[UPDATED] Truth be told, it’s disheartening when an online customer visits your web store, adds different products to the cart but leaves without purchasing anything. The holiday season is here and everyone should reduce their shopping cart abandonment rate during the largest shopping extravaganza of the year!
A Not-So-Fun-Fact: A whopping 98% of online customers will visit your online store but they won’t make a purchase.
Shopping Cart Abandonment is a crucial ecommerce metric that creates a strong impact on overall online sales. This article will help you better understand the reasons why online customers abandon their shopping carts and how you can decrease your cart abandonment rate to generate more conversions.
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What is Shopping Cart Abandonment?
Shopping cart abandonment refers to when a customer ditches their cart in the middle of their checkout process and drops out of the purchase instead of going through with their order,. If an item enters the shopping cart but does not make it through the checkout stage, it is considered “abandoned.” It’s an incredibly important process that retailers pay close attention to.
Shopping Cart Abandonment Rate
You can calculate it as:
Cart Abandonment Rate = The total number of completed transactions / The total number of transactions initiated.
Online businesses must keep track of this important metric because a high abandonment rate signals poor user experience or a broken sales funnel. When you reduce your shopping cart abandonment rate, it directly impacts and generates more revenue for your online business.
Shopping Cart Abandonment Statistics
The following statistics prove that shopping cart abandonment is a serious problem that plagues ecommerce businesses around the globe:
- 98% of customers that visit your website won’t make a purchase.
- The average cart abandonment rate across all industries is around 69.57%.
- Mobile visitors will abandon their cart 85.65% of the time.
- Due to cart abandonment, brands lose $18 billion in sales each year!
- Checkout optimizations can improve conversions by almost 36%.
Shopping Cart Abandonment Reasons
As online merchants, we all know how complex it is to ensure your online visitor becomes your online customer. Many online shoppers add different products to their cart, however, only a few pay and complete the checkout process. Various reasons can force these online prospects to abandon their shopping cart. Some of the core reasons are:
#1 Lack of Trust
Online customers resist providing their sensitive information online, which is why you must improve your conversion rate by developing better trust with your online prospects. You must not only ensure that your web pages are user-friendly but you must also showcase a strong brand image at all times. A clear set of policies in this regard help online customers make their decision swiftly.
#2 High Shipping Costs
At times, the customers abandon the cart simply because the cost of shipping is more than the cost of the product they wish to buy. Offering free deliveries work like a charm. If you cannot afford 100% free delivery, then you can offer delivery promos to attract and convert more customers.
Online prospects with low buying intent will continue to add different products in their carts, however, they will abandon before checkout. You can entice such customers by creating a sense of urgency with flash sales. Incentivizing such a target audience will help you reduce your cart abandonment rate significantly.
We all know that the attention span of online customers is short, and they will abandon your checkout process in the blink of an eye if it is even a tad bit complex.
You must monitor your analytics and review your checkout process consistently to ensure no bug costs you your sale. A comprehensive checkout process also saves the time of customers which ultimately results in higher conversions.
#5 Lack of Payment Solutions
Those who are comfortable shopping online always have their preferred mode of payment(s). They will bounce away if your online store doesn’t offer their preferred payment gateway. You can address this concern by providing all standard but popular payment gateways like PayPal, Western Union, Skrill, Stripe, even 2Checkout or Amex.
#6 High Prices
A frequent online shopper doesn’t mind comparing the prices of different products on different online stores to find the best deals available. You can convert such customers by offering exclusive discounts or coupon codes so that your product becomes the best deal in town!
10 Ways to Reduce Shopping Cart Abandonment
The top reasons for cart abandonment can relate to unexpected costs like shipping fees or taxes, mandatory account creation or signup, and/or a complicated checkout process.
By following the tips given below, you can significantly reduce the number of people who abandon their shopping carts on your site.
1. Offer Free Shipping
Free Shipping is one of the most effective methods of reducing cart abandonment rate. Most of the customers won’t click that Buy button simply because your store doesn’t offer free shipping. At times, the shipping fee of any product is more than the worth of the product itself. Why would any sane online shopper order from that store?
The shipping fee creates a huge psychological difference when your online customers are passing through your checkout process. A high shipping fee can be a deal-breaker whereas free shipping can help you close more sales.
However, If you cannot offer free shipping, then make sure you mention that in your shipping policies clearly.
2. Enable Guest Checkout
A majority of customers, especially first-timers, don’t want to bother with making an account when buying online. Enable a guest check-out to improve sales. It shows that you value potential customer’s time. It can help you reduce cart abandonment rates considerably.
