Ecommerce Quick Takes: 7 Ways To Get Ahead of Shopping Cart Abandonment
Shopping cart abandonment is a problem that most ecommerce retailers have to deal with. It happens when a customer starts the checkout process for an order but doesn’t complete the purchase.
According to Statista, the average cart abandonment rate in 2017 was 69.23%, but this number rose to 88% in March 2020. Findings from several studies on shopping cart abandonment show that on average, three out of four online shopping carts are abandoned without a purchase.
Shopping cart abandonment represents an opportunity lost and a gap in potential conversions. A 65% cart abandonment rate leaves a 97.9% gap in conversions, costing retailers $2 to $4 trillion per year.
While you can’t eliminate shopping cart abandonment, you can understand the common factors that influence it. And thanks to research, you can also learn how to reduce it.
In this guide, you’ll learn:
The significant effects of shopping cart abandonment
The top reasons why people abandon their carts
7 ways to reduce shopping cart abandonment
Shopping Cart Abandonment Effects
The shopping cart abandonment rate is a crucial ecommerce metric to track, as high abandonment rates indicate a poor user experience or flawed sales funnel. When cart abandoners unintentionally (or intentionally) fail to convert (as TikTok activists did to the Trump online store), it contributes negatively to an online store’s inventory and data collection efforts.
When there are more items in an online shopping cart than inventory, the shop will assume that it’s available to sell, affecting inventory planning.
Additionally, shopping cart abandonment impacts data collection because ecommerce store owners cannot tell which of their customers were just messing with them, and which actually had a bad user experience.
Shopping cart abandonment also affects a company’s digital campaign spend because retailers will often reach out to potential buyers with a retargeting campaign.
How To Decrease Shopping Cart Abandonment
According to Baymard Institute, the most common reasons for cart abandonment include additional costs being too high, needing to create an account, and a convoluted checkout process.
Offer free shipping on standard delivery. Charge additional fees for expedited shipping.
Charge shipping for low-value products and offer free shipping for high-value products.
Offer free shipping for a minimum order value.
2. Simplify the Checkout Process
According to Baymard Institute’s survey, 28% of respondents abandoned their online carts because of a complicated checkout process. An additional 37% abandoned their ecommerce shopping carts because the website wanted them to make an account.
Ensure website security and privacy – every consumer is counting on that from you.
6. Inspire Trust With a Secure Website
Ecommerce stores handle sensitive personal and financial information. Give your potential customers peace of mind by ensuring they can trust your website.
According to Baymard Institute’s study, one-fifth of online shoppers said they abandoned carts because they felt like they couldn’t trust the website.
Incorporate website security features, such as password encryption, two-factor authentication, and SSL certificates.
Provide contact details, such as phone numbers or email addresses that customers can use to reach you.
Inspire trust through testimonials, product reviews, and social proof.
7. Retarget Customers Using Abandoned Cart Emails
If the above tips don’t work, you can try retargeting through cart abandonment emails.
Abandoned cart recovery emails are sent to shoppers to remind them of the items they were interested in buying but did not purchase. Usually, these emails include offers such as discount codes and a personalized link to let the customer pick up where they left off.
Abandoned cart emails can be sent using email marketing platforms, although some ecommerce solutions such as WooCommerce may have them built-in.
Use other channels to complement your abandoned cart emails (for example, retargeting, push notifications, Messenger applications, and cold calls).
Leverage automation and personalization.
Use A/B testing.
Final Thoughts: 7 Tips To Effectively Reduce Shopping Cart Abandonment
Shopping cart abandonment is an important metric that online retailers should take into consideration as they plan for and manage their online store. Because shopping cart abandonment directly correlates to sales and revenue, retailers must optimize the user experience and checkout process.
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