Cart Abandonment Can Cost You More Than 50% Of Your Online Shop Revenue

Shopping Handbags
Online shoppers often add items to the basket without buying them.

Online shoppers generally add items to the shopping cart within a short time after having arrived on the shop website. Nonetheless many of them leave the shop without buying. Among some of our clients more than 50 % of the visitors start their visit with a full basket. They have obviously stopped the purchase before. This is a remarkably high amount and much revenue lost if they never complete their purchase.

Other online shops experience an even worse situation. The Research Institute Baymard has collected shopping cart abandonment case studies since 2006. The result: The average cart abandonment rate is close to 70 %. The interesting questions are: Why do online shoppers abandon carts? And what can I do as a retailer to prevent it?

The 10 Most Common Reasons For Shopping Cart

A Many reasons for cart abandoned have been identified. A list of the top reasons was recently published as part of the UPS Pulse of the Online Shopper study. In cooperation with the internet analytics company comScore UPS interviewed 5,000 online shoppers and discovered the 10 most common reasons for abandoned carts:

  1. Shipping costs made the total purchase costs more than expected (56%)
  2. My order value wasn’t large enough to qualify for free shipping (45%)
  3. I was not ready to purchase, but wanted to get an idea of the total cost with delivery for comparison (44%)
  4. I was not ready to purchase, but wanted to save the cart for later (43%)
  5. The item was out of stock (42%)
  6. Shipping and handling costs were listed too late during the checkout process (34%)
  7. I needed the product within a certain time frame and the shipping options offered didn’t meet my requirements (28%)
  8. I didn’t want to register/create an account just to make a purchase (27%)
  9. The estimated shipping time was too long for the amount I was willing to pay (26%)
  10. My preferred payment (i.e. bank transfer, debit card, PayPal, Google Checkout) was not offered. (24%)

Solutions For Shopping Cart Abandonment

Let’s have a closer look at the results and what you can do about it. We find four main categories to explain abandonment. The good news is, three categories can be easily dealt with by optimizing your ordering process:  

  • Check-out

The first optimization area is the check-out process. The surveyed customers complained about hidden costs. Create a transparent checkout process and list all accruing charges directly at the beginning. The online shoppers shouldn’t get annoyed by unpleasant surprises at the end of the purchase process.

Another pain point was the obligation to create an account. Offer the possibility to buy your products without an account and make the purchase process as comfortable as possible.

  • Delivery

Online shoppers frequently mentioned the importance of a quick and comfortable shipping process. Guarantee the direct availability of your products and offer the most common shipping options.

Make sure to communicate the guaranteed shipping date and available options prominently on your site. Your potential customers have to find this information at a glance.

  • Pricing

Pricing is an important factor, when it comes to the final check-out. Especially, high shipping costs keep a lot of online shoppers from buying. Offer free shipping or keep the shipping costs as low as possible.

Card Abandonment in the areas of check-out, delivery and pricing can be tackled relatively easy. But there is still one category left, that needs more consideration.

  • Buying Intention

A lot of the interviewed online shoppers mentioned, that they haven’t been ready to buy. They just browsed the shop to look for more information about the product or the shipping. This means these online shoppers are an enormous chance to boost your sales. In general, they are interested in your product and services but they do need a very personal interaction to make sure that they will turn into customers.

Identify And Persuade Relevant Online Shopper

All you need to do is convince them that you have the products for their needs. Easier said than done. How can you identify the promising customer group? And what do you have to do to persuade them? In general, there are two ways to attract them.

The first one is to contact them after they have already left the online shop. A lot of companies try to address their online shop visitors via retargeting. They mark every visitor with a special cookie and show them online ads on other website or on social media. Another solutions is to address them by e-mail. If your visitors have created an account or signed up for an newsletter, it is possible to address them with personalized mailings afterwards.

Personalized campaigns can help you to persuade undecided online shoppers.
Personalized campaigns can help you to persuade undecided online shoppers.

The second solutions is to address online shoppers directly on the online shop while they are seeking for relevant information. It is possible to distinguish between buyers and non-buyers by using an algorithm, called Random Forest. In this way, you can show personalized campaigns only to users, who would not have bought otherwise.

For example, the interviewed people mentioned, they had been looking for the total costs and shipping fees. Why not offering them a voucher for free shipping or a product discount? A lot people mentioned that they just want to learn about the products but necessarily purchase them at your particular shop. Why not highlight additional benefits of purchasing at your shop or offering them free give-a-ways, if they order the product directly?

To sum it up: shopping cart abandonment is a huge problem for online shops, but you can do something about it. It’s your turn. Start optimizing your online shop today and boost your revenue. The following checklist, will help you reach your goal.

Checklist: 6 tips to avoid shopping cart abandonment
Checklist: 6 tips to avoid shopping cart abandonment

If you need help with running personalized campaigns on your online shop, get in contact now. Akanoo engages online-shop visitors with effective campaigns, while they are still surfing the shop site. Unhappy visitors and abandoned carts are avoided and revenues increased.