What you Need to Know about Cart Abandonment

In ecommerce, abandonment rate refers to the difference between the number of initiated transactions and completed transactions. For example, if you had 100 users reach your site's checkout page, but only 30 finalized their orders, you'd have an abandonment rate of 70%. The majority of lost sales in ecommerce can be traced back to cart abandonment. The abandonment rate for individual e-tailers varies, but averages to about 69%.

There are several reasons why a shopper abandons a cart. Aside from all the users who are just window shopping or researching products (which you can't really control), most carts are abandoned due things like:

  • Complicated checkout process
    • Multiple steps and loading screens
    • Info collection forms that are too lengthy or numerous
    • No option for guest checkout
  • New information
    • Prices that aren't revealed until checkout, like taxes or shipping costs
    • Inflexible return policy
    • Inconvenient delivery timing
  • Limited payment options
  • Privacy or security concerns

As you can see, most causes of cart abandonment boil down to simplicity and convenience. Fortunately, there are many features and preventative measures you can implement to reduce abandonment rates and improve your customers' experience.

Small Ideas to Make Big Improvements to your Checkout Pages

Speed and convenience are the hallmarks of ecommerce. But all too often, these are not reflected in checkout - causing almost 70% of shoppers to abandon their carts at the checkout stage. Any change (however small) that you can make to improve the speed and/or convenience of your checkout guarantees a positive impact on your cart abandonment rates. In this post, we'll go over some easy-to-implement changes to make your checkout process more appealing to customers.
    

Trim the fat

Part of why cart abandonment rates are so high in the ecommerce industry is because, from the customer's perspective, the checkout process is the worst part of shopping online. Filling in forms, creating an account, seeing the bill – surely we can all agree that it's more fun to fill a shopping cart than empty it. From the user’s perspective, the less time and effort they have to spend in the checkout, the better. With this in mind, try to have as few form fields as possible. If your ecommerce site requires account creation to complete a purchase, you may want to consider adding Guest Checkout functionality.

Add more payment options

Alternative payment options, like Google Wallet, PayPal, and Amazon Payments, are designed to securely store users’ information and drastically speed up the checkout process by eliminating the multiple form fields associated with credit card payments. Additionally, the more payment options you can accept, the more customers you can cater to.

Retargeting

When all else fails, you can use remarketing to get shoppers to come back to the cart they've abandoned. Whenever returning customers abandon the shopping cart, you can send out a personalized email asking them if they’d like to complete the purchase or get assistance from your customer service team. You can apply the same strategy to new customers if they've given you their email via any of the sign up incentives you have on your site. You can also use retargeted paid advertising strategies to funnel shoppers back to their abandoned carts.

9 Tips to Lower Cart Abandonment Rates

Cart abandonment is one of the most common ways ecommerce sites lose sales. It’s a ubiquitous problem that happens to even the best sites. But fortunately, there are many features and preventative measures you can implement to improve sales and the customers’ experience.

Be clear on the final cost

Many ecommerce sites notice a huge bounce rate once a customer begins the checkout process and sees the final order total - especially if it has increased since the checkout process started. Since increases are usually due to shipping costs, include an estimated shipping fee as early as possible in the checkout process. Or, eliminate shipping charges altogether.

Don't force shoppers to create an account

Forcing a new customer to create an account with your website before completing a purchase has its pros and cons. While account creation helps you track user behavior and preferences, the process can be perceived as an inconvenience - plus, it adds another layer to what should be the simplest part of your website. In addition to adding "guest" or "express" features to your checkout process, try allowing shoppers to easily create an account via their social media login to ensure that your account base continues to grow.
    

Emphasize Security

In this day and age, customers want assurance that their financial data is safe. Highlight the security features of your site so customers can confidently complete a transaction.

Offer Multiple Payment Options

Alternative payment options like Google Wallet, Amazon Payments, PayPal, etc. help simplify the checkout process, come with built-in security features, and cater to shopper preferences.

Accommodate mobile users

Customers are using mobile devices more than ever before. If your checkout process is confusing or cumbersome on mobile devices, then your cart abandonment rate will likely increase. A responsive design that works on all screen sizes can solve this issue.

Highlight customers support options

Every action in the checkout should be easy to find – especially support options like FAQs, live chat, and other customer service features. Make sure they are clearly available during each stage of checkout.

Auto-apply Coupons

Shoppers become understandably frustrated when they get deep into the checkout process only to find that their discount code doesn’t apply to their order. If your store is having a sale or offering a particular discount, automatically apply the coupon code at checkout, or display coupon codes in a site-wide banner for customers.

Include options to modify orders

Make sure customers can change the quantity, color, size, and other attributes of the items in their order without having to leave the checkout.

Maintain site stability and speed

If your checkout process crashes or loads too slowly, it’s going to cost you sales. Make sure to test it thoroughly and account for potential user actions, like using the browser’s back button.