Online businesses are losing a huge number of possible sales through high cart abandonment rate. Baymand Institute, a UK online research company, has indicated that shoppers abandon 67.45% of all online shopping carts. That is a huge cart abandonment rate by all standards.
That means that if you are currently making online revenue of $15,000 per month, and you do something about the cart abandonment rate, through some cart abandonment best practices, to bring back just 25% of the prospective shoppers, you are going to make an extra $45,000 annually.
The Baymard study on cart abandonment rate was an average of 22 other individual cart abandonment rate studies. Some of them were giving as high cart abandonment rate as 80.3%. Nevertheless, the most important aspects of such cart abandonment rate studies, for any online entrepreneur, are the reasons why shoppers do not checkout
We are going to look at three of the fourteen reasons of high cart abandonment rate that Statistia
Prospective customers presented with unexpected costs
This ranks high among the reasons for high cart abandonment rate. Up to 56% of prospective online buyers have pointed out unexpected costs as the reason they did not complete an online purchase.
The unexpected costs include those that come to the knowledge of buyers when they are about to check out, but are not indicated on the original purchase page.
Slow or crashing website is a source of high
Ecommerce businesses that have their websites hosted by Shopify alongside other cart abandonment best practices, save their customers from these predicaments and, therefore, keep cart abandonment rate low. The same cannot be said of those that choose to host with low cost service providers.
Apart from the risk of crashing, the low cost hosting arrangements also make sites, especially those with huge traffic, to load slowly, which in itself can result in high cart abandonment rate.
Price presented in a foreign currency
The online environment has no international boundaries and most ecommerce retailers are forced to make arrangements for international orders. This, however, often comes with the challenge of currency, which leads to high cart abandonment rate.
It becomes difficult for a shopper to know exactly how much they are paying for a product. Any business that can sort this out locks their visitors in and thus experience low cart abandonment rate. Nordstrom a company based in the US is one of the brands that have been able to fix this problem and most customers are able to transact in their local currency.
Approaches to reducing shopping cart abandonment
To solve the problem of high cart abandonment rate, you will have to approach it from two fronts: Before Cart Abandonment and After Cart Abandonment
Before cart abandonment
Bringing down cart abandonment rate while the customer is still on the website is the proactive approach and includes doing the following:
1. Using clear images
Few customers find it convenient to buy products that are presented to them in just plain text. You should present customers clear images of the items on sale. Many brands understand this and have invested in the right technology for good image presentation to reduce cart abandonment rate. The essence of shopping is looking, comparing and selecting.
2. Using security logos to boost confidence
The internet is full of scams and other forms of theft. Give confidence to those who visit your website by using appropriate security logos. The study by Statistia study shows that retailers get a cart abandonment rate of 17% because of security concerns. Get Elastic, did a test on an online retailer on this particular subject and found that it got 4-6% more complete cart checkouts after attaching a security logo on their site. It is significant, however, to test the effect of the placement style and how it impacts on the cart abandonment rate.
3. Testing and finding one that works between single and multi page checkout
There are studies that shown single-page checkout to be more effective than multi-page. However, some retailers have reported better results on cart abandonment rate when they use multi-stage. It is important to do your own tests and find what works for your site. If you choose multi-page checkout, do not forget to include a progress bar for showing the customer their progress.
4. Making the process of editing the cart easy for the customer
Let customers have an easy way of rectifying their cart mistakes. Otherwise, you risk high cart abandonment rate and them finding other easy to use options.
5. Providing different payment methods
Always expand your payment method options as per the need of the customers. Nevertheless, test the performance of each of these options on your page. The common that are in use are Visa, Mastercard, American Express and Paypal. FreshGigsreduced their cart abandonment rate by 15% after including American Express in their payment methods.
6. Giving customer support
A toll-free telephone number and a chat box on the checkout page are some of the best ways to reduce cart abandonment rate by helping shoppers with issue instantly.
7. Avoiding unnecessary registrations processes
Most online shoppers find being forced to register before completing a purchase a big turnoff. A research done by User Interface Engineering indicated that a business can reduce cart abandonment rate by up to 45% when there is no forced registration on their checkout page.
8. Giving free shipping shoppers
According to a study done by Deloitteonline retailers reduce cart abandonment rate by about 69% when they offer free shipping services while, according to a ComScore study, 61% of shoppers would quit their shopping when the free shipping is removed.
9. Adding testimonials to your checkout page
Let those who has purchased from you cultivate credibility for you. This is especially useful if you are not a well known brand. Testimonials are a good way to decrease cart abandonment rate.
10. Giving price guarantees and refunds to customers
Around 36% of shoppers never complete their purchase because of the price and, therefore, by offering a price guarantee you give them confidence. That becomes the best deal and they will not see the need to compare your price with those of your competitors.
It is also important to have a clear and practical policy on refund as a way to deal with a high cart abandonment rate.
After Cart Abandonment
Even after doing everything to make sure no shopper abandons a cart, you will still have some cart abandonment rate. This is where the after cart abandonment best practices come in to help with some form of recovery.
The following are two of the most powerful cart abandonment best practices:
1. Use of ad retargeting
ADRoll is a retargeting platform and from their experience only 2% of shoppers purchase on their first visit. 98% are brought back by retargeting brings. Retargeting is a form of advertisement that is done by tracking people who visit your site and following them with an ad to other websites they are visiting.
For instance if someone comes to your site and shows interest on a hat but does not purchase it, you are able to follow that prospective customer with retargeting ads of hat while they are on the news or music website.
Brands Like Get Satisfaction have used retargeting to increase their ROI by up to 248% in three months. A fair-trade fashion retailer by the name PeopleTree was able through retargeting to get 30% visitors return to their website and, therefore, in overall reduce their cart abandonment rate.
2. Email recovery campaigns
Emails are another of cart abandonment best practices that you can use in reducing cart abandonment rate by getting shoppers to come back and complete their purchases. The more personalized the emails are, the more efficient in getting the prospect back. This can be achieved through the email address, name and other details they may have left behind.
It is considered one of the cart abandonment best practices for the emails to include pictures of the item they picked, testimonials from other shoppers, guarantee & refund policy information and a strong call to action to reduce cart abandonment rate.
Another of the cart abandonment best practices as pertains to the emails is their timing. The first email should go out within 24 hrs of the abandoning the cart. This should be followed with a second one within two days. A third one can follow within one week.
Blue Monkey used shopping cart recovery emails and they were able to reduce cart abandonment rate by about 13% in a few days of starting a campaign. Other brands like HE and VEDA have reported getting additional orders each month through email recovery campaigns.
For Shopify users, there are Solutions in the form of apps that integrates with most online stores easily and help in dealing with high cart abandonment rate.These include Jilt and Abandon Aid Other options are Cart Rescuer, Abandon Aid and Rejoiner.
Stop leaving money on the table
By implementing the cart abandonment best practices, you stand to not only retain more shoppers but also bring back those who slip away. They will work on your high cart abandonment rate and help you lock in the money on the table.