In this comprehensive guide, we'll explore why customers abandon their shopping carts and offer four actionable strategies to help you reduce this rate, boost conversions, and drive sales.
The global shopping cart abandonment rate still hovers at an alarmingly high level. Even in the face of evolving e-commerce landscapes, research indicates that around 70% of online shoppers add items to their carts but fail to complete the purchase. This staggering figure not only highlights a missed opportunity for merchants but also signals the need for immediate action. In this comprehensive guide, we'll explore why customers abandon their shopping carts and offer four actionable strategies to help you reduce this rate, boost conversions, and drive sales.
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The Prevalence of Cart Abandonment
Why Do Shoppers Abandon Their Carts?
Four Proven Strategies to Reduce Cart Abandonment
The Prevalence of Cart Abandonment
Multinational market research firm Statista's data shows that in recent years, the global cart abandonment rate among online consumers has been approaching 70%. To put it into perspective, for every ten potential customers, approximately seven will add products to their carts, only to abandon the checkout process. What's more concerning is that this rate has been on an upward trend, making cart abandonment an increasingly pressing issue for online retailers.
Why Do Shoppers Abandon Their Carts?
If customers add items to their carts, it's evident that they're interested in the products. So, what prevents them from finalizing the purchase? The UX research company Baymard Institute surveyed over 4,000 U.S. adults to understand the reasons for cart abandonment. Here are the key findings:
Excessive Additional Costs: High shipping fees, taxes, and handling charges account for 48% of cart abandonment.
Forced Account Creation: Requiring customers to create an account to make a purchase is a major deterrent, causing 24% of shoppers to abandon their carts.
Slow Delivery: Long delivery times are a concern for 22% of customers, leading to cart abandonment.
Security Concerns: Worries about website security and credit card safety cause 18% of shoppers to abandon their carts.
Complicated Checkout Process: A long or convoluted checkout process is a factor in 17% of cart abandonments.
Unclear Total Order Amount: 16% of customers abandon their carts due to ambiguity regarding the total cost of their order.
Technical Glitches: Errors or crashes on the shopping website result in 13% of cart abandonments.
Unsatisfactory Return and Exchange Policies: 12% of shoppers are put off by unfavorable return and exchange policies.
Limited Payment Options: 9% of cart abandonments are due to a lack of payment options.
Credit Card Rejection: Credit card payment rejections account for 4% of cart abandonments.
Four Proven Strategies to Reduce Cart Abandonment
1. Streamline the Shopping Process
Simplify Checkout: Baymard Institute's research shows that 24% of shoppers abandon their carts because they're forced to create an account. Offering a “guest checkout” option can encourage customers to complete their purchases first. Later, you can use incentives like membership benefits to persuade them to create an account.
Enhance Checkout Transparency: Since 16% of customers abandon their carts due to unclear total order amounts, it's crucial to clearly display all charges, including shipping fees, taxes, and handling charges, during the checkout process.
Expand Payment Options: Boutir supports a wide range of payment platforms, including credit cards, PayMe, Octopus, AlipayHK, WeChat Pay HK, Tap & Go, and more.. By enabling these services, merchants can meet the diverse payment preferences of their customers.
Optimize Logistics Options: Given that 22% of shoppers abandon their carts due to slow delivery, providing in-store pickup options for customers with physical stores can boost conversion rates. Additionally, offering smart locker or convenience store pickup options can make the collection process more convenient. Boutir’s automated logistics operations can assist merchants in managing delivery arrangements.
Provide Instant Support: Even with comprehensive online store information, customers may still have questions. Offering instant messaging support can address their concerns promptly, increasing their likelihood of completing the purchase. Boutir merchants can use the instant messaging widget to provide customers with easy access to support.
2. Build Customer Confidence
Offer Clear Product Descriptions: Providing detailed and clear product information on your online store can answer many customer questions, deepen their understanding of the products, and increase their confidence in making a purchase.
Clarify Return and Exchange Policies: Online shoppers often worry about product quality since they can't physically examine the items before purchase. Clearly stating your return and exchange policies can alleviate these concerns.
Encourage Customer Reviews: Many online shoppers rely on the opinions of others, especially real customer reviews. Encourage customers to leave reviews by including a note with their order, offering a coupon as an incentive. Positive reviews can enhance the credibility of your products and increase conversion rates.
Ensure Online Security: With the prevalence of credit card fraud, customers are understandably concerned about website security during checkout. Obtaining an SSL security certificate and using payment services with verification features, such as Stripe, can help protect customer data and increase their willingness to complete the purchase.
3. Provide Compelling Incentives
Time-Limited Discounts: A Facebook survey found that 32% of global respondents wait for discounts before making a purchase. Hosting promotional events and offering time-limited discounts during holiday seasons can prompt customers to complete their purchases quickly.
Free Shipping Discounts: Since high additional shopping costs are the most common reason for cart abandonment, offering free shipping for orders over a certain amount can be a powerful incentive for customers to complete their purchases. Boutir merchants can use online promotional activities to offer such discounts.
Exclusive Member Discounts: Offering exclusive member discounts can attract new customers to register as members and reward existing customers for their loyalty. Boutir merchants can utilize the membership tier management feature to provide different levels of discounts to members.
4. Follow-Up with Shoppers
Abandoned Cart Reminders: Sometimes, customers don't intentionally abandon their carts; they may simply be busy or forget to complete the payment. Boutir merchants can use the “abandoned cart reminder feature” to send an email to remind customers to return and complete their orders, improving the conversion rate of the online store.
Retargeting Ads: Boutir merchants can use the “digital ad self-service feature” to run Facebook Dynamic Product Ads (DPA). These ads display products that the visitor has shown interest in, enticing them to return and complete the checkout process.
By understanding the reasons behind cart abandonment and implementing these strategies, you can significantly reduce your cart abandonment rate, retain more customers, and drive the success of your online store. Remember, optimizing your online store is an ongoing process, but with the right approach, you can turn cart abandonments into conversions.
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