Imagine that a prospective buyer decides to purchase an item from your eCommerce site, adds it to the cart, and then decides against buying it. Isn’t this phenomenon, known as shopping cart abandonment, a nightmare for any online retailer?
Wouldn’t you want to find out what made these visitors leave behind a product they had already liked?
In this blog, we explore why abandoned carts have become a bane to the eCommerce business and what can you do to reduce the online shopping cart abandonment rate.
But before we move on to discussing strategies for reducing this, let’s find out how experts define it –
As discussed earlier, the online shopping cart abandonment rate is a clear metric that indicates the health of your checkout process. If it is high, then you need to assess the complexity of the checkout page and find out what’s blocking your conversion.
You can calculate the cart abandonment rate by dividing the number of completed transactions by the numbers of carts created by the customers. Then, you need to subtract the derived value by 1 and multiply by 100 to arrive at the right percentage.
Although average cart abandonment rates vary from industry to industry, a study concluded that 69.80% can be considered as a common yardstick and anything beyond that needs immediate attention.
Research by Barclaycard concluded that UK retailers lose out on more than 18 billion pounds of potential sales due to abandoned carts. However, despite these shocking cart abandonment stats, the awareness amongst UK online merchants is at an all-time low.
6 in 10 online retailers in the UK do not know the average buyer drop-out rate on their eCommerce website and 3 in 10 have never analyzed the months when their eCommerce business witnessed the highest number of abandoned carts.
Clearly, the online merchant community needs an intervention to better manage these issues and figure out the following
And the first step towards achieving these goals begins with understanding the reason behind its increase. Let’s find out what makes customers abandon the shopping carts they spent so much time browsing for –
If we had to summarize all the reasons for the increased cart abandonment rate, we would ask you to have a look at your checkout process from a customer’s perspective and list down the reasons for not going ahead with the transaction.
This simple exercise will help you pinpoint the exact reason for the increased number of abandoned carts in your business.
Meanwhile, you could always use the following strategies to reduce cart abandonment rate considerably.
Pro tip: This becomes crucial in international eCommerce as every country has specific tax regulations. Digital commerce platforms like Magento/Adobe Commerce are great for a global retail business with features that enable multi-store management and tax regulation.
Pro tip: Migrating to Salesforce Commerce Cloud ensures that your digital commerce solutions are well-integrated with all third-party payment options.
Pro tip: Instead of asking a visitor to create an account before they complete the transaction, why don’t you try asking them right after the transaction is over?
Once they have had a hassle-free shopping experience with you, they’re more likely to strengthen the association and sign up as a regular customer.
Pro tip: Try sending the first cart abandonment eMail within the first hour of abandonment for better results.
Let’s face it – abandoned carts are a heartbreaking wake-up call. They suggest that your products/services meet customers’ needs but you need to align your eCommerce solution to optimize the customer experience.
However, there’s a brand new opportunity at the end of this tunnel. Since your products are up to the mark, all you need to do is understand the customer journey better and create a holistic online experience for your visitors!