When you enable the guest checkout feature, it will also help you speed up your checkout process. You can always ask your customers to signup or create an account for additional promotions once after they’ve completed their purchase. It is a win-win for everybody!
3. Offer Multiple Payment Solutions
Talking about facts, 10% of online shoppers abandon their shopping carts because the online store doesn’t offer their preferred payment solutions. Some people prefer using PayPal whereas some prefer using Stripe. Many amongst them also prefer to pay via credit cards. The reason being, they are comfortable with these payment processors and would not switch to new options as the online payment processing is a sensitive procedure.
It’s a good practice to offer a mix of a few payment processors so that your online customers do not leave your store. You can even onboard third-party payment processors if need be. Providing your customers with more than one payment solution is an excellent move to reduce shopping cart abandonment.
4. Use Exit-Intent Popups
Exit-Intent popups work as bait when you realize your online prospects are about to leave your web page. When they hover to another tab or they wish to close the existing tab, you can activate your exit intent popup and make them an offer they cannot refuse.
You must put exit popups on every web page. To effectively use these pop ups, you can add them to your product and checkout pages alongside providing a deal, a coupon, or additional information.
5. A/B Test Your Checkout Process
Even if you follow the best practices for an ecommerce checkout process, it’s not 100% guaranteed that you’ll get the desired results. Simply because every website is unique, and you’ll have to test what works best with your target audience.
The best way to do so is by analyzing and evaluating the checkout process of your competition. Feel free to use different tools, forms or surveys to collect your data. Use various A/B testing plugins for your website to accomplish desired goals.
A/B testing or split testing allows you to compare two different versions of your checkout processes and identify which one performs better. It’s a brilliant approach to optimize your checkout process without optimizing everything. It is one of the best methods to reduce the cart abandonment rate for your online business.
6. Establish and Build Trust
Use tactics that establish and build trust in a potential customer, especially when asking them to fill out a transaction form. For instance, adding trust signals in your site can go a long way in improving your shopping cart abandonment rate. People are going to be hesitant when adding their credit card details and other personal information. It’s only natural. You need to understand their hesitance, and give them a reason to trust you.
These might seem simple, but they are there for a reason – to reassure potential customers that their shopping experience is in safe hands. Multiple stores use these, so it’s best that you add these in your website too. If you are using these services, you can easily add the trust signals to your site.
7. Use a Progress Indicator
People hate checkout lines, both digital and physical. But at least when they are standing in a physical line, they can see how many people are up ahead before their number comes up. In a digital line, people often have to go through the hated process of flipping page after page and filling out information, without knowing when they’ll be done.
You need a progress indicator on your website that lets an average customer know just how much longer it will take to complete the process and finalize the transaction. Progress indicators are designed to improve the quality of the checkout process.
8. Add Thumbnails Throughout the Process
People need to know what they are buying, and if you do something that makes them lose sight of the product, they might abandon the cart. To combat this problem, you need to make sure that thumbnails of every product in the cart are added throughout the checkout process.
This way you reduce the risk of distraction, something that affects almost every shopper out there.
9. Use Seamless Navigation Techniques
Many people believe that the checkout page is different from the store, so once they’re in checkout, they can’t go back to the store easily. But what if a customer wants to add something new to their cart? Navigation between the store and the customer needs to be as smooth and seamless as possible to reduce shopping cart abandonment.
Movement between the shopping cart and the store should be done via one-click, so it’s not cumbersome for customers to move around.
10. Improve Page Loading Times
Last but definitely not the least, is your website’s performance. If each page between checkout takes a long time to load, there’s a very strong chance that a customer will abandon the cart. Host your website with a reliable hosting provider like Cloudways to reduce page load times.
However, hosting is just one method to reduce load times. You can trim down the parsing of unnecessary <script> tags. Apart from that, apply AJAX to ensure that your site fetches data directly without requiring a redirect. If there are any images on your checkout pages, you need to compress those as well. Last but not the least, using a CDN can help you reduce page load times considerably.
As mentioned earlier, people get distracted easily. The best way to deal with this problem is by loading pages fast on each stage of the checkout.
By and large,
Shopping Cart Abandonment is a crucial issue and you must not neglect it at any cost. It has the power to make or break your online business. With the holiday season just around the corner, you must ensure your cart abandonment rate is as low as possible.
With the aforementioned tips and tricks, you can conveniently reduce your abandonment rate and entice your online visitors to become healthy customers for your business. Always remember, abandoned purchases don’t mean that your sale is lost. Retarget your lost prospects via email marketing and invite them back to your store helping them complete their checkout.