If you have an eCommerce website you most likely lost a sale because the customer abandoned their cart before checkout. Or maybe they clicked buy, but then never actually got around to completing the sale.
It’s estimated that between 60 and 80 percent of all online shopping carts are abandoned before the customer completes their purchase. And while there are many reasons why this happens – from simple distractions to complex shipping issues – the end result is always the same: lost sales for the business.
Shopping cart abandonment is a problem that online retailers face every day. According to a study by Baymard Institute, the average shopping cart abandonment rate is 69.23%. That means almost 70% of shoppers abandon their carts before completing a purchase. While there are many reasons for this, there are also ways to combat it.
Understanding Why Customers Abandon Their Shopping Cart
Shopping carts are abandoned all the time- it’s an inevitable part of doing business online. Although it’s a frustrating experience, it’s important to remember that not every abandoned cart is a lost cause. There are different stages and psychology of shopping cart abandonment, and understanding these can help you take steps to recover them.
There are many reasons why customers might abandon their shopping carts, but some of the most common include:
A customer might be ready to buy, but then get pulled away by something else. Maybe they got an email notification or a text message. Or perhaps they just got distracted by something else on the internet. In these cases, it’s important to remember that the customer was interested in your product enough to add it to their cart, so there’s a good chance they’ll come back – only if you give them a reminder.
Inconvenient Payment Methods
Picture this: You’re at your favorite online store, scrolling through potential new purchases. You find the perfect dress, shoes, and even the perfect purse to match. Your heart is racing in anticipation as you add each item to your cart. But then, when you go to check out, you’re faced with a long list of inconvenient payment options. You don’t have the right credit card, or you don’t have enough PayPal balance. The moment of excitement quickly turns into frustration, and you abandon your cart in search of an easier way to pay.
Unfortunately, this scenario is all too common. In fact, 21% of shoppers say they’ve abandoned their cart due to inconvenient payment options.
Complicated Checkout Process
Customers want the checkout process to be as simple and straightforward as possible. If they are presented with a long, complicated form to fill out, they are likely to become frustrated and abandon their shopping cart. The best checkout processes are short and easy to understand, with clear directions on how to proceed. Anything that slows down the process, or makes it more difficult to complete is likely to cause customers to abandon their purchase.
People today don’t like to pay for shipping. Even though we all know that shipping is included in the price when a company offers Free Shipping we still accept that better than shipping costs added. If your customers see shipping costs added, they might leave your cart and buy it elsewhere.
Lack of Trust
Trust is a crucial element in any relationship, whether personal or business. When it comes to online shopping, customers need to feel confident that their personal information will be safe and that they will receive the items they ordered in a timely manner. If there’s any doubt in the customer’s mind about the reliability of a website, they’re likely to abandon their shopping cart and look for a site that offers more reassurance.
There are a few simple ways to build trust with potential customers, such as displaying clear contact information, offering social proof (such as customer testimonials), and ensuring that the checkout process is secure. By taking these steps, businesses can create an environment where customers feel confident making a purchase, leading to more sales and happy customers.
Understanding Your Cart Abandonment Statistics
You’ve done it all. You’ve built a beautiful online store, filled it with products you’re passionate about, and worked hard to drive traffic to your site. But you’ve noticed that something strange is happening – people are adding items to their shopping cart, but they’re not completing the purchase. In fact, you’re starting to see a pattern of abandonment.
Don’t despair! Shopping cart abandonment is a common issue that all businesses face. The important thing is to understand your own statistics so you can take steps to improve them.
Here are a few things to keep in mind when looking at your cart abandonment statistics:
What is your overall conversion rate?
This number will give you a good idea of how well your site is performing. If you’re seeing a high number of abandoned carts, but a low overall conversion rate, it’s likely that there are issues with your site that are causing customers to leave before completing their purchase.
What is your average order value?
This number can help you understand how valuable each customer is to your business. If you’re seeing a high number of abandoned carts but a low average order value, there’s a chance that you’re not offering enough incentive for customers to complete their purchases.
What is the average time spent on your site?
Engagement is an important metric to track, as it can give you insight into how interested customers are in your products. If you’re seeing a high number of abandoned carts but a low average time spent on your site, it’s possible that customers are not finding what they’re looking for, or that they’re becoming frustrated with the checkout process.
Tips for Recovering Abandoned Shopping Carts and Increasing Sales
There are a few different ways to go about recovering abandoned shopping carts, and the best approach will vary depending on your business and your customer base. Recovering abandoned shopping carts can be a challenge, but there are a few tips that can help.
