There is a lot of competition in the eCommerce market. Customers can be distracted while shopping, despite the fact that eCommerce retailers in the United States spend $23.50 billion annually on advertising.
Shopping cart abandonment occurs when customers add items to their shopping carts but then leave the site without making a purchase. Online Shopping cart abandonment can impede potential consumers from making purchases.
With so many people trying to access your online store simultaneously and adding stuff to their shopping carts, bot traffic can slow things down considerably. Because of this, other visitors to the page may have a difficult time using it.
A user’s browsing experience may be hampered if product pages take a long time to load. Your customers will instead be directed to your competitors’ websites. As a precaution, ensure you have all the tools you need to help customers make purchases.
Shopping cart abandonment statistics
Numerous research has been done on cart abandonment rates. Some studies show abandonment rates as high as 80%, while others show abandonment rates as low as 55%.
According to research, the average cart abandonment rate for online stores in 2016 was 77.24 percent. That number rose marginally to 78.65 percent in 2017. This means that more than three-quarters of customers depart the online retailers without purchasing anything.
73.78 percent of carts were abandoned worldwide on Black Friday in 2019. Shopping cart abandonment decreased to 68.94% on Cyber Monday following Black Friday.
According to Forrester’s study, eCommerce firms are currently losing a stunning $18 Billion in annual sales income because of shopping cart abandonment. Since cart abandonment is estimated to cost eCommerce businesses $4 trillion in lost sales this year alone, with the travel sector the most hit in the eCommerce vertical, it’s a problem that can’t be ignored any longer.
The good news is that you have a tremendous chance to enhance income by reusing these abandoned carts significantly.
Cart abandonment solutions are becoming increasingly crucial for eCommerce marketers and online businesses due to the significant economic impact. Shopper abandonment is a serious problem, and this piece will explain why it occurs and how you can help your customers comp
The negative impact of shopping cart abandonment
Cart abandonment costs you more than simply lost sales when customers leave your site without purchasing anything.
Let’s take a look at the negative impacts of shopping cart abandonment.
1. Reduction in conversion rates
The aim of your eCommerce website is to make sales and with every piece of content or page you publish, you want to drive your users down the sales funnel.
This aim can be defeated if customers end up abandoning their carts due to several issues including slow loading time, lack of properly described products, too few payment options and many more.
2. Losing customer lifetime value
Customer lifetime value is a metric for estimating how much revenue your business can expect to make from a single customer over the course of a long-term business partnership.
E-commerce stores require it since it helps them to measure the full financial impact of their marketing efforts and develop customer-focused strategies. It would be awful to lose them.
3. Loss of Revenue
As long as bots are allowed to fill shopping carts, legitimate customers will be unable to make purchases, which will lead to an imbalance in the conversion rate and the cost of attracting customers through sponsored marketing and larger incentives.
4. Waste of time and efforts
Spike in shopping cart abandonment rates Stores that are subjected to the influence of shopping cart abandonment are compelled to alter their marketing and pricing tactics, resulting in a reduction in capital expenditures on labor.
5. Wasted Ad Spend
Spending large sums of money on advertising efforts serves certain purposes. Nevertheless, what if your clients who came from those adverts depart before they buy anything. Yes, your money was a complete waste. So, bear this in mind.
10 ways to prevent or reduce shopping cart abandonment
The following tips will help you reduce shopping cart abandonment and digital shopping cart abandonment on your eCommerce site.
Make shopping online effortless
This is one of the most crucial step in reducing shopping cart abandonment. A few stages as feasible should be included in the checkout process to be completed in the flick of a wrist. A complicated checkout process irritates shoppers. Your checkout pages must contain a progress indicator or bar so that customers can see exactly how long the process will take. Make sure your progress indicators have as few steps as possible.
If a consumer repeatedly presses the “next” button without knowing where it ends, they are more likely to give up and buy elsewhere.
Customers shop on various devices, from smartphones to laptops to desktops to tablets. This is something to keep in mind when designing your website. If you want your customers to be happy, ensure that the checkout process is as straightforward on all devices.
Improve the speed at which pages load
Having a customer ask whether or not their order has been processed is the last thing you want! Fundera claims that the abandonment rate of a shopping cart can rise by 75% if your website takes a while to load. Your customers’ desire for a quick checkout process can be met if your website’s page load time is quick. Customers will be more likely to purchase additional items from your website because of the reduced waiting time.
Display cart sum total after every addition
Providing customers with a breakdown of all costs, including shipping fees, tax rates, estimated delivery date, and any additional fees, helps prevent customers from being surprised by a price increase and also make saving carts effortless.
Each time a customer adds something to their cart, they should be able to see what they’ve already purchased, as well as the entire cost. This keeps people from abandoning their shopping altogether when they see the final bill and are taken aback by the amount they’ve spent.
