Before the pandemic, e-Commerce merchants were already experiencing a steady rise in sales as more people sought the convenience and speed that online shopping offers.
It’s a win for both customers and merchants, as customers were able to locate their desired products and services from the comfort of their own homes. Retailers, with their physical stores, did not have to depend so heavily on the foot traffic that was limited to their local neighborhood.
However, like any innovation, the e-Commerce space has not been a stranger to issues. As it continues to evolve at such a rapid pace, there’s always room for improvement, especially in the area of shopping cart abandonment.
What Is Shopping Cart Abandonment?
Shopping cart abandonment occurs when a potential customer begins the checkout process on an online store, but “abandons” the process before they actually complete the purchase. So any product that makes it into the shopping cart but does not undergo the transaction phase is regarded as “abandoned” by that shopper.
Online retailers must be especially vigilant about shopping cart abandonment. A shopping cart abandonment rate is calculated by dividing the total number of completed transactions by the total number of transactions that were initiated. What this rate will tell you is the percentage of a website’s users “signal purchase intent” by dropping a product into the shopping cart, but not completing the purchase.
The shopping cart abandonment rate is an important metric to keep an eye on. A high abandonment rate means that your customers are having a “poor user experience” or even a sales funnel that is broken. If you reduce your shopping cart abandonment rate, then that will translate into more sales as well as revenue.
Ultimately, your goal is to optimize the entire purchase flow so these results actually take place and shopping cart abandonment could be eradicated almost entirely.
The Top 5 Reasons For Shopping Cart Abandonment
There are a variety of reasons why a shopper abandons their shopping cart. Let’s explore the top 5 reasons.
1. Significant costs
Every shopper has a budget in mind when they are shopping for a particular product. When the final costs exceed the set budget the customer had in mind, this becomes an automatic turnoff for the customer. They simply abandon their cart and go elsewhere for a better price.
The costs don’t necessarily have to be tied to the product itself. It can also involve any additional taxes, service fees, and even shipping. All of these additional costs could drive a shopper to abandon their shopping cart.
2. Obligatory account creation
When customers have located the exact item they want to purchase, their sole purpose is to proceed with the checkout process as soon as possible, with little to no complications. These complications magnify when an online retailer requires this new customer to create their online account to proceed with the purchase.
More customers than ever are annoyed by these practices. Their time as well as their patience is limited. This extra step only serves to deter them from moving forward with their purchase. It is considered an unnecessary hassle in this digital age of quickness and seamless. Ultimately, the shopper abandons their shopping cart and goes elsewhere.
3. No thanks, I’m just looking.
The wonder of e-Commerce is that it is literally open 24/7, 365 days a year. Unlike brick and mortar stores, it never closes and customers can spend literally hours “window shopping” and pursuing their virtual shelves, hoping to find something that sparks their interest.
Many times, shoppers are simply bored and want to fill their extra time just looking, with no intent in mind to actually purchase something. Although they may end up filling their shopping carts with a few items, the purchase is never realized due to their “lack of substantial purchase intention”.
4. Insufficient payment options
If there is one thing that consumers continue to demand is options. In this case, multiple payment options. There is a reason that consumers subscribe to multiple digital magazines, streaming services, and subscription boxes. Consumers love variety.
It should not be any different when it comes to payment options. With the latest innovation in digital currencies, digital wallets, and mobile payments, consumers want to take advantage of the latest payment methods to continue to make their lives easier. When a customer sees their preferred payment method at checkout, they are more likely to become a regular customer than when they don’t see it offered. If their preferred payment is not available, they simply abandon their shopping cart and find another online retailer that does.
5. Concerns about website security
Customers are incredibly careful as to whom they share their sensitive credit card information with. If there is any indication on an e-Commerce website where there is the slightest lack of security (e.g., no trust badges, SSL seals, etc.), then the consumer will immediately leave the site and go elsewhere.
By offering these visual representations of security, you are confirming to your potential customers that your site is well equipped with all the latest security measures. This ensures that they can shop on your site with confidence, knowing that their personal financial information is safe from harm.
Some consumers are still reluctant to provide their card information as they do not know how this data will be used by the retailer. It would be helpful if the retailer would indicate on their website how this information is used, easing any customer worries.
Customers want their shopping experience to be as seamless and trouble-free as possible. The goal is to resolving shopping cart abandonment is to remove all friction points that can keep a shopper from becoming a converted customer.
Your shopping procedure must be quick and easy. All of the tips mentioned above should get you back on track so that you no longer lose both potential customers and sales.