Table of Contents
- What is Shopping Cart Abandonment?
- Why are People Abandoning Shopping Carts?
- 1. Technical issues or errors
- 2. Lack of payment options
- 3. Buying In-Store
- 4. Delivery and Return Policies
- 5. The price is too high
- 6. Unexpected Shipping Costs
- 7. Wanted to Compare Prices
- 8. Lack of Trust
- 9. Long and Complicated Checkouts
- 10. Couldn’t find a coupon code
- 11. Having to register before checkout
- 12. Just looking
- 13. Lack of Customer Reviews
- How to Reduce Your Shopping Cart Abandonment Rate?
Digital transformation in today’s evolving landscapes is hard to ignore. A prime example? The swift and savvy embrace of eCommerce by businesses had become a trend long ago.
Today, consumers can shop from their comfy couches, and merchants are not confined to their brick-and-mortar stores. It’s a win-win for everyone. But here’s one highlight – sometimes, even when people really want to buy things, they don’t make the purchase. Perhaps, you might have been in a similar situation too!
At times, even the most enthusiastic shoppers can find themselves caught in the practice of cart abandonment.
In this blog, we are discussing why this happens and what eCommerce businesses can do about it. Here, we will explore tricks to encourage customers to complete the purchase process without the need for endless reminders.
What is Shopping Cart Abandonment?
Shopping cart abandonment occurs when a prospective customer initiates the online checkout process but ultimately abandons the transaction before finalizing the purchase.
This process refers to items that are placed in the virtual shopping cart but remain unclaimed at the end of the transaction journey. For eCommerce retailers, monitoring and addressing shopping cart abandonment is an important aspect of fostering successful online sales.
The shopping cart abandonment rate is calculated by dividing the total number of completed transactions by the overall count of initiated transactions. This rate serves as a gauge of the percentage of a website’s visitors who demonstrate and intend to purchase by adding items to their carts yet do not follow through with the transaction.
Considered an essential metric for eCommerce platforms, the shopping cart abandonment rate is significant for its potential insights into user experience shortcomings and disruptions within the sales funnel. A higher abandonment rate could potentially indicate problems in the purchasing journey or a less-than-optimal user experience. Recognizing the correlation between reducing shopping cart abandonment and amplifying sales and revenue, online retailers place considerable emphasis on refining and optimizing the checkout process, a crucial arena that holds the potential to enhance overall profitability.
Why are People Abandoning Shopping Carts?
Cart abandonment can have a significant impact on eCommerce brands. To counter this challenge, various strategies exist for curbing cart abandonment rates and reclaiming abandoned shopping carts. However, the key to successfully implementing these tactics is understanding the primary reasons behind shopping cart abandonment that deter customers.
Before adeptly deploying these approaches, it is important to understand the chief drivers of shopping cart abandonment. This knowledge can empower you to address the pain points that make customers abandon their carts.
1. Technical issues or errors
Technology is prone to glitches, just like everyday hiccups.
Regularly keep an eye on your analysis and give the checkout process a friendly check-up to keep those pesky bugs at bay. It’s important to ensure your checkout page code is fine-tuned by experts for speedy, hassle-free transactions that put a smile on your customer’s faces, boosting their satisfaction and your sales
2. Lack of payment options
The natural inclination for consumers to seek variety is a common behavior we can all understand. This is evident in our subscriptions to multiple streaming services, our appreciation for a well-crafted buffet selection, and the now pervasive trend of online shopping.
This expectation for diversity also extends to payment methods.
Just as customers expect a range of products and services for their convenience, they also strongly desire the presence of their preferred payment option during the checkout process. It is not surprising that when shoppers do not find their trusted or favored payment option among those provided, they often abandon their shopping carts.
3. Buying In-Store
When customers decide to make their purchase in a physical store, this can actually work to the retailer’s advantage.
It opens up opportunities for cross-selling and upselling, enhancing the shopping experience. Ideally, customers opting for in-store buying will choose the convenient click-and-collect option, creating a bridge between online and offline shopping.
This approach also allows retailers to align online and in-store activities seamlessly.
4. Delivery and Return Policies
Vital information about return policies and warranties often becomes visible to customers after they have added items to their cart. A weak or inadequate return policy can prompt customers to abandon their cart in search of a more favorable buying destination.
Even if they return later, they might be lured away by a more attractive return policy offered elsewhere.
5. The price is too high
Nothing discourages a shopper more than unexpectedly high total costs.
Additional expenses, such as taxes, or other service charges, rank among the primary reasons for cart abandonment. While taxes may be unavoidable, revealing these cumulative costs can still be jarring for customers, negatively impacting their shopping experience.
6. Unexpected Shipping Costs
The sight of unexpectedly high shipping costs frequently leads to abandoned shopping carts, leaving customers taken aback by the final price of their orders after factoring in shipping.
7. Wanted to Compare Prices
Customers naturally tend to ensure they have secured the most favorable price for a product, particularly for items with higher price tags.
Should your pricing prove competitive, customers are likely to return after conducting a swift search. Alternatively, the strategic dispatch of a cart abandonment email might serve as the nudge they require for a purchase decision.
This situation presents a nuanced challenge for certain retailers, as they are wary of engaging in a profit-detrimental race to the bottom in terms of pricing.
