How online shopping journeys are changing

Behind every abandoned virtual shopping cart is a customer who almost completed a purchase. Research commissioned by PayPal found that 31 per cent of Australians say they will abandon a purchase if they cannot see the payment method they want to use, while 45 per cent say they will leave if the checkout process is too complicated or requires them to click through too many screens.

As competition intensifies and customer acquisition becomes more expensive, online retailers are paying closer attention to the customer journey itself, examining where shoppers drop out of the purchasing process and how payment visibility and purchasing flexibility influence checkout conversion.

For Jonathan Gregorace, owner of personalised gifting and embroidery retailer The Monogram Shop, those shifts in customer behaviour became particularly noticeable in the years following the pandemic.

Gregorace says customer purchasing behaviour shifted in the years following the pandemic, with shoppers becoming more deliberate about what they bought and increasingly seeking flexibility in how they paid for purchases.

The business also began receiving requests from customers seeking greater flexibility in how they paid for purchases.

“We were able to identify that people were also asking for an old-school layby system for orders as they wanted greater flexibility to make certain purchases and pay over time,” he says.

Similar patterns are emerging across online retail as consumer expectations continue to evolve. Consumers increasingly expect shopping experiences that are simple, secure and flexible, particularly as household budgets remain under pressure and digital purchasing becomes more deeply embedded in everyday life.

Simon Banks, managing director of PayPal Australia, says simplicity remains one of the strongest drivers of online shopping behaviour.

“Consumers have always wanted probably two things when they shop online,” Banks says. “They want something very simple that has very low friction, and they also want something that’s very safe.”

Trust has become particularly important as consumers discover products and retailers through an expanding range of digital channels. Shoppers are often making purchases from businesses they may not have encountered before, making confidence a critical part of the decision-making process.

The PayPal research found that the presence of familiar payment brands can influence how comfortable consumers feel when shopping online.

Banks says trust can affect whether shoppers ultimately complete a purchase.

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