Online shopping has today become a widespread norm. Customers get to have their pick from a large catalog of items. Adding a product to the cart is just a click away from purchasing it. Or is it? To the dismay of business owners, many customers often have a change of heart and abandon their carts midway through this process. Cart abandonment is, hence, a persistent challenge that most businesses look to overcome. However, before you try to solve the concern of shopping cart abandonment on your eCommerce website, you need to understand more about why your customers are not completing their purchase journey. In this rapidly evolving eCommerce industry, understanding consumer behavior can be the differentiating factor between you and your competitors.
The Average Cart Abandonment Rate Across All Industries is 69.57%. Nearly seven out of ten customers abandon their virtual carts, leaving behind a trail of unrealized revenue and missed opportunities. In fact, in 2023, eCommerce brands are projected to lose a whopping $18 billion in sales revenue due to abandoned carts. These unrealized opportunities can cripple businesses, making it crucial for them to address the root causes of abandonment and implement effective strategies to minimize losses. From unexpected shipping costs to cumbersome and complicated checkout processes, each hurdle presents an untapped potential for improvement. With this knowledge, entrepreneurs and business managers can optimize their eCommerce strategies, leading to higher conversions.
The good news is that you can avoid some, if not all, of these cart abandonment cases. In this blog, we will explore different statistics related to cart abandonment in 2023 to help you gain insight into the reasons for cart abandonment and how to avoid it. This can help you optimize your sales strategy and reduce cart abandonment rates. So, let us get started.
Let’s take a look at 12 reasons why customers may abandon their cart before making a purchase:
1. Added Costs: Additional costs are one of the main reasons for cart abandonment. 48% of customers abandon their carts because of additional costs. Some other reasons related to costs that lead to cart abandonment are high shipping charges or tax costs. Customers usually face issues at that stage due to unexpected extra costs.
2. Account Registration: The requirement for an account is the second top reason for cart abandonment. 24% of customers abandon their carts when asked to create an account at the time of checkout. Most customers view themselves as one-time buyers, so they do not want the hassle of having to create an account for a single purchase.
3. Tedious Checkout Process: 18% of customers abandon their carts due to a complicated checkout process. A checkout process that is lengthy, complicated, and involves too many steps usually ends up frustrating customers and deters them from going through the entire transaction process.
4. Lack of Payment Security: 17% of customers do not trust the websites with their credit card information, which leads to cart abandonment. If customers have had some kind of negative experience with the website or the website does not look secure enough, they may feel hesitant to divulge their credit card information and make the payment.
5. Having To Re-Enter Payment or Shipping Information: A smooth and hassle-free checkout process is vital for retaining customers. If online shoppers have to re-enter their credit card or shipping information, 55% of them will abandon their shopping carts. Implementing secure and convenient payment options like saved payment details can go a long way in preventing this type of abandonment. Offering customers the option to securely save their payment and shipping information for future purchases can significantly streamline the checkout process. Implementing tokenization technology to securely store payment data can also alleviate customer concerns about data security, encouraging repeat purchases and reducing online shopping cart abandonment.
6. Inadequate Return Policy: 11% of customers resort to cart abandonment due to an unsatisfactory return policy. Quite a few times, the return policy can be a hassle for the customers and cause them immense inconvenience, which they do not appreciate.
7. Lack of Multiple Payment Options: 7% of customers end up abandoning their carts as the online stores/websites do not offer a variety of payment options. Even if they do, some of the payment options they prefer may not have been available. This leads to payment constraints and, ultimately, cart abandonment.
8. Technical Challenges: A staggering 57% of shoppers will abandon a site if they have to wait for just three seconds for a page to load, proving how technical issues during checkout play a critical role in cart abandonment. Glitches, errors, slow loading times, or website crashes cause frustration among customers, leading to cart abandonment at the time of checkout or sometimes even prior to that. 12% of customers abandon their carts due to such technical issues. Slow-loading sites increase the cart abandonment rate by 75%. This can also impact the loyalty of customers towards the brand.
9. Elaborate Forms and Fields: Lengthy and complicated forms on the checkout page can be a major turn-off for customers. On average, checkout flows contain 23.48 form elements and 14.88 form fields. Simplifying and streamlining these forms can significantly improve the overall checkout experience, reducing friction and increasing the chances of completing a purchase. Businesses can optimize checkout forms by removing unnecessary fields and consolidating related information. For instance, combining shipping and billing address fields into a single section can save customers time and effort. Implementing autofill features for common fields like names and addresses can also speed up the checkout process and improve user experience. A fully optimized checkout flow with as few as 12 form elements and 7 form fields can be a game-changer for eCommerce businesses.
10. Pricing: 25% of customers abandon their carts if the products are too expensive. Quite a few times, customers reach the end and then abandon the cart as all the items end up costing too much. This is even more true when they are not sure whether the quality of the product is worth the high cost.
11. Long Delivery Time: 16% of customers abandon their cart when the delivery time of the selected item is longer than expected. Usually, customers want their order at the earliest, and delayed delivery time acts as a deterrent for them.
12. Faulty Discount Codes: Discount codes and promotions can be effective in driving sales, but they can backfire if they do not work as expected. About 46% of customers abandon their carts if a discount code fails to apply correctly. Ensuring that all promotional codes are valid and easy to apply can prevent shopping cart abandonment. Testing discount codes thoroughly before launching promotions is crucial to avoid potential issues. Businesses should also provide clear instructions on where and how to apply discount codes during the checkout process. Additionally, displaying a prominent message confirming the discount code’s successful application can reassure customers and encourage them to proceed with their purchase.
