Cart abandonment significantly reduces conversion rates and leads to substantial revenue losses for e-commerce businesses.
Based on the data, the average cart abandonment rate is 70.19%, highlighting a significant gap between attracting customers and converting them. According to Forrester Research, Shopping cart abandonment currently causes eCommerce brands to lose a staggering $18 Billion in yearly sales revenue.
While it’s a daily challenge for businesses and cannot be eliminated, understanding the reasons behind cart abandonment allows us to take steps to decrease it. Some factors, like customers browsing, comparing prices, or dealing with unexpected financial issues, are beyond our control. However, addressing the avoidable reasons can make a difference.
In this article, we’ll explore the most popular causes of cart abandonment and 6 strategies to boost conversion rate.
What is Shopping Cart Abandonment?
Shopping cart abandonment is when a potential customer starts the checkout process for an online order but leaves the website before completing the purchase. Items added to the shopping cart but not bought are considered “abandoned.” This issue is a key focus for online retailers as it impacts revenue.
The shopping cart abandonment rate is a metric that measures the percentage of online shoppers who add items to their shopping cart but leave the site without completing the purchase. The shopping cart abandonment rate is calculated by dividing the total number of completed transactions by the total number of initiated transactions.
This rate helps identify the proportion of users who show purchase intent but do not follow through, signaling potential user experience or sales funnel issues. Reducing the cart abandonment rate can increase sales and revenue, making it a crucial focus for e-commerce businesses.
Reasons for Shopping Cart Abandonment
Before starting to optimize the cart abandonment rate, the important thing you need to do is identify the main cause of customers leaving the page without making a payment.
In fact, there are many reasons leading to Shopping Cart Abandonment and below are common reasons:
Request to create a personal account
One significant reason for shopping cart abandonment is the requirement to create a personal account before completing a purchase. Many customers find this additional step inconvenient and time-consuming, especially if they are making a one-time purchase or are in a hurry. The process of filling out personal information, creating a username and password, and potentially verifying an email address can be seen as an unnecessary barrier. Additionally, concerns about privacy and data security may deter customers who are reluctant to share their personal information. This requirement can interrupt the seamless flow of the shopping experience, leading to frustration and causing potential buyers to abandon their carts and seek out more straightforward purchasing options elsewhere.
Complicated payment process
Customers may become frustrated and leave without completing their purchase when they encounter a lengthy or confusing checkout procedure. This can involve too many steps, excessive form fields, unclear instructions, or mandatory account creation.
Site speed and application performance issues
When a website loads slowly or experiences technical glitches during the checkout process, customers often need more support and leave before completing their purchase. Slow page load times, unresponsive buttons, or crashes can severely impact the user experience, leading to a loss of trust and confidence in the site’s reliability.
According to web credibility research from Stanford, 75% of users admit to making judgments about a company’s credibility based on their website’s design. So, ensuring a fast, smooth, error-free checkout process is crucial for retaining customers and reducing cart abandonment rates.
High shipping costs
High shipping costs are a significant factor in shopping cart abandonment. When customers see a substantial shipping fee added during checkout, it can deter them from completing the purchase. These unexpected costs can make the overall price less appealing, leading customers to reconsider their decision. Often, they may seek alternative retailers with lower or free shipping options, resulting in lost sales for the business.
No promotions included
Customers don’t see any incentives like discounts, promo codes, or special offers, they may feel they’re not getting the best deal available. This perception can lead them to abandon their cart in search of better prices or deals elsewhere. Including promotions can create a sense of urgency and value, encouraging customers to complete their purchases rather than continuing to shop around.
Delivery time longer than expected
Some e-commerce stores only disclose the expected delivery time at checkout, which can deter customers, especially those needing items urgently. Delivery times often vary based on the customer’s location, particularly for international shipments.
According to an Alix Partners survey, U.S. consumers now accept a maximum delivery time of 4.5 days, a decrease from 5.5 days in 2012. This trend highlights the growing expectation for faster delivery. Items such as perishables and household essentials need quick delivery to maintain quality and meet urgent needs, while custom items and furniture have more lenient delivery windows.
Return and Refund Policy
When customers are uncertain about how to return a product or if they feel the return process is too complicated or restrictive, they may hesitate to complete their purchase.
A survey by Invesp found that 67% of shoppers check the return policy before making a purchase, and 92% of consumers will buy again if the return process is easy. Transparent, hassle-free return policies build trust and confidence, encouraging customers to finalize their purchases. Offering clear and flexible return options can significantly reduce cart abandonment rates.
Restrict payment methods
In the era of technology 4.0, convenience remains a top priority, and today’s customers have diverse payment needs. Common payment methods include:
- Bank Card: The most prevalent payment method on e-commerce sites, including international credit/debit cards (Mastercard, Visa, JCB) and regular domestic debit cards.
- E-Wallet: Digital wallets that provide a quick and secure payment option.
- Bank Transfer: Direct transfers from a customer’s bank account.
- Cash on Delivery (COD): Payment made in cash upon receiving the order.
When a business offers only a limited range of payment methods, it can lead to frustration and prompt customers to abandon their cart more quickly. Providing various payment options helps accommodate different preferences and can reduce the likelihood of customers exiting the payment page.
