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What are the Top Reasons for Cart Abandonment? 5 Factors Killing your Conversions

  • 5 minutes

How much have abandoned carts cost you in the last 30 days? A lot, right? But do you know the reasons for cart abandonment? 

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. 

What is cart abandonment?

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.

How do you calculate your store's cart abandonment rate?

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%.

 

What is the average rate of cart abandonment?

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.

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What are the top 5 reasons for cart abandonment?

#1 Complicated checkout process

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. 

Source: try.pickystory.com

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. 

#2 Slow delivery

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.

#3 Extra costs

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

#4 Creating an account before 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.

#5 Not trusting the site with credit card information

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. 

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. 

Finally, explicitly state your refund and return policies. More than 50% of all online shoppers read these regulations before buying.

PickyStory displays discounted prices in cart to reduce cart abandonment

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. 

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. 

reasons for cart abandonment
Source: try.pickystory.com

Summing up the reasons for cart abandonment

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:

  • Use badges, seals, and customer testimonials to build trust.
  • Allow shoppers to check out as guests.
  • Display all costs before checkout clearly and reduce shipping fees.
  • Optimize delivery times to stand out and stay competitive.
  • Allow customers to contact you easily for the best customer experience.
  • Offer premium express shipping and delivery services.

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!

Read more: Upsell On Shopify: How To Upsell, Best Practices, Examples (+Pro Tips)

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Frequently Bought Together

Present bundles of products that are frequently purchased together, simplifying the decision-making process for your customers

What is Frequently Bought Together?

It is a recommendation scenario that suggests additional products to the shopper, which are often purchased by other customers in conjunction with the item they are currently viewing or considering purchasing.

Why are brands using it?

  • Boosted sales and revenue - increases average order value by suggesting complementary products, leading to higher sales
  • Simplified customer experience - saves time and effort for customers by offering relevant product recommendations, enhancing satisfaction and loyalty
  • Cross-selling opportunities: "Frequently Bought Together" creates opportunities for cross-selling, allowing brands to introduce shoppers to a wider range of products

How Zenbivy uses Frequently Bought Together

Zenbivy simplifies the shopping experience by displaying all the needed pieces of its sleeping systems on one page, under each product that is part of a sleeping system. This way, shoppers don't need to go through multiple pages and guess what goes with what. Zenbivy enjoys much larger orders, and shoppers can have a seamless experience.

www.zenbivy.com

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Build Your Own Bundle

Offer shoppers the ability to create their own bundle of products by selecting from a range of available options

What is Build Your Own Bundle?

Build Your Own Bundle scenario provides shoppers with the flexibility to select specific items or features that best meet their individual needs and preferences. The selection is based on a pre-curated set of products by the merchant.

Why are brands using it?

  • Increase AOV - encourage higher spending with customizable bundles, raising average order values and revenue
  • Personalize purchases - tailor products to customer preferences, potentially increasing Average Order Value (AOV) and overall revenue
  • Stand out competitively - offer a unique option, attracting customers looking for customized solutions

How Prodigy uses Build Your Own Bundle

Prodigy enables its shoppers to build their own bundle of golf discs, fully personalizing the shopping experience. Shoppers get an easy way to select their favorite discs while Prodigy consistently increases its AOV.

www.prodigystore.eu

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Bundle as Product

Combine multiple individual products into a bundle and sell them as a single unit

What is Bundle as Product?

Bundle as Product scenario involves bundling multiple individual products together and selling them as a single unit. This strategy offers shoppers a curated selection of items that work together or complement each other.

Why are brands using it?

  • Increase sales and revenue. Bundling leads to higher sales volumes and greater revenue due to the perceived cost-effectiveness.
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Gravity Fitness uses Bundle as Product

Gravity Fitness knows that it's not an easy task for shoppers to collect all the required pieces for a complete home gym. That's why they have created pre-made home gym bundles for an easy shopping experience. Now they have fewer SKU issues, a higher AOV, and happier customers.

www.gravity.fitness

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Complete the Bundle

Encourage shoppers to add the missing items to complete the bundle when they add items to cart

What is Complete the Bundle?

Complete the Bundle popup is a deal that appears when a shopper has added some items to their shopping cart but has not yet added all the recommended or related products that typically go together.

Why are brands using it?

