E-commerce store owners spend a significant amount of money on marketing in an attempt to attract potential customers to their stores. However, they notice an increase in the number of visitors without a clear increase in sales.
Why do many visitors stop buying after adding products to the cart? And why do many of abandoned Carts And what is the reason behind nearly 70% of visitors retracting from completing their purchases?
These questions are common among all e-commerce store owners and are frequently voiced to us by many friends and clients. We are here to answer them and any other inquiries you might have as an e-commerce store owner.
What are abandoned carts?
The term 'abandoned carts' refers to the products that online shoppers add to their shopping cart but do not proceed with the payment or complete the purchase process. This phenomenon represents a missed sales opportunity and a loss in store revenues.
Recognizing the importance of this issue, many e-commerce stores use strategies to reclaim at least a portion of the abandoned carts and re-attract these customers, in hopes of completing the sale.
What are the reasons for abandoning the shopping cart?
A significant portion of abandoned shopping cart actions is simply a natural result of how users browse e-commerce sites. Many users will shop on other sites, compare prices, save items for later, explore options, and so on. These scenarios are largely inevitable.
In fact, according to recent studies, 47.8% of online shoppers in the United States, when asked why they didn't complete their last purchase, responded that they were just browsing and were not ready to buy.
Most products will be abandoned even before they are added to the cart. However, if we segment the slice "Just browsing." and instead look at the remaining reasons for abandonment, we get the following distribution:
User Experience Issues:
A confusing store interface can be a significant barrier for shoppers. When users face difficulty navigating the store or struggle to find the products they want, they may become frustrated and decide to abandon their shopping carts.
It's essential for online retailers to design their websites in a way that offers an intuitive and straightforward browsing experience. This allows customers to comfortably explore products and make informed purchasing decisions.
Complex Payment Process:
When faced with lengthy forms or multiple steps to complete the purchase, many users begin to reconsider their buying decision or become annoyed, leading them to exit
Simplifying the payment procedures can make a significant difference in retaining potential buyers
Slow Website Loading Times:
In the digital age, speed matters. When a website takes too long to load its pages, shoppers may lose their patience. Not only does a slow website test the user's patience, but it can also raise doubts about the store's reliability and security.
Unoptimized Mobile Experience:
With a large number of users shopping via their mobile devices, having a mobile-compatible website is of utmost importance.
If the store is not optimized for mobile use or doesn't respond well to touch-based interactions, this could result in a significant number of shoppers leaving.
In the current digital landscape, providing a smooth mobile shopping experience is not just an added feature but a fundamental requirement.
A large number of online shoppers abandon their shopping carts due to additional costs, such as taxes, extra fees, and other hidden charges.
Surprise Shipping Costs:
High shipping fees are consistently ranked among the main reasons for abandoning the shopping cart. When shoppers encounter unexpected shipping costs in the final stage of the purchase process, they often re-evaluate their buying decision.
Some might explore other alternatives that offer better shipping prices, while others may delay the purchase, hoping for a promotional free shipping offer in the near future.
The perceived value of the product greatly influences the customer's purchase decision. If the price seems excessive in contrast to its perceived benefits or when compared to competitors' prices, customers might reconsider and look on other sites to find a more suitable deal.
With the increasing clarity of risks on the internet, online shoppers have become more cautious than ever before.
E-commerce platforms that appear dubious or do not prominently display their security measures can experience higher rates of cart abandonment.
To reassure customers, it's essential for store owners to prominently display security certificates and ensure secure payment procedures..
Many product options:
Customers are often presented with a wide range of product choices. While diversity can be beneficial, overabundance can lead to a phenomenon known as decision fatigue.
These psychological pressures appear when people face too many choices, making it difficult for them to make a decisive decision.
The direct consequences of decision fatigue can include customers procrastinating on making a purchase, or worse, abandoning their shopping cart entirely. For businesses, this indicates potential lost sales.
One effective solution is to simplify product offerings or integrate efficient filtering systems. By doing so, customers can navigate through the options more easily, enabling them to make more confident and timely purchasing decisions.
Detailed Product Information and High-Quality Images:
Transparency and clarity are essential when customers browse online. They heavily rely on product details and its images to gauge the suitability of the product.
Scattered details or poor images can raise doubts in the minds of potential buyers. Companies must provide comprehensive product descriptions accompanied by high-resolution and varied images. This approach ensures that customers have a thorough understanding of what they are buying, increasing the likelihood of completing the purchase.
