New PayPal Survey Reveals Why Canadians Abandon Purchases When Shopping Online

    High Shipping Costs Top the List.

    TORONTO, June 24 /CNW/ - A PayPal survey released today revealed that
over half (56 percent) of online shoppers have abandoned their online shopping
due to higher than expected shipping charges. The average cost of abandoned
goods in Canadian shopping carts is C$156.
    The need to be more up-front about the entire online shopping process is
of critical importance since almost all the shoppers had the intention of
buying the product if their needs had been met. Only three per cent of
Canadians (it was the same for Americans) said they had no intention of
purchasing the item online after filling up the cart and proceeding to the
    "Transparency is increasingly important to buyers," said Darrell
MacMullin, country manager for PayPal Canada. "One of the main reasons people
click on the checkout button is to get information that is not provided by the
online merchant such as shipping costs and other important fees such as
cross-border duties and handling fees. To reduce cart abandonment, merchants
should provide this information sooner in the checkout process."
    To help merchants encourage shoppers to purchase, PayPal today announced
a new Express Checkout feature - the PayPal Instant Update API. By integrating
the new API, merchants can show order details earlier in the process including
shipping options, insurance choices and tax totals.

    Canadians Anxious about Security Online

    The survey also found that despite the growth in e-commerce, Canadians
still feel some anxiety when they click the BUY button when shopping online.
Fifty-one per cent of those surveyed said they typically feel a little anxious
when they make an online purchase. Part of this trepidation comes from the
fact 40 per cent of those surveyed were not overly confident that the merchant
they were buying from could keep their financial information secure. Though
online purchasing anxiety is slightly lower in the US - 45 per cent - only 27
per cent of Americans surveyed had the same concern.
    "Anxiety about paying online is not something new," MacMullin continued.
"Many people still feel anxious about putting credit card and bank account
information online. One of the reasons we're seeing tremendous growth of
PayPal use in Canada is that credit card and bank account information is never
shared with the online merchant."
    Though Canadians are not serial cart abandoners - 75 per cent of those
surveyed said they do it less than once a month (compared to 62 per cent in
the US) - there is a small percentage that is prone to abandoning their carts
frequently. Four percent admitted to doing it on average more than five times
a month.
    Smaller and often lesser known merchants also face some specific hurdles.
Sixty-six per cent of those surveyed said they were reluctant to buy from
stores they'd never heard of because they didn't want to share financial
information. The number is not much different in the US - 62 per cent.
    The survey also found that:
      -  Seventy-eight per cent of Canadians surveyed who abandoned a cart
         knew the site or had bought from it before.
      -  Fifty-two per cent said an ideal payment process would involve just
         one click, no matter where they were shopping.
      -  Forty-three per cent said it takes too long to fill out credit card
      -  Forty per cent of those who abandoned their shopping carts said the
         payment option they wanted to use was not available.
      -  Twenty-five per cent did eventually make the purchase online at the
         same retailer.

    The online survey looks at why people abandon virtual shopping carts
after choosing items to purchase and proceeding to the checkout. The survey of
553 people in the US and 94 in Canada was conducted by comScore between May 12
and May 15 and May 12 and June 2, 2009, respectively. The US survey is
accurate with in +/- 4.2 per cent 19 times in 20. The Canadian survey is
accurate with in +/- 10.1 per cent 19 times in 20.

    About PayPal

    PayPal ( is the faster, safer way to pay and get
paid online. The service allows members to send money without sharing
financial information, with the flexibility to pay using their account
balances, bank accounts, credit cards or promotional financing. With more than
73 million active accounts in 190 markets and 19 currencies around the world,
PayPal enables global ecommerce. PayPal is an eBay company and is made up of
three leading online payment services: the PayPal global payments platform,
the Payflow Gateway, and Bill Me Later. More information about the company can
be found at

For further information:

For further information: Media contact: Environics Communications, Chris
Conrath, (416) 969-2716,

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