  • Increase Average Order Value (AOV) - encourage shoppers to add complementary products, leading to higher total purchases
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Petliking.com uses Complete the Bundle

Petliking.com never misses an opportunity to offer more products to its shoppers after they add an item to cart. By offering to complete the bundle, Petliking.com helps shoppers to discover additional related items that complement each other while increasing its order size.

www.petliking.com

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Bundle as Product

Combine multiple individual products into a bundle and sell them as a single unit

What is Bundle as Product?

Bundle as Product scenario involves bundling multiple individual products together and selling them as a single unit. This strategy offers shoppers a curated selection of items that work together or complement each other.

Why are brands using it?

  • Increase sales and revenue. Bundling leads to higher sales volumes and greater revenue due to the perceived cost-effectiveness.
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Doodle Couture uses Bundle as Product

Doodle Couture makes it so easy for shoppers to equip their best friend with the required outfit. Instead of moving back and forth between pages, Doodle Couture offer a complete bundle for pets on one page with a single click. This boosts AOV while making the shopper happy.

www.doodlecouture.com

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Complete the Bundle

Encourage shoppers to add the missing items to complete the bundle when they add items to cart

What is Complete the Bundle?

Complete the Bundle popup is a deal that appears when a shopper has added some items to their shopping cart but has not yet added all the recommended or related products that typically go together.

Why are brands using it?

  • Increase Average Order Value (AOV) - encourage shoppers to add complementary products, leading to higher total purchases
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How A&D Performance uses Complete the Bundle

A&D Performance always seizes intent-based opportunities to offer additional supplements when shoppers add items to their cart. By displaying a 'Complete the Bundle' popup, A&D Performance increases their Average Order Value (AOV) while helping their customers discover more products.

www.andperformance.com

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Bundle as Product

Combine multiple individual products into a bundle and sell them as a single unit

What is Bundle as Product?

Bundle as Product scenario involves bundling multiple individual products together and selling them as a single unit. This strategy offers shoppers a curated selection of items that work together or complement each other.

Why are brands using it?

  • Increase sales and revenue. Bundling leads to higher sales volumes and greater revenue due to the perceived cost-effectiveness.
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Koala Babycare uses Bundle as Product

Koala Babycare simplifies its shoppers lives by offering complete cream & oil sets. Shoppers can easily pick their favorite bundles and save while Koala Babycare increases its AOV and number of orders.

www.koalababycare.com

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Spend X Get Y

Encourage shoppers to spend a certain amount of money (X) in order to receive a specific benefit or reward (Y)

What is Spend X Get Y?

"Spend X, Get Y" promotions are designed to motivate shoppers to spend more money with the promise of receiving something valuable in return. It's a win-win situation where customers get a benefit, and the store increases its sales.

Why are brands using it?

  • Promotes larger purchases - motivates shoppers to spend more to qualify for the promotion, potentially leading to bigger transactions
  • Increases Average Order Value (AOV) - encourages higher spending, leading to a higher average transaction value
  • Enhances customer loyalty - provides added value, improving customer satisfaction and fostering loyalty

How Jose Pizarro uses Spend X Get Y

Jose Pizarro takes advantage of PickyCart and 'Spend X Get Y' to reward shoppers with free shipping when they spend £75 in-store. This is a win-win offer for both sides - while Jose Pizarro increases the AOV, shoppers receive a sweet reward.

www.josepizarro.com

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Complete the Bundle

Encourage shoppers to add the missing items to complete the bundle when they add items to cart

What is Complete the Bundle?

Complete the Bundle popup is a deal that appears when a shopper has added some items to their shopping cart but has not yet added all the recommended or related products that typically go together.

Why are brands using it?

  • Increase Average Order Value (AOV) - encourage shoppers to add complementary products, leading to higher total purchases
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Agrestis uses Complete the Bundle

Agrestis makes sure to consistently display a variety of spirits to their shoppers at the right moment. As shoppers add spirits to the cart, Agrestis extends an offer to include more related spirits, resulting in an improved shopping experience and a higher Average Order Value (AOV).

www.stagrestis.com

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Build Your Own Bundle

Offer shoppers the ability to create their own bundle of products by selecting from a range of available options

What is Build Your Own Bundle?

Build Your Own Bundle scenario provides shoppers with the flexibility to select specific items or features that best meet their individual needs and preferences. The selection is based on a pre-curated set of products by the merchant.

