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How much have abandoned carts cost you in the last 30 days? A lot, right? But do you know the reasons for cart abandonment?Â
Online retailers lose about $18 billion annually due to cart abandonment. And with lots of products expected to be abandoned in digital carts in 2023, cart abandonment has become a pressing issue that needs an immediate solution.
In this article, we will discuss the real reasons why most customers abandon their shopping carts. We will also highlight how PickyStory can help your store reduce cart abandonment rates.Â
Cart abandonment occurs when a potential consumer adds a product to their shopping cart but leaves the site without checking out. Any product added to a cart without completing the checkout process is deemed “abandoned.”
Online retailers must monitor their cart abandonment rate closely as well as the reasons for cart abandonment. It’s an important metric for identifying pain points in your customer journey and fixing customer issues or complaints.
Calculating your store’s cart abandonment rate is the first step toward preventing abandonment and increasing conversions. But first, you need to know how many customers abandon carts on your site before figuring out why it happens. Then you can take strong action to address any issue that causes cart abandonment.
To calculate your store’s cart abandonment rate, follow these steps:
1. Divide the total number of completed purchases by the number of shopping carts created.
For example, if the total number of completed purchases over 30 days is 300 and the number of shopping carts created is 600, your calculation would be:
300 ÷ 600 = 0.5
2. Turn the answer from the first step into a percentage by subtracting from 1 and multiplying by 100.
1 – 0.5 = 0.5
0.5 x 100 = 50%
So your cart abandonment rate is 50%.
According to a recent study, the average cart abandonment rate is around 70%. But irrespective of this figure, cart abandonment rates can vary between industries. Let’s take a look at some industry-specific cart abandonment rates, according to Statista:
Fashion: 88.57%
Consumer electronics: 70.65%
Retail: 76.34%
Hotel: 82.71%
Travel: 79.95%
The differences across the above industries aren’t significant since the rates are high in each industry. But if you own a fashion store, addressing issues and reasons for cart abandonment will certainly increase sales.
Retailers have few chances for redemption with shoppers. According to a report, shoppers are impatient with buying issues, with about 17% of shoppers abandoning their cart if they find a checkout process complicated or time-consuming.Â
That’s why you need to make your customer journey (from product discovery to checkout) frictionless. A great customer experience should be quick and seamless. If not, your store will lose sales. So ensure that the checkout process is straightforward, with auto-fill and sign-in options for returning customers.Â
Slow delivery is one of the common shopping cart abandonment reasons. According to data, 22% of shoppers abandon their shopping carts due to delayed delivery. While some products take longer to ship, most online shoppers are used to receiving their orders quickly.
If your store doesn’t meet these expectations, they’ll likely abandon their cart and shop elsewhere.
Therefore, if you want to lower your store’s shopping cart abandonment rate, make sure you stand out in terms of shipping. You can meet shoppers’ expectations by offering flexible delivery options at a premium price.
Extra costs are one of the most common reasons for cart abandonment. Imagine adding a product that costs $50 to your cart only to see the cost skyrocket to $70 when you reach the checkout page. Not cool, right?
These extra and hidden costs can be in the form of shipping, tax, and other fees. Granted, it’s a challenging situation for retailers. But the truth is that shoppers don’t want to pay these “extra charges,” especially if they are hidden.
Studies show that about 48% of buyers will abandon their cart if they don’t see the total cost. So, wherever possible, display accurate, final prices on the product page, so that customers know what to expect when they get to the checkout
About 24% of shoppers will abandon a cart if they are required to create an account before checkout. It’s a long and complicated process. To solve this problem, you can offer shoppers a guest checkout. Guest checkout allows shoppers to buy products from your store without creating an account or saving any information on your site.
We recommend allowing shoppers to use the guest checkout feature or sign up themselves. Also, you can offer incentives or discounts to sign up if you must collect your customer data. Such incentives can encourage shoppers to create an account rather than abandon the cart.
An online store isn’t like a physical store. Customers can’t hold the product, try them on, or look at you while they pay. And with the rise of online stores has come an increase in fraudulent activities. Hence, if your potential customers don’t trust you, they’ll abandon their carts.
About 18% of shoppers will abandon their cart if they don’t trust the site with their credit card information. To solve this problem, leverage social proof.Â
Showing social proof on your store will not only increase sales. It will also develop trust. So make sure you use photo reviews – photos taken by real shoppers.
Also, customers are aware that data theft exists. So you need to convince shoppers to buy from you by showing how you protect their data and identities.
Applying for and displaying recognized credentials is another fantastic method to inspire trust. This includes using a good antivirus application, SSL certificates, and getting verified by credit and debit card companies.Â
Finally, explicitly state your refund and return policies. More than 50% of all online shoppers read these regulations before buying.
When customers see a discount on a product page, but don’t see it in the cart, they can become suspicious and abandon their cart.Â
With PickyStory, deal discounts are displayed on the product page, in the cart, and at the checkout, so that your customers know exactly what to expect as soon as they add a product to their cart. This helps reduce friction, increase trust, and improves your chances of making a sale.Â
The average cart abandonment rate is pretty high. And the fact that 7 out of 10 shoppers abandon their carts shows how hard e-commerce merchants must work.
However, it is a repairable issue. We have revealed some reasons for cart abandonment and areas brands should focus on. As a quick overview, here are a few effective shopping cart abandonment solutions:
Fixing these burning issues will help you minimize cart abandonment rates. Not only that. You’ll also be improving customer experience, increasing conversions, and strengthening brand loyalty in the long run.
If you’re looking for more e-commerce tips and recommendations, check out the PickyStory blog.
Good Luck!
PickyStory helps e-commerce merchants to collect hidden revenue by selling products together. PickyStory offers a variety of deals like Bundle Products, Combo Products, Bundle Builder, Kits, Looks, and Coupons.
© 2023 PickyStory
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