Add a Sense of Urgency
One way to combat shopping cart abandonment is to create a sense of urgency. Consumers are driven by fear of missing out, so if they see that an item in their cart is about to sell out, they’re more likely to complete the purchase. You can add urgency by including countdown timers on your product pages or sending Abandoned Cart Emails that highlight the items in the shopper’s cart and explain that they’re in danger of selling out. Doing these simple things might be the push a customer needs to complete their purchase.
Make the Checkout Process Easy and Intuitive
No one likes a complicated checkout process. If customers have to jump through too many hoops, they’re likely to give up and abandon their carts. To avoid this, make sure your checkout process is easy to understand and follow. The fewer steps there are, the better. You should also include clear instructions at each stage of the process. If customers get stuck, they should be able to easily find a help button or live chat option.
Doing these things will help you recover abandoned shopping carts, thus increasing your sales and making you and your customers happy.
Offer a Wide Range of Payment Options
Online shoppers are notoriously fickle. They might add items to their cart, only to abandon it when they get to the checkout page. Or they might start browsing your site, only to click away when they don’t see a payment option that suits them.
To combat this, it’s important to offer a wide range of payment options. The more options you offer, the more likely you are to appeal to a wider range of customers. Some common payment options include credit cards, debit cards, PayPal, Stripe, and Apple Pay. Make sure that you accommodate mobile shoppers by offering mobile-friendly payment options as well.
Offer Discounts or Incentives
When it comes to abandoned online shopping carts, one of the best ways to recover them is to offer discounts or incentives. This could be in the form of a percentage off the total purchase price, free shipping, or a special gift with purchase. By offering something that entices customers to complete their purchase, you can effectively recover abandoned shopping carts and boost your sales at the same time. Most of the time, this simple push is all that’s needed to turn this customer into a paying one.
Include Shipping and Handling Fees in the Price
Shipping and handling fees are often the reason why shopping carts are abandoned. People are willing to add items to their cart, but when they see the added cost of shipping, they’re less likely to complete the purchase.
To avoid this, include the cost of shipping and handling in the product’s price. This way, customers will know exactly how much they need to pay before adding anything to their cart. You can also offer free shipping for orders over a certain amount.
Transparency is a vital part of online shopping, and by being upfront about the cost of shipping, you can increase customer conversion rates and minimize abandonments simultaneously.
Focus on Conversion Metrics that Matter
Not all abandoned shopping carts are created equal. Sometimes, people add items to their cart but don’t complete the purchase because they’re not ready to buy. In other cases, people might be put off by the shipping costs or the checkout process. And in some cases, people might simply change their minds about what they want to buy. Focusing on the conversion metrics that matter will help you figure out which abandonments are worth recovering and which ones aren’t.
Some of the most important conversion metrics to focus on include shopping cart abandonment rate, checkout abandonment rate, and conversion rate. By keeping an eye on these numbers, you can identify problem areas and take steps to improve them.
Use Retargeting to Convert Cart Abandoners into Customers
Retargeting is a powerful marketing strategy that can help you recover shopping cart abandonment and increase sales. By targeting ads to people who have already shown an interest in your product or service, you can more effectively convert them into customers.
There are a few different ways to retarget potential customers:
Show relevant ads to potential customers as they browse the web. This is a great way to keep your product or service top of mind and increase the chances that they’ll come back to your site to complete their purchase.
Target potential customers with ads as they search for related products or services online. This is a great way to re-engage customers who might have forgotten about your product or service.
Social Media Ads
Social media is where potential customers are spending their time, so it’s a great place to remind and target them once more. A simple nudge on Facebook or Twitter might be all it takes to get them back to your site to complete their purchase.
By using retargeting, you can effectively reach potential customers who have already shown an interest in what you have to offer. This makes it more likely that they’ll complete their purchase and boost your sales in the process.
The Bottom Line
Abandoned shopping carts are a common problem for online retailers, but by understanding the reasons behind shopping cart abandonment, businesses can take steps to recover lost sales and increase their overall revenue. In many cases, shoppers abandon their carts because they are simply not ready to make a purchase. However, there are a number of other reasons why shopping carts are abandoned, including shipping costs, hidden fees, and complex checkout processes.
By focusing on the conversion metrics that matter and using retargeting to reach potential customers, the dreaded abandoned shopping cart doesn’t have to be a death sentence for your business. With a little effort, the right efforts, and strategies, you can minimize shopping cart abandonment and boost your sales at the same time.