Why are brands using it?

  • Increase AOV - encourage higher spending with customizable bundles, raising average order values and revenue
  • Personalize purchases - tailor products to customer preferences, potentially increasing Average Order Value (AOV) and overall revenue
  • Stand out competitively - offer a unique option, attracting customers looking for customized solutions

How Wisdom Foods uses Build Your Own Bundle

Wisdom Foods wanted to upgrade its shopping experience by making it easy for shoppers to pick their desired syrups. Now it allows shoppers to build their own bundles of syrups from a single page and checking out. This increases Wisdom Foods' order sizes while providing a personalized experience to their shoppers.

www.wisdomfoods.com.au

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Bundle as Product

Combine multiple individual products into a bundle and sell them as a single unit

What is Bundle as Product?

Bundle as Product scenario involves bundling multiple individual products together and selling them as a single unit. This strategy offers shoppers a curated selection of items that work together or complement each other.

Why are brands using it?

  • Increase sales and revenue. Bundling leads to higher sales volumes and greater revenue due to the perceived cost-effectiveness.
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Dineamic uses Bundle as Product

Dineamic takes advantage of bundles to package their pre-made meals by dietary requirements, so every shopper can quickly and easily find the desired category of meals and add them all with a single click. This simplifies the shopping experience and benefits both sides, as Dineamic boosts its Average Order Value (AOV).

www.dineamic.com.au

Create Bundle as product

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Bundle as Product

Combine multiple individual products into a bundle and sell them as a single unit

What is Bundle as Product?

Bundle as Product scenario involves bundling multiple individual products together and selling them as a single unit. This strategy offers shoppers a curated selection of items that work together or complement each other.

Why are brands using it?

  • Increase sales and revenue. Bundling leads to higher sales volumes and greater revenue due to the perceived cost-effectiveness.
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Line Furniture uses Bundle as Product

Line furniture simplifies its shoppers lives by offering complete furniture sets in different styles. Now shoppers can easily find their favorite living room and save while Line Furniture increases its AOV and number of orders.

www.linefurniture.se

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Complete the Bundle

Encourage shoppers to add the missing items to complete the bundle when they add items to cart

What is Complete the Bundle?

Complete the Bundle popup is a deal that appears when a shopper has added some items to their shopping cart but has not yet added all the recommended or related products that typically go together.

Why are brands using it?

  • Increase Average Order Value (AOV) - encourage shoppers to add complementary products, leading to higher total purchases
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Sobel Home uses Complete the Bundle

Sobel Home never misses an opportunity to offer more products to its shoppers after they add an item to cart. By offering to complete the bundle, Sobel Home helps shoppers to discover additional related items that complement each other while increasing its order size.

www.sobelathome.com

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Frequently Bought Together

Present bundles of products that are frequently purchased together, simplifying the decision-making process for your customers

What is Frequently Bought Together?

It is a recommendation scenario that suggests additional products to the shopper, which are often purchased by other customers in conjunction with the item they are currently viewing or considering purchasing.

Why are brands using it?

  • Boosted sales and revenue - increases average order value by suggesting complementary products, leading to higher sales
  • Simplified customer experience - saves time and effort for customers by offering relevant product recommendations, enhancing satisfaction and loyalty
  • Cross-selling opportunities: "Frequently Bought Together" creates opportunities for cross-selling, allowing brands to introduce shoppers to a wider range of products

How By Benson uses Frequently Bought Together

By Benson never misses an opportunity to offer more options to its customers. While shoppers visit their product pages, they constantly offer to extend or upgrade the targeted product, resulting in better service and larger orders.

www.bybenson.com

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Build Your Own Bundle

Offer shoppers the ability to create their own bundle of products by selecting from a range of available options

What is Build Your Own Bundle?

Build Your Own Bundle scenario provides shoppers with the flexibility to select specific items or features that best meet their individual needs and preferences. The selection is based on a pre-curated set of products by the merchant.

Why are brands using it?

  • Increase AOV - encourage higher spending with customizable bundles, raising average order values and revenue
  • Personalize purchases - tailor products to customer preferences, potentially increasing Average Order Value (AOV) and overall revenue
  • Stand out competitively - offer a unique option, attracting customers looking for customized solutions

How By Benson uses Build Your Own Bundle

As a professional destination for home gardeners, By Benson understands that it might be tricky to select all the necessary tools to make your garden shine. That's why By Benson helps its shoppers choose bundles of tools with a single click, while boosting their Average Order Value (AOV).

www.bybenson.com

Create Build Your Own Bundle

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Build Your Own Bundle

Offer shoppers the ability to create their own bundle of products by selecting from a range of available options

What is Build Your Own Bundle?

