Shopping Cart Abandonment is a common behavioral pattern among customers who add products to their shopping carts but leave the shopping site before completing a transaction. According to statistics, most e-commerce businesses suffer from a whopping 50-70% shopping cart abandonment rate! With so many resources and capital being spent on running a website and attracting potential customers through advertisements in different media, this phenomenon can lead to huge losses and may sound like a death knell for small e-commerce sites.
While we can’t control a customer’s thoughts and actions, what we can do is find out the causes of such behaviors and device mitigating tactics.
Let’s look into the most probable causes of Shopping Cart Abandonment:
1. Window Shopping
The first and foremost reason is mainly customers having no intentions to purchase, and were merely window shopping. With pervasive advertisements clogging up our social media and every other website we visit, it’s not surprising that people go to e-commerce sites to simply browse.
2. High Shipping Charges
Data collected from various sources indicate extra or high shipping costs are the second big reason for shopping cart abandonment. Many add products to their cart based on the price displayed and are mentally prepared to prepare only that particular price. The additional shipping prices and taxes in the checkout section serve as a major deterrent for complete transactions.
3. Sign Up Requirement
Many customers have expressed that the requirement of signing up for a new account before making a purchase has stopped them from going through the transaction.
4. Difficulty In Checking Out
Wonky websites and difficult checkout designs discourage customers to go through the entire checkout flow. Some websites are prone to crashing or stopping loading when a customer spends a significant amount of time browsing for products. In this fast-paced world, everyone wants jobs done with a click, no one likes to sit around and wait for slow websites to load or figure out a tricky checkout flow. They move on to other alternatives.
5. Trust Issues
When it comes to payment methods, some customers might be uncomfortable sharing their debit card or credit card credentials. Concerns about payment security and lack of alternate payment methods stop a potential customer from completing the transaction.
Unclear return, refund, and exchange policies or the absence of such facilities dissuade customers from spending their money. Such customer-friendly options are quite important in e-commerce business because it assures the customers that they will not get scammed and receive the product they have paid for. Without such options laid thoroughly, a customer will have no qualms over abandoning their shopping cart no matter how good your products are.
7. No Discounts Or Coupons
A lack of discounts or coupons can drive away customers who have been loyal to your business. There are times when sales, discounts, and coupons are falsely advertised, or there’s deliberate concealment of terms and conditions required to avail of such offers. While this lures the customer to browse and add products to their cart, the price in the checkout flow is more than what they expected to pay.
8. Delivery Time
Slow delivery is also one of the leading causes of shopping cart abandonment rates. Customers looking for products that they need to be urgently dispatched can drop the shopping cart and look for similar products with fast delivery at other sites or do an in-store visit.
To offset this rampant behavior plaguing e-commerce websites, businesses should collect data and information about the main contributing factors specific to their shopping cart abandonment rates and can implement the following steps to minimize it:
1. Email marketing
Though it might be hard to convert people who are just looking through products with no intention of buying into potential customers, businesses can implement a target e-mail approach where they will get regular emails from the business about the products they have left in the cart which might drive them to complete the purchase when their situation permits. Offering guest check-out options can make the checkout process super easy for people who don’t want the hassle of new account creation.
2. Adjust the shipping cost
While removing shipping costs entirely is not feasible for e-commerce businesses, what they can do is include a percentage of the shipping price in the product price itself.
This will show a low shipping rate on the checkout page for the customer and compel them to complete a transaction without much deliberation.
3. Easy Interface
A clean and sleek website with an easy user interface is paramount in attracting customers and convincing them that the business is handled by capable people. A smooth checkout design can remove a customer’s confusion and propel them towards completing the payment.
4. Build Trust
The main foundation of online shopping is ‘trust’ since everything is done digitally. Product reviews, customer ratings, and verified security logos are very helpful in convincing a customer to buy the products they have added to the cart.
5. Proper information
Product landing pages must provide full information about the products and the price, including the sales, discounts, or any other coupons they are included in. The terms and conditions of such offers should be laid open so that a customer is prepared about the price they have to pay before moving into the checkout section.
6. All in one payment gateway
Offering multiple payment options is another simple way to combat this shopping cart abandonment menace. Some might not feel safe sharing their debit card details or some might want to test the credibility of a site by going for cash on delivery for their first purchase. With so many online payment systems available, and their availability varying from place to place, e-commerce businesses should provide customers with different options for a smooth transaction.
Though customers are not a monolith and have different expectations when it comes to shopping, they exhibit some common buying patterns, especially when it’s related to the checkout flow. Completion of a transaction depends a lot on the customer’s ease and comfort with the transaction process, and the price to be paid.
E-commerce retailers should focus on manageable shipping prices, fast delivery, prompt customer services, etc., and giving them a secured payment gateway is the basic thing, get PayPound to ensure a smooth experience for their customers and reduce cart abandonment rates.