Rather than solely fixating on price, retailers can tailor their competitive stance based on product-specific attributes that enhance the overall customer experience. This could include expedited next-day delivery, a well-crafted website design, or additional incentives.
8. Lack of Trust
Not all internet users feel totally okay sharing credit card details online.
To boost the number of people who finish their purchases, you can make them trust your checkout page more. You do this by showing social proof and making your brand really reliable all over your website. Also, having a good return policy can make customers feel better about their worries.
9. Long and Complicated Checkouts
The checkout process of an eCommerce website should always be straightforward. The aim should be to offer a user-friendly, concise checkout experience.
This entails implementing a clean and coherent design coupled with easily comprehensible form fields. In cases where clarity might be compromised, integrating explanatory text within form fields or preemptively addressing potential inquiries.
For instance, imagine trying to purchase a dress online. If met with a complicated and time-consuming checkout process, customers might feel disheartened and abandon their carts due to the undue complexity imposed upon what should be a simple transaction.
10. Couldn’t find a coupon code
Most people are continuously looking out for attractive deals. If your brand appeals to these shoppers, they might add products to their carts before venturing out to uncover online coupons, aiming to secure an even more appealing deal.
Sometimes, customers might choose not to exit your site in search of discount codes, instead opting to use coupon browser extensions. If these astute shoppers fail to get a viable code, their desire to proceed with a purchase might waver.
11. Having to register before checkout
Picture a potential customer scrolling through their Instagram feed when suddenly, a well-tailored advertisement from your brand captures their attention.
The featured product manages to pique their interest, prompting a series of clicks that culminate in a decision to proceed with the purchase. However, it can be off-putting to encounter prompts demanding users to “Create an Account.”
In such cases, it’s entirely logical that many shoppers exhibit a decreased inclination to finalize their orders. Mandating the creation of an account represents another prevalent factor that often dampens the checkout experience for shoppers.
Particularly for newcomers, this requirement can be perceived as an unnecessary hurdle, significantly elongating the checkout procedure. Worse still, it might act as an uncompromising deterrent, ultimately compelling the shopper to abandon their cart entirely.
12. Just looking
Online stores are always open, and shopping doesn’t require more than just looking through a website or app. That’s why people often leave their carts without buying anything, similar to how you might window-shop in a physical store.
Sometimes, folks browse an online store out of boredom or curiosity. They might add things to their cart but then leave without buying because they weren’t really planning to make a purchase.
On the other hand, someone who’s thinking about buying something might change their mind when they see the total cost. The excitement they initially felt can fade quickly when they see how much everything adds up. They start to question if spending that much money all at once is worth it.
13. Lack of Customer Reviews
A customer adds something to their cart but then starts to wonder if they need it at all! They might even think about how long it’ll last or what it feels like. So, they go to the reviews section, but there’s hardly anything there. That’s where they’ll make their decision.
For most shoppers, not seeing reviews is a red flag.
Reviews do more than just make shoppers feel confident about buying. They act like signals of trust. They help customers understand the product better and offer advice from existing customers to new prospects.
Showing customer reviews can make a big difference – it can boost the chances of someone purchasing by 270 percent. This is especially true for things that might feel riskier, like fancy or wearable items.
How to Reduce Your Shopping Cart Abandonment Rate?
As we’re aware, online shopping comes with its own set of conveniences and challenges. However, these challenges don’t have to apply to your store. In most cases, shopping carts get abandoned as the store itself controls them. Here are ways to boost shoppers’ confidence and get them to complete their orders.
Be Transparent about the Costs
Last-minute surprises are never fun, especially when you’re about to check out.
Even if offering free shipping isn’t an option for everyone, retailers need to be upfront about costs. If there’s a shipping charge, make sure shoppers see the costs clearly during the checkout process or on the website so they know what to expect before they start.
Seamless Checkout Process
One of the simplest ways to make the checkout process smoother is by eliminating the need to create an account.
Instead of making new shoppers sign up for an account they might not want, give them the option to place an order as a guest. This makes things really easy for first-time shoppers. Plus, when the checkout process is hassle-free, it leaves a positive impression and might even make shoppers want to return to your site later.
Offer Multiple Payment Options
When a shopper is casually browsing or window shopping, businesses can use different strategies to encourage them to take the plunge.
It could involve enticing offers like free shipping or a discount code. Shoppers typically have a preferred way of paying, depending on the product or service they’re interested in. If you don’t offer their preferred payment option, you might lose them pretty quickly. In the best-case scenario, a shopper might settle for an alternative payment method, which could make them hesitant about returning.
So, why not start things off on the right foot and avoid any unnecessary hassles?
Instill the Feeling of Trust
While it’s impossible to completely erase the concerns of sharing personal or sensitive information like credit card details, retailers can still give shoppers peace of mind in a few effective ways. One approach is to display trust seals that assure shoppers their information is safe.
Beyond just adding basic security measures, there are other ways to foster customer trust. For example, reading positive reviews from happy customers often acts as a reliability check for new shoppers—it’s how they evaluate a company or product. You can boost shopper confidence by showcasing reviews, testimonials, and even photos of real people who are satisfied customers.
Additionally, offering a money-back guarantee can help instill trust and enhance your credibility as a seller.