Build Your Own Bundle scenario provides shoppers with the flexibility to select specific items or features that best meet their individual needs and preferences. The selection is based on a pre-curated set of products by the merchant.

Why are brands using it?

  • Increase AOV - encourage higher spending with customizable bundles, raising average order values and revenue
  • Personalize purchases - tailor products to customer preferences, potentially increasing Average Order Value (AOV) and overall revenue
  • Stand out competitively - offer a unique option, attracting customers looking for customized solutions

How Good Store uses Build Your Own Bundle

Good Store encourages its shoppers to build their own custom bundles of soaps. They provide a variety of soaps to choose from and leave the selection itself to the shopper. This is fun, rewarding, and makes both sides happy.

www.good.store

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Bundle as Product

Combine multiple individual products into a bundle and sell them as a single unit

What is Bundle as Product?

Bundle as Product scenario involves bundling multiple individual products together and selling them as a single unit. This strategy offers shoppers a curated selection of items that work together or complement each other.

Why are brands using it?

  • Increase sales and revenue. Bundling leads to higher sales volumes and greater revenue due to the perceived cost-effectiveness.
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How Westman Atelier uses Bundle as Product

Westman Atelier understands that the attention span of the average shopper is quite short. Furthermore, with numerous options available, it's often easier to opt for a suggested bundle that's already curated for you.

www.westman-atelier.com

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Frequently Bought Together

Present bundles of products that are frequently purchased together, simplifying the decision-making process for your customers

What is Frequently Bought Together?

It is a recommendation scenario that suggests additional products to the shopper, which are often purchased by other customers in conjunction with the item they are currently viewing or considering purchasing.

Why are brands using it?

  • Boosted sales and revenue - increases average order value by suggesting complementary products, leading to higher sales
  • Simplified customer experience - saves time and effort for customers by offering relevant product recommendations, enhancing satisfaction and loyalty
  • Cross-selling opportunities: "Frequently Bought Together" creates opportunities for cross-selling, allowing brands to introduce shoppers to a wider range of products

How Aim’n uses Frequently Bought Together

Aim'n never misses a shopper when it comes to its product pages. It utilizes the 'Frequently Bought Together' feature to suggest additional sizes to product viewers, ensuring that no shopper is left without a solution while keeping its main sizes as the default option.

www.aimn.se

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Bundle as Product

Combine multiple individual products into a bundle and sell them as a single unit

What is Bundle as Product?

Bundle as Product scenario involves bundling multiple individual products together and selling them as a single unit. This strategy offers shoppers a curated selection of items that work together or complement each other.

Why are brands using it?

  • Increase sales and revenue. Bundling leads to higher sales volumes and greater revenue due to the perceived cost-effectiveness.
  • Highlight the value and convenience of purchasing a set of items together, enticing them with an irresistible offer
  • Enhance value perception. Bundles create the perception of added value, making them more appealing to customers.

How BLANQI uses Bundle as Product

BLANQI make it easy for their shoppers to find complete maternity sets. While shoppers receive a fast, single-click shopping experience, BLANQI enjoys higher order amounts without investing any additional resources.

www.blanqi.com

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Build Your Own Bundle

Offer shoppers the ability to create their own bundle of products by selecting from a range of available options

What is Build Your Own Bundle?

Build Your Own Bundle scenario provides shoppers with the flexibility to select specific items or features that best meet their individual needs and preferences. The selection is based on a pre-curated set of products by the merchant.

Why are brands using it?

  • Increase AOV - encourage higher spending with customizable bundles, raising average order values and revenue
  • Personalize purchases - tailor products to customer preferences, potentially increasing Average Order Value (AOV) and overall revenue
  • Stand out competitively - offer a unique option, attracting customers looking for customized solutions

How Carly Jean uses Build Your Own Bundle

Carly Jean offers its shoppers the opportunity to build their own custom looks by selecting the individual items that comprise their desired outfit. 'Build Your Own Bundle' enables Carly Jean to easