Online shopping has become a part of daily life for millions of people, but for e-commerce businesses, cart abandonment is a constant challenge. While some abandonments are unavoidable – such as when customers are simply browsing or not yet ready to buy – it’s important to understand the underlying reasons why so many carts are left behind.
Shopping online has increased and so does customers abandoning their online shopping carts? It’s a common phenomenon in the e-commerce industry and it’s something that we, the merchants, need to understand and address to increase our sales.
Abandoned carts are not always the result of a lack of interest in the product. In fact, A latest study by Baymard Institute found that 58.6% of US online shoppers have abandoned a cart within the last 3 months simply because they were “just browsing / not ready to buy”. While this type of abandonment may be unavoidable, it’s the other reasons that can be addressed to help improve the checkout experience for customers.
So, what are the top reasons for cart abandonment? Let’s take a closer look:
Reasons Behind Cart Abandonments
The results from Baymard.com, as well as other surveys and market research, indicate that card abandonment is on the rise due to a variety of factors.
- Extra Costs: 48% of shoppers abandon their carts due to high extra costs such as shipping, tax, and fees.
- Account Creation: 24% of shoppers don’t proceed with their purchase because the site requires them to create an account.
- Slow Delivery: 22% of shoppers opt out of their purchase because of slow delivery times.
- Lack of Trust: 18% of shoppers abandon their carts due to concerns about trusting the site with their credit card information.
- Checkout Process: 17% of shoppers are discouraged by a long or complicated checkout process.
- Upfront Total Cost: 16% of shoppers abandon their carts because they can’t see or calculate the total order cost beforehand.
- Website Errors: 13% of shoppers encounter website errors or crashes, leading them to abandon their carts.
- Returns Policy: 12% of shoppers abandon their carts due to unsatisfactory returns policies.
- Payment Methods: 9% of shoppers abandon their carts because of limited payment options.
- Credit Card Decline: 4% of shoppers abandon their carts due to credit card decline.
- Account Creation Required: 24% of shoppers abandon their carts because they’re asked to create an account to complete the purchase. This can be a big turn off for customers who just want to make a quick and simple purchase.
- Trust Issues with Credit Card Information: 18% of shoppers abandon their carts because they don’t trust the site with their credit card information. A secure checkout process is crucial to building customer trust and retaining sales.
- Complicated Checkout Process: 17% of shoppers abandon their carts because the checkout process is too long and complicated. Customers want a seamless and simple checkout experience and if it’s too complicated, they may lose interest and abandon their cart.
- Limited Payment Methods: 9% of shoppers abandon their carts because there weren’t enough payment methods available. Customers want options when it comes to payment and if their preferred method isn’t available, they may be discouraged from completing their purchase.
5 Tips for Beating Cart Abandonment
Follow these 5 tips to overcome cart abandonment.
- Make Cart Editing a Breeze: Give your shoppers the option to easily make changes to their cart, such as adjusting the quantity, switching to a different color or size, saving items for later, or removing items altogether.
- Offer a Wide Range of Payment Options: Make sure you provide your shoppers with plenty of payment options, so they can choose the one that works best for them.
- Make Guest Checkout a Option: Many shoppers, especially first-time buyers, don’t want to go through the hassle of creating an account just to make a purchase. By offering guest checkout, you can capture those one-time shoppers and turn them into loyal customers.
- Recommend Smartly: Make sure your recommendations are relevant and helpful, but not overwhelming. Stick to 3 recommendations and let your shoppers take it from there. Too many choices can lead to analysis paralysis and increase cart abandonment rates.
- Keep It Simple: Remember, the goal is to make the shopping experience as smooth and stress-free as possible.
How Improved Checkout Can Help You Recapture The Lost Dollars?
Let’s face it, shopping cart abandonment is a frustration we all face in the e-commerce world. But, the silver lining is that a large part of it can be prevented with a well-designed checkout process. That’s right, a study conducted by Baymard Institute found that by improving checkout usability, e-commerce businesses can see a huge increase in conversion rates – up to 35.26%!
Imagine all the dollars lost to cart abandonment being recaptured simply by streamlining your checkout process. It’s not an inevitable part of e-commerce, it’s a challenge that can be overcome. It is not a rocket science, it’s a process that can be improved.
Think of it this way, when you walk into a shopping store, you want to find what you’re looking for quickly and easily and go through the checkout process without any hiccups. The same goes for shopping online. A quick, simple checkout flow will make your customers feel confident and comfortable as they complete their purchase.
So, as you design your checkout flow, keep in mind the goal of making the shopping experience smooth, stress-free and enjoyable for your customers. By doing so, you’ll not only increase conversions but also foster customer loyalty and create a positive brand experience.
Cart abandonments can happen for a variety of reasons, but by understanding the top reasons, you can work to improve the checkout experience for your customers. By addressing the issues of extra costs, complicated checkout processes, website errors, and limited payment methods, merchants can help increase your sales and build customer trust. With our e-commerce services, we can help you create a seamless shopping experience that will reduce cart abandonment and increase conversions. We understand the importance of creating a secure, user–friendly, and efficient checkout process and are here to help you every step of the way. Take the first step towards increasing your conversions and contact us today to see how we can help you achieve success.