Customer reviews serve as a valuable social proof in the online shopping system. They allow potential buyers to gauge the quality and reliability of a product based on the experiences of previous purchasers.
When a product lacks reviews, it might suggest to potential buyers that the item is either newly listed or perhaps not popular.
This perception can cause hesitation, making customers more inclined to search for alternative products that have a large number of positive feedback. To instill confidence in customers, companies must encourage satisfied customers to leave comments and highlight the reliability and quality of their products.
Return and Exchange Policies:
The possibility of returning products online is a crucial consideration for many shoppers. The absence of clear return or exchange policies can be a significant obstacle.
If a company doesn't clearly explain its return and exchange policies to its customers, they might abandon the purchase entirely. Conversely, hassle-free policies that are customer-centric can greatly enhance customer confidence, increasing the likelihood of them committing to the purchase..
The Impact of Cart Abandonment on E-commerce Stores:
When a customer doesn't complete a purchase, the direct result is the loss of that sale. Over time, these missed revenues can accumulate significantly, leading to substantial financial setbacks. Every missed sale signifies a potential loss from that customer.
Increased Marketing Costs:
E-commerce stores often allocate a significant budget for online advertising and promotional offers to increase traffic. However, if many visitors abandon their shopping carts, the return on advertising spend becomes suboptimal. This inefficiency leads to an increased actual cost per acquisition.
To recover these lost sales, companies may invest in retargeting campaigns, resulting in increased marketing expenses.
Potential Trust Issues:
A high cart abandonment rate may indicate trust issues. This could be due to a lack of clear product information, confusing payment processes, or concerns about data security.
Continued trust issues can harm the brand's reputation, leading to long-term repercussions.
Although cart abandonment presents challenges, it is not without its positive aspects. It serves as a direct feedback mechanism.
By proactively addressing the underlying reasons and making user-focused improvements, e-commerce stores can turn challenges into opportunities, enhancing a better shopping environment and boosting their sales in the process.
Strategies to Reduce Abandoned Carts:
Improving User Experience for Mobile Devices
As mobile commerce continues to thrive, it's essential for e-commerce platforms to provide a seamless shopping experience across all types of devices. This includes responsive design, quick loading times, and an intuitive user interface designed to fit various screen sizes.
Avoid unexpected costs and detail all expenses, from taxes to shipping fees. Consider implementing price details on the shopping cart page, so customers know exactly what they are paying for.
Simplified Checkout Process
- Allowing purchases without mandatory account registration.
- Meeting customer needs by offering multiple payment gateways.
Utilize the power of retargeting through social media platforms, Google ads, or email. Create campaigns gently reminding users of their abandoned shopping carts, possibly through special offers or other features.
Display Trust Badges
Increase transaction confidence by offering:
- Security Protocols: Highlight SSL certificates and other security measures.
- Special partnerships or memberships with recognized industry bodies.
- Display original reviews to enhance trust..
Offer Competitive Shipping Options:
A flexible shipping policy can impact purchasing decisions.
- Tiered Shipping: Display options like expedited delivery.
- Promotional Shipping Offers: Consider free shipping thresholds to increase average order values.
- Transparent Delivery Times: Clearly communicate estimated delivery times..
Attract visitors who have decided not to buy:
Utilize exit-intent pop-ups that are triggered when the user is about to leave the page. These pop-ups can provide promotional offers, inquire about reasons for incomplete purchases, or simply emphasize product benefits, encouraging the user to reconsider their decision.
Craft Compelling CTA Statements :
Each step of the shopping journey should have a distinctive and compelling Call-to-Action (CTA). Make sure they are visually appealing and suitable for guiding users through the purchasing process.
Integrate Live Chat and Support
Integrate the live chat feature that provides immediate assistance. Addressing customer queries or concerns promptly can prevent product abandonment and even lead to increased sales.
For customers who have abandoned their carts, draft follow-up emails and remind them of the products they left behind. Customize Email messages These are for maximum impact, and consider including incentives such as discounts or limited-time offers to encourage completion.
Abandoned carts present a significant opportunity for e-commerce store owners to increase their sales. Simple optimizations can make a big difference.
Behind every abandoned shopping cart, there is a specific reason - whether it's unexpected costs, a cumbersome payment process, or simply a distracted customer. By delving into these underlying reasons and proactively addressing them, lost opportunities can be turned into successful sales.
As we advance in the digital age, understanding and addressing the reasons for shopping cart abandonment becomes not only helpful but essential for the success of e-commerce.
Take action now: Don't let another sale slip away. Learn how to Website Evaluation Service and request your free consultation.