partners who can help you to build out these capabilities.Insights in actionPriorities have shifted|The Global Retailers Handbook45What it means for retail brandsThe rise
166、and rise of marketplacesMarketplaces|The Global Retailers Handbook4657%60%17%26%38%21%25%of consumers cite marketplaces as their number one preferred ecommerce channelof consumers say it is important to them to know that the brand they shop with is making efforts to improve sustainabilityof consumer
167、s plan to utilize recommerce platforms to sell goods and supplement their incomesof retailers with revenues of more than$1 billion are planning to add an ecommerce marketplace to their ecommerce offering in the next 12 monthsof retailers plan to increase their use of third-party marketplaces to reac
168、h more customersof retailers believe the sector will have significantly improved its sustainability credentials in the next five years,down from 33%who were confident of this in 2021of consumers say they would like to increase their use of recommerce marketplaces to save money and the environmentFra
169、mes of referenceMarketplaces|The Global Retailers Handbook47Every kind of marketplace from luxury,to discount,to recommerce has seen an uptick in sales and popularity.In the case of luxury marketplaces,for example,their ability to aggregate boutique products has attracted affluent consumers unable t
170、o cross physical borders during the travel bans imposed by the pandemic11.Marketplaces that can aggregate deals or one-off items sold second-hand are seeing the benefits of some exciting use cases for which there is high demand.These include the drive towards a more circular economy,the growing popu
171、larity of collectors items and memorabilia12,or indeed simply the growing desire to identify the best possible savings.In fact,as consumers face mounting worries about their personal finances,they report an increased desire to make marketplace selling a regular revenue stream for their households.Ma
172、rketplaces|The Global Retailers HandbookThe trillion-dollar transitionConsumers consistently cite marketplace platforms as their most preferred ecommerce channel.That was the case in 2021,and it has not changed in 2022.Some 57%of consumers surveyed listed marketplace platforms as their number one pr
173、eferred shopping channel for ecommerce.Experts predict that up to 70%of digital commerce will be conducted on marketplace platforms by 20259.Indeed,even before the pandemic,marketplaces were eating up half of global online sales with the top 100 sites alone racking up$2 trillion10.Set up for success
174、 Automate and optimize your marketplace funding flowsScaling your marketplace requires a tailored solution that helps you increase operational efficiency over funding flows in a fast-changing environment.Find a payments provider that works with you to deliver customized seller and buyer experiences
175、that you can define and control at every stage of the journey.Seller onboarding,payments,and payouts all these steps can be automated,optimized,and easily tracked with the right marketplace platform and a payments partner that offers tech built for scale.48Some 60%of consumers report that buying fro
176、m demonstrably sustainable brands is important to them.By stark contrast,only 21%of retailers currently express optimism that their sector will be meeting its environmental targets in the coming years.That is a steep 12 percentage point drop since 2021 and retailers,despite the economic pressures th
177、ey face,would do well to find smart approaches to meet consumer demand and expectations for more sustainable shopping practices.In 2021,the threat of losing market share to marketplace platforms was cited as a key risk by a quarter of retail brands surveyed,as they looked to the year ahead.But the c
178、hallenge is increasingly being construed as an opportunity.Over a third of retail brands are planning to sell more of their products on third-party marketplace platforms,tapping into these powerful channels for greater exposure to new and existing customers alike.Indeed,this is a multi-pronged strat
179、egy as many retailers have found that it is best not to rely on one platform alone.As competition between independent sellers vying for the same customers on these marketplaces heats up,brands are looking to spread their presence across multiple platforms in order to maximize their reach.Now,some br
180、ands have even started to build their own marketplaces for customers to buy and sell their pre-loved goods.Recent months have seen the launch or expansion of resale(or recommerce)initiatives by retail brands.Meanwhile,26%of merchants with annual revenues of$1 billion or more report that they plan to
181、 add such a facility to their ecommerce offering within the next 12 months.The so-called recommerce sector is projected to double over the next five years,reaching$82 billion by 202613.According to the recent ThredUP report,74%of consumers have shopped second-hand online.75%of this segment say that
182、a retail brand hosting a dedicated recommerce platform would increase their brand loyalty and that right now third-party marketplaces remain their main recommerce option.Marketplaces|The Global Retailers HandbookUnited Kingdom33%France25%Italy16%Portugal22%Spain23%Greece21%Germany28%United States23%
183、Secondhand marketplaces find their placePortion of consumers who plan to increase their use of second-hand retail marketplaces in the next 12 months.49Marketplaces|The Global Retailers HandbookUnited Kingdom21%France25%Italy17%Portugal14%Spain16%Greece15%Germany18%United States15%2021 33%2022 21%Bra
184、nd-owned resale platforms allow retailers to regain control of how their goods are presented in the market,owning the entire lifecycle of their products within todays circular economy.It allows them to create new revenue streams,build a community of buyers and sellers,and shift their excess inventor
185、y all while earning credentials as a more sustainable brand.If brands dont have a marketplace strategy in mind,they risk putting themselves at a serious disadvantage.Looking inward will only stretch so far.Merchants also need to look outwards,towards where the most consumer traffic is gathering beca
186、use,as every business leader knows,the market is always right.From hobbies to incomeEnviromental targets are at risk Portion of retailers who think the sector will meet its environmental and sustainability targets.50Marketplaces|The Global Retailers HandbookWork with a payments partner who understan
187、ds marketplaces inside outWhether youre looking to expand your channels by becoming a marketplace seller or taking the leap to building your own platform,ambitious retailers should partner with a payments expert who fully understands the intricacies of marketplace platforms and can give you sound ad
188、vice.For those looking to build their own marketplace,work with a partner who can support you to build your own integrated platforms.Ease of onboarding,seller commissions,split payments,real-time payouts marketplace platforms demand a slick operation when it comes to moving money from buyers to sell
189、ers.Ensure your payments partner can deliver customizable payment experiences and optimized infrastructure to connect you with buyers and sellers at scale.Insights in action51GfK Consumer Confidence Index results,Reuters,2022US retailers ditch talk of Roaring Twenties,Financial Times,2022Statista Ma
190、rket Outlook:Ecommerce/Statista,Ecommerce,2022Mastercard Spending Pulse/Mastercard,Spending Pulse,2021The Future of Fraud Report,First Data,2021Richard Walker,Managing Director,Iceland,BBC1,2022Annual Fraud Report,UK Finance,2022Global Payments Report,McKinsey&Co,2021Win digital marketplaces,McKinse
191、y&Co,2020Growth of online luxury marketplaces,ForbesOver half of Britons consider themselves collectors,The Independent,2019ThredUP Resale Report/ThredUp,Resale Report,2022Crowdfund Insider,2022 112138ReferencesReferences|The Global Retailers Handbook52C is a global payment solutions prov
192、ider that helps businesses and their communities thrive in the digital economy.Purpose-built with performance,scalability,and speed in mind,our modular payments platform is ideal for enterprise retail businesses looking to seamlessly integrate better payments solutions.We offer innovative solutions
193、that flex to your needs,valuable insights that help you get smart about your payments performance,and expertise you can count on as you navigate the complexities of an ever-shifting world.Its why businesses like Farfetch,Sainsburys,Sony,SHEIN,and Frasers Group choose C.Since 2012,weve grown to 2,000
194、 employees in 19 global offices,each one of us passionate about helping thousands of businesses worldwide grow through our next-generation payments platform.Expand effortlessly with the leading cloud-based payments platform built for global businessThe Global Retailers HandbookFind out more at Please direct any press inquiries to 53Find out more at Please direct any press inquiries to 54