Provide Real-time Assistance to online shoppers
It is possible to increase sales and prevent shopping cart abandonment by implementing live chat throughout the entire checkout process. It’s a great way to convert shoppers and boost ROI. Having a real-time conversation with a sales agent on eCommerce stores and getting answers quickly helps customers make quick sales decisions.
At this critical point in the customer journey, you can encourage reluctant customers to purchase by engaging with them.
One of the most popular ways to communicate is through live chat. Consider integrating live chats in checkout flow since live chat can provide immediate assistance to customers. It can be an important factor in increasing conversion rates.
You can reduce cart abandonment and increase sales by using live chat as part of your digital customer engagement strategy.
Offer guest checkout option
Customers shopping online prefer eCommerce websites over brick and mortar store because shopping online is fast, convenient, and straightforward. Guest checkout options can help reduce shopping cart abandonment. To ensure you are not missing out on potential customers, make sure they check as guests.
It’s possible that placing the checkout behind a user barrier will discourage new site visitors. Make it possible for customers to use the checkout page as a guest rather than requiring them to create an account. You can ask customers to keep their checkout information on the confirmation page if you want to collect emails and other forms of contact information for promotional purposes.
Allow customers to add things to their wish lists instead of deleting them from their shopping carts if they so choose
Customers may want to buy from you, but they may not be ready to do so immediately. Or, perhaps, they have too many items in their shopping cart and do not wish to purchase in its entirety.
Allow your customers to add items to a wish list. Your customers can quickly return to your site and purchase the products they’ve previously left behind using this feature instead of the delete button.
Provide shoppers with return policy
Offering a money back guarantee can help improve online sales and reduce the shopping cart abandonment rate. Shoppers don’t have the luxury of trying on goods or seeing a product in person, so return policies are critical.
You can also make use of coupon codes. Use Caution When Using Promo Codes Using a coupon code has advantages and disadvantages. On the one hand, they may entice customers to make a purchasing decision. On the other hand, they could deter shoppers from making a purchase. A customer may abandon the site if they don’t have a promo code and never return if they don’t find one.
To inform shoppers to make a purchase, include a noticeable link to your return policy near the beginning of the checkout process. Providing customers with a decent return policy provides them the confidence to buy from you and thus gives shoppers peace. Your return policy should be prominently displayed during the checkout process to inform customers and encourage them to purchase.
Provide multiple payment options
This simple implementation could make the difference between missing out on a sale, getting more sales and making money. Please provide as many payment options, ace checkout flow, and different payment options such as apple pay, so that customers can select the one that is most convenient for them at the moment of purchase. It makes everyone feel like they’ve been taken care of, and you gain more credibility as a result.
To gain your clients’ confidence, display security badges and logos as close as possible to the transaction forms. A reputable business owner would never integrate insecure or fraudulent payment methods into their eCommerce website. Customers are less likely to trust a website if they have to provide personal information and payment details.
If you want to keep up with current eCommerce brands, you should offer a variety of payment methods to your clients. In the checkout process, consider displaying security badges or logos to assure shoppers their information is safe. If people aren’t confident in the site’s security, they won’t give up their payment information and shipping address.
Be transparent about all costs, especially shipping costs
It is critical to maintain complete transparency regarding shipping costs and extra costs. When a last-minute hidden costs is added on shortly before the last stage of the purchasing process, it will turn off buyers and almost certainly result in a sale being lost.
Whenever possible, offer free shipping, even if it means raising product prices a little bit to do so. If you frame the situation correctly, shoppers will feel far more comfortable proceeding with a purchase delivered to them at no additional cost.
You must maintain complete and total transparency concerning all charges, taxes, and fees. When you provide free shipping, shoppers are less likely to abandon their shopping carts.
Use data analytics to monitor shopping cart abandonment
Your online store’s overall success depends on product analytics, and product analytics can help you keep track of why shoppers abandon their carts. Analytics help you analyze your user behavior. Assumptions aren’t helpful in this case.
Your sales numbers could improve dramatically if you collect, analyze, and aggregate your product data. Analyze the process to determine where the consumer is most likely to abandon it and then adjust.
You can reduce the number of abandoned shopping carts and regain lost customers by making your products visible to the correct customers on your eCommerce store or marketplace.
If you want to reduce the number of digital shopping cart abandonment rate, you can use a variety of tactics. One of the greatest approaches is to cast a wide net—identify as many elements that contribute to cart abandonment as you can and then focus on addressing each factor individually.
Many marketing strategies can help boost sales and brand awareness, but few are as effective as discovering ways to convert customers who have already concluded the customer journey.
Want to improve the traffic and conversion of your eCommerce store? Let experts at Milia Marketing help you make more sales with a lot less effort.