The Truth About Shopping Cart Abandonment
Here’s a statistic that should make even the savviest of CMOs shudder: 70% of all online shopping carts are abandoned, according to a study by the Baymard Institute. The study averaged 48 shopping cart abandonment studies that showed abandonment rates ranging from 56% to 81%.
That’s right—seven out of every ten shoppers decide against completing their purchase once they’ve added items to their cart, leaving retailers with empty pockets and a lot of unanswered questions. What could be causing such a high rate of abandonment? We take a look at some reasons why shoppers abandon their carts without converting.
High shipping fees are a huge turnoff
It doesn’t take an economist to understand that, for many people, cost is king when it comes to making purchasing decisions. When you add exorbitant shipping fees on top of the cost of the item itself, you can easily lose potential customers who just aren’t willing to shell out extra cash. Be sure to be up-front about your shipping fees so customers know what they’re getting themselves into before they get too invested in their shopping experience.
One way to get around shipping fee woes is to create tiered shipping prices that vary depending on how much the customer spends. A study by Alix Partners & Rejoiner showed that 36% of shoppers will abandon their carts if shipping fees are too high. Instead of thinking of shipping as a fee that you need to pass along to your customers, think of shipping as a service you provide. A higher level of service makes customers feel appreciated, and will encourage them to come back to purchase again and again.
No guest checkouts make customers feel pressured
Long checkout forms can be intimidating for some shoppers, leading them to give up on their purchase altogether. To combat this issue, offering guest checkouts can be beneficial; allowing customers to check out without creating an account eliminates any hassle and helps them complete the process faster.
Offering options like ShopPay, Apple Pay or PayPal simplifies the checkout process by providing alternative methods for payment that don't require as much information from users as traditional credit card payments do. You can also add "Buy From Here" or 1-screen checkouts with Shopify checkout customizations. Giving customers as many checkout options as possible is the best way to drive conversions and cart completions.
Lack of trustworthiness & transparency
In an age where online scams are rampant and digital threats lurk around every corner, it makes sense that people would want assurance that your site is safe and secure before handing over any financial information. Transparency goes a long way towards customer confidence, so one way to boost customer trust is by sharing more information about your products, your brand, or your mission. Creating "about us" content is a great way to help customers learn more about your brand, which builds trust.
On the technical side of things, make sure your site is safe and secure for online shopping. Having visible trust badges or SSL Certificates reassures customers that their data isn't being left vulnerable to malicious hackers, giving them more confidence in making purchases from your store. Additionally, having clear policies outlined on your site regarding privacy and security also helps build trust with your customers—and turns leads into conversions.
Cart abandonment isn't just a UX issue, it's a business issue
Shopping cart abandonment is one problem that plagues almost all eCommerce brands—but it doesn't have to! Understanding why shoppers may choose not to complete their purchase gives you the opportunity to adjust accordingly and make modifications that will help increase conversion rates while still protecting customer data and keeping costs low. With these strategies in mind, you'll soon find yourself ahead of the curve when it comes to increasing conversions from online shopping carts.