Cart abandonment is highly common on eCommerce websites and is the
phenomenon of a visitor, after having picked out items and placed them
in their cart, deciding to not complete the checkout process. That
means, somewhere along the way, the checkout process lost the customer.
Common reasons for cart abandonment
include high shipping costs, slow shipping times, and higher than
expected taxes. There may also be issues with the checkout process
itself, sometimes being too lengthy and/or too complicated. For
eCommerce sites that can understand where they’re going wrong with cart
abandonment, they are more likely to be able to resolve the issue.
The
first step to reducing cart abandonment is in removing the boundaries
that are preventing visitors from completing their purchase. At times,
this might mean offering first-time customers a ‘free shipping’ coupon,
an exclusive discount or something else.
It
is estimated that up to 78 percent of customers may abandon their cart,
with approximately 44 percent of those being directly connected to
shipping – that’s something to think about. Though shipping costs do
need to be paid, if your eCommerce conversion rate is less than 3
percent, covering these costs for first-time customers or for
limited-time periods may be a reliable strategy.
The
next step is creating a sense of urgency. The longer the customer has
to think about making a purchase, the more likely they are to forego it
altogether. Though reducing prices and offering discounts might seem
like a great way to win customers, it might not always work out well for
the bottom line.
There
is some research suggesting shoppers respond more favorably to ‘FOMO’
or ‘fear of missing out’. By creating a sense of urgency such as through
the use of a 24-hour limited time discount, it might be enough to push
them towards making a purchasing decision in your favor. For
non-committal shoppers, it’s recommended.
Thirdly,
always be clear throughout the checkout process. Products should be
displayed in a simple to process format with accurate descriptions,
photos from several angles, and customer reviews showcased somewhere on
the page. The process of checking out should be secure and easy to do.
If online shoppers do not perceive a checkout process to be secure or
safe, they are highly likely to abandon everything and go elsewhere for
the product they are searching for.
If your eCommerce business is struggling with cart abandonment,
you’re not alone. It’s estimated that retailers lose upwards of $18
billion annually as a result of cart abandonment. By working with an eCommerce specialist, you should able to successfully utilize these techniques to see success.
Cart abandonment should be a serious concern for eCommerce companies as they seek to grow their revenues. If your digital marketing
is generating leads but you’re losing them in the checkout process, you
know there’s a problem. Thankfully, there’s almost always a fix.
Always
ensure the customer feels like they are being cared for, that they are
not just a number, and that they won’t regret their purchase. At times,
this might mean offering better pricing and more favorable terms to keep
them on your page and/or with your eCommerce brand. Needless to say,
cart abandonment is always going to be present in eCommerce however one
can successfully limit its impact by employing the right strategies.
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