Clearly, despite investments to attract relevant traffic, the majority of visitors still leave empty handed.
Many retailers continue to struggle with this leaky funnel, and high shopping cart abandonment rates are a key contributor. In this article, we’ll identify the key reasons shoppers abandon their purchases and provide key strategies you can implement to improve your conversion rates.
How Do I Calculate the Shopping Cart Abandonment Rate of My Online Store?
To calculate the cart abandonment rate, divide the total number of completed purchases by the number of created carts. Subtract from one, then multiply by 100.
For example, if you have 300 carts created, and 100 completed purchases, then your cart abandonment rate is 67%.
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Statistics: Shopping Cart Abandonment
Checkout abandonment rates vary based on what industry you’re operating in, what product you’re selling, and who exactly you’re selling to. Based on Baymard Institute’s 2019 research, the average cart abandonment rate is 69.57%.
You don’t need to be afraid if your abandoned rate is even higher than average because this number can vary from the industry and what products you are selling. So for example if you selling bicycle your abandonment rate is pretty low in the summer and pretty high in winter and customer are more likely to buy gears to their bicycle than bicycle itself.
Why are people abandoning shopping carts, and what can you do about it?
People have learned to research their products online before they buy. As a matter of fact, 81% of shoppers do thorough research before making a purchase.
If your website doesn’t provide enough details about a product, shoppers will go elsewhere until they find those details. Depending on what you sell, details that your customers want include item specs, safety regulations, photos at all angles, instructional videos, and reviews.
To prevent people from abandoning your shopping cart, provide these details as much as possible. Research competitors that sell similar products to ensure that your website offers everything they do and more. Also, offer an option to have a live chat with a customer service specialist - this will allow the person to get their questions answered and the business to make the sale.
1. Long or confusing checkout process
Shoppers want to cross the finish line as quickly and easily as possible. A complicated checkout process with many steps and multiple form fills can create friction and slow your shoppers down. Not only does this take away from the current checkout experience on your site, it can also permanently deter them from ever purchasing on your site again.
2. Unexpected shipping costs
The shock of unexpected costs usually occurs after a shopper has entered their shipping information, only to find out they’ve incurred additional charges they didn’t anticipate. Customers may reevaluate their purchase once they see those fees, then abandon their cart if they feel their expectations aren’t being met.
3. Mandatory account creation
Requiring users to create an account before checking out is an unnecessary barrier to purchase. This is particularly true for first time shoppers who may not be quite ready to sign up for an account. Requiring shoppers to create a username and password to complete a purchase adds an extra step to the checkout flow and slows down the order completion process.
4. Payment security concerns
Most customers are, understandably, very cautious about online payments. If they don’t feel safe providing personal information or have concerns that their payment information will not be handled securely, they will not follow through with their purchase.
5. Restrictions on product quantity
Shoppers don’t want to add items to their cart only to find out later that they can’t actually buy them because of restrictions on how much each person can purchase. Being upfront about quantity limits helps set expectations that a product might have limited availability, reducing consumer frustration later.
6. Comparison shopping
People want the best deal possible, so they will likely take the time to do some comparison-shopping. Online shoppers in particular will open your website as well as your competitors, add all of their desired purchases in their shopping cart, and then compare the totals. If all they are looking at is price, then the least expensive cart wins the sale.
To prevent people from abandoning your shopping cart, offer more than just the products. Offer a guarantee. Offer customer support. Find out what your customer offers at that final stage in their shopping cart and make sure your offers are better.
7. Not enough payment options
Just because you are familiar with a particular payment processor doesn’t mean your customers will be. For example, look at PayPal. While millions of people trust PayPal, there are many that don’t even know who they are or have had a poor experience and won’t trust their money with them.
To prevent people from abandoning your shopping cart, you need to offer more than one method of payment. Maybe choose a combination of PayPal plus a standard credit card processor. The more options people have, the more likely they are to make their purchase.
8. Difficult return process and not clear refund policy
Along with security, you need to help your customers feel confident about their purchase. If your customer has to leave the shopping cart to find your return policy, and then has trouble finding it, they may go to a competitor that they trust.
To prevent people from abandoning your shopping cart, include a quick mention of your return policy in the final steps of the shopping process. This mention will boost customer confidence. Include a link with additional details about your return policies that opens up in a popup as opposed to another page.
9. Unexpected delivery times
Shoppers expect their items to be delivered in a reasonable timeframe. If they have to wait too long, the value of shopping online over going into a store is diminished. A customer looking to receive their product by a certain date might choose to look elsewhere instead of waiting for your store to ship.
10. Site speed and app performance issues
A buggy or unstable ecommerce site can cause shoppers to lose confidence in your checkout — or to just get frustrated and leave. Shoppers are less likely to enter their payment information after experiencing an unexpected crash or slow page load times out of fear that they’ll be double-charged for the purchase or that their payment might fail. Moreover your slow page it can has impact on bounce rate and if you have high bounce rate you are paying more for ads in Google ecosystem.
11. No discounts and promo codes to use
Shoppers often find themselves overwhelm with offers and promotions from multiple retailers. Deal-seekers may expect your store to offer similar discounts and, if you don’t, they may choose to buy from your competitor. So showing discount field at the check-out stage can cause more harm to your conversion rate.
12. Lack of Customer Support
An advantage of shopping at traditional brick & mortar stores is that they can offer a level of in-person support that is hard to replicate online, and they can offer the opportunity for a return in store.
Online shopping can create some paranoia around quality of the goods or general worry about what might happen if the product doesn’t fit or meet its intended purpose.
Providing live chat support, community forums, or having a live social media specialist providing real-time support during primary shopping hours is a great way to instill trust before purchase, and help get the abandoning shoppers who have those worries over the hump.
If you have other reasons you’d like to add to the list or maybe you are struggling with some of the same issues with your own e-Commerce site and would like to talk about ways to tackle shopping cart abandoment and turn those churning visitors in to revenue opportunities? If so, we offer a 30-minute consultation where we will go over your online retail strategies, what might be causing cart abadonment.