Payment Security
Customers are cautious about the safety of their personal and financial information when shopping online. Red flags such as outdated website design, the absence of an SSL certificate, unfamiliar brand names, or unknown payment gateways can make customers wary.
According to the Baymard Institute, 18% of consumers hesitate to enter their credit card details on e-commerce sites they don’t trust. Additionally, a lack of social proof, like reviews and testimonials, can further diminish trust. When these security concerns arise, customers are more likely to abandon their carts in favor of sites that appear more secure and credible. To address this, online retailers should implement strong security measures, such as SSL certificates and recognized payment gateways, and showcase social proof through the support of Reputable Apps such as Trustify Reviews Importer to build customer confidence and reduce cart abandonment.
6 Strategies to Reduce Shopping Cart Abandonment Rate
Reducing shopping cart abandonment is crucial for improving your store’s revenue. Here are six strategies to tackle this issue:
Simplify the Checkout Process
Simplify the payment process through these steps: shopping cart > billing info > shipping info > shipping method > preview order > payment > confirmation. Moreover, providing clear instructions can help reduce abandonment rates, and enhance the overall user experience.
For example, implement a single-page checkout where customers can input their shipping and payment details in one go. This reduces friction and makes the process quicker and more user-friendly. Tools like WooCommerce’s One Page Checkout or Shopify’s Checkout Editor can help in creating a more efficient checkout experience.
Offer Multiple Payment Options
Customers have different preferences for payment methods. By offering a variety of payment options, such as credit cards, PayPal, Apple Pay, and even cryptocurrency, you can cater to a broader audience.
For instance, if you’re selling internationally, providing localized payment methods like Alipay or Klarna can significantly reduce abandonment rates. Make sure to prominently display these accepted payment badges during the checkout process to reassure customers that they can pay in their preferred method.
Provide Clear Shipping Information
Display shipping costs and delivery times early in the checkout process to avoid surprises. You can use tools like Shopify’s Shipping Rates Calculator or WooCommerce’s Shipping Zones to provide accurate and transparent shipping information. Offering free shipping for orders over a certain amount can also incentivize customers to complete their purchases.
Implement Exit-Intent Popups
Exit-intent popups can help capture customers who are about to leave your site without completing their purchase. These pop-ups can offer a discount, remind them of their abandoned cart, or provide additional information that might address their concerns. For example, if a customer is about to leave your site, an exit-intent popup could offer a 10% discount on their current cart total to encourage them to complete the purchase.
Use Retargeting Ads
Retargeting ads are a powerful tool to bring back customers who have abandoned their carts. By using platforms like Google Ads or Facebook Ads, you can display targeted ads to users who have visited your site but did not complete a purchase. For instance, if a customer added items to their cart but left without buying, a retargeting ad showing those specific items, along with a reminder of the benefits of your store, can nudge them to return and complete their purchase.
Send Abandoned Cart Emails
Automated abandoned cart emails can effectively remind customers of the items they left behind and encourage them to complete their purchases. Personalize these emails with the specific items they abandoned, and consider including a special discount or incentive to entice them. For example, if a customer left a pair of shoes in their cart, an abandoned cart email could highlight those shoes, include a compelling subject line like “Don’t Miss Out on Your Favorite Shoes – 10% Off Today Only!” and provide a direct link to their cart.
By implementing these strategies, you can significantly reduce shopping cart abandonment and improve your store’s overall conversion rate.
A/B Testing – Best Technique to Reduce Cart Abandonment
A/B testing is a powerful technique for reducing cart abandonment by allowing you to systematically compare different elements of your checkout process to determine what resonates best with your customers. By testing variations in factors such as button colors, call-to-action text, or checkout flow, you can identify which changes lead to higher conversion rates.
For example, testing different versions of a checkout button—one with a prominent color and another with a more subdued shade—can reveal which design encourages users to complete their purchase. Additionally, A/B testing can help optimize your checkout forms by comparing the effectiveness of a simplified form versus a more detailed one. Regularly analyzing the results from these tests enables you to make data-driven decisions, refine your checkout process, and ultimately reduce cart abandonment rates.
FAQs about Shopping Cart Abandonment
1. What role do payment methods play in cart abandonment?
Offering a variety of payment methods can reduce cart abandonment by providing customers with their preferred payment option. Limited payment options can lead to frustration and cart abandonment.
2. How effective are abandoned cart emails?
Abandoned cart emails are highly effective in recovering lost sales. Studies show that these emails have an average open rate of around 21,5%. Personalized and timely emails tend to perform even better.
3. How can trust signals help reduce cart abandonment?
Trust signals, such as security badges, customer reviews and testimonials can help reduce cart abandonment by reassuring customers that your website is secure and reliable. These signals build confidence and minimize hesitation, making customers more likely to complete their purchase.
WRAP UP
Cart abandonment is a significant issue for businesses, often stemming from factors such as unexpected costs, complicated checkout processes, or payment method limitations. Implementing strategies like simplifying the checkout process, offering multiple payment options, and sending targeted follow-up emails can effectively reduce abandonment rates.
Besides, regularly testing and optimizing these strategies by applying A/B testing can provide insights into what works best for your audience. Through this article, businesses can find suitable methods to enhance the overall shopping experience and increase conversion rates.