Cart abandonment rates also differ according to the industry in which a business operates. Here are some cart abandonment rate statistics by industry:
From the above, it can be made out that cart abandonment has become a persistent issue across most industries in the online space.
The cumulative cart abandonment rate is 72.77% as of March 2023. Here are some cart abandonment rate statistics based on devices:
Mobile phones have the highest cart abandonment rate of 85.65% as they have smaller screens, which makes them less engaging and less likely to turn into a purchase. Another reason that can be attributed to high cart abandonment rates is the outdated websites for mobile phones, which lack several features that are generally present in the apps or other devices. In fact, 39% of mobile users abandon their cart due to difficulties in entering their personal information on small screens. Tablets, on the other hand, perform better than mobile phones due to the better quality of the websites and more intriguing outlay. The information on a tablet is much easier to access, and hence, a customer is more likely to make the purchase. Desktops are the most reliable as they have larger screens compared to mobile phones and tablets and provide convenience while online browsing.
However, with a vast majority of customers using their smartphones to shop, the reality is that optimizing the mobile shopping experience has today become paramount. Factors such as slow loading times, unresponsive designs, and cumbersome checkout processes can drive potential customers away. Businesses must ensure seamless experiences that cater to the needs of on-the-go consumers to capitalize on the mobile market’s potential. Hence, it becomes very important for online businesses to customize their websites to suit different devices for effective targeting and outcomes.
By sending a series of strategic emails that remind customers of the cart items, businesses can encourage their customers to revisit their websites and purchase the items in their cart. A basic reminder email can be sent to the customer after a few hours, another one following after a few days, and free coupons and codes with some more days lapse.
Now that we have discussed the top reasons for cart abandonment, the question that arises for any online business is how to prevent it from happening. Here are some of the ways that can prevent cart abandonment:
1. Free Shipping: 79% of customers are more likely to complete the transaction and purchase the product when free shipping is applied. Displaying the shipping charges early on in the shopping or offering free shipping provides an incentive to customers to make the purchase. Clear communication regarding the different policies, additional charges, and delivery time plays a crucial role in a customer’s decision. All these help in preventing cart abandonment to a great extent.
2. Retargeted Ads: 30% of non-converting shoppers complete their purchase by returning to the website after the use of retargeted ads by online businesses. In fact, if done right, it can bring back 26% of potential customers who have abandoned their carts, providing a second chance to complete their purchase and decreasing the website’s shopping cart abandonment rates. Retargeting works by displaying ads to users who have previously visited a website or added items to their carts. These ads can be strategically placed across various platforms, reminding customers of their abandoned carts and enticing them to return. Businesses can leverage retargeting to offer discounts, limited-time promotions, or personalized product recommendations, creating a sense of urgency and encouraging shoppers to complete their purchases.
3. Seamless Checkout: Creating a streamlined process for the checkout process can lead to reduced cart abandonment. Simplifying the checkout process by reducing the number of steps involved, including a guest checkout option to avoid account creation and showing progress indicators clearly to make it a customer-friendly process. These steps will make the website operations user-centric and prevent cart abandonment. Studies show that by streamlining the checkout process, businesses can increase conversions by an impressive 35.62%. Businesses can also take several steps to improve page load times, such as optimizing image sizes, leveraging browser caching, and using content delivery networks (CDNs) to distribute website content to servers located closer to users. Regularly monitoring website performance and conducting speed tests can help identify bottlenecks and ensure a smooth user experience.
4. Personalized Ads: Personalization is a game-changer in the world of marketing. By tailoring retargeted ads to match individual preferences and past behaviors, businesses can achieve ROIs of over 1,300%, proving the effectiveness of this approach in recapturing lost customers. Personalization is achieved by segmenting customers based on their browsing and purchasing behaviors. Businesses can use this data to create targeted ad campaigns that speak directly to customers’ interests and needs. Retargeted ads become more compelling and effective by displaying products relevant to each customer’s preferences, leading to higher click-through rates and conversions and reduced cart abandonment in the future.
5. Google and Facebook Ads: Websites such as Instagram, Facebook, YouTube, or other sites enable advertisers to show targeted ads for specific people. Facebook and the Google Display Network stand out as the top-performing platforms, and leveraging their reach and targeting capabilities can significantly enhance the success of ad campaigns and reduce shopping cart abandonment.
The vast Facebook audience provides businesses with a tremendous opportunity to reconnect with potential customers who have previously shown interest in their products or services. Through the Facebook Pixel, a snippet of code that tracks website visitors’ interactions, businesses can segment their audiences based on specific actions or behaviors on their website. The power of Facebook’s retargeting lies in its highly sophisticated targeting options. Businesses can create custom audiences that include website visitors, cart abandoners, past customers, or even lookalike audiences who share similar characteristics with their existing customers.
The Google Display Network is another powerful retargeting platform, providing businesses access to an extensive network of websites and apps. The GDN spans over two million websites and reaches over 90% of internet users worldwide, making it a highly effective tool for retargeting campaigns that help reduce cart abandonment. Through Google’s remarketing tags, businesses can track website visitors and create audiences based on specific behaviors.
Cart abandonment remains a significant challenge for e-commerce businesses in 2023. However, this comprehensive article on cart abandonment statistics can provide businesses with valuable insights into customer behaviors and preferences. By simplifying the checkout process, embracing mobile-centric strategies, and leveraging retargeting efforts, online retailers can reduce abandonment rates, recapture lost sales, and thrive in the ever-competitive eCommerce landscape. So, let these statistics guide your strategies and transform your approach to cart abandonment. Embracing innovation and staying responsive to customer needs will be the keys to success in the ever-evolving eCommerce landscape of 2023 and beyond.
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