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?
It refers to a customer abandoning the products in their shopping cart after initiating an online purchase but failing to (purchase) complete the checkout process.
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
Numbers speak for themselves. Given that shopping cart abandonment is a serious problem for online businesses, we’ve curated a small list of cart abandonment statistics provided by 99firms for a quick overview of the recent numbers that can help you recoup your sales. After all, knowing is winning half the battle!
- An average ecommerce business loses more than 75% of its online sales due to cart abandonment.
- On average, the shopping cart abandonment rate is 67.91%.
- The average mobile cart abandonment rate is 81%.
- Only 2.86% of online shoppers successfully make an online purchase.
- Online visitors abandon nearly $4.6 trillion worth of merchandise each year.
- Optimization of the checkout process can help you recover more or less $260 billion in sales.
- Almost 34% of online customers abandon their shopping cart simply because they aren’t ready to purchase.
- Additional high costs don’t let 23% of online shoppers to initiate the checkout process.
- Approximately 34% of online prospects abandon their shopping carts because they need to create an account to complete the checkout process.
- More than 39% of mobile users abandon their shopping carts as they face trouble providing their personal information.
- Almost 27% of online customers abandon their carts due to slow delivery or poor returns policy.
- Roughly 10% of online shoppers abandon their shopping carts due to the lack of preferred payment methods.
- Nearly 24% of online shoppers abandon their shopping carts simply because the website navigation was too complex for them.
- A massive 78% of online customers abandon the checkout process due to poor service.
- Nearly 46% of online customers abandon their shopping carts when a discount or promo code doesn’t work.
- Re-entering credit/debit cards or shipping information triggered 55% of online customers to abandon their shopping carts.
- If a website fails to load in under 3 seconds, 57% of online customers will leave the store.
- 12% of people abandon a form during an online checkout if there aren’t trust badges.
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!
How To Reduce Shopping Cart Abandonment?
Many reasons behind cart abandonment make it a critical issue to tackle. To reduce cart abandonment rate, begin with addressing the issue at hand. Create a hypothesis about why your online prospects are abandoning their shopping carts?
You can do so by analyzing the analytics data and identifying the dropoff points. Conduct user research and surveys as well as compare your checkout process with the competitors.
Once your hypothesis is in shape, you must perform A/B testing with different solutions and identify which solution can reduce the shopping cart abandonment rate.
For instance, the trust factor is a common issue many online businesses face. Even though, online customers have become comfortable with providing their credit card details online, many online customers are still hesitant to provide their financial information to unfamiliar online entities.
If the trust factor is the reason why your online prospects are abandoning their shopping carts, then you must test different solutions that can help rebuild the trust factor. These solutions may include product reviews, testimonials, incorporating trust seals, featuring pictures of real humans, and offering money-back guarantees, etc.
Moreover, ecommerce businesses must work on improving their conversion rate and increase their profits without spending more on increasing traffic.
Top 5 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.
Regardless, the following cart abandonment solutions can help you reduce your shopping cart abandonment rate and increase conversions if you can manage to resolve them efficiently.
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
To reduce the shopping cart abandonment rate, you must enable guest checkout. As mentioned earlier, 34% of online customers will abandon their shopping carts if they’re asked to sign up or create an account to complete the checkout process.
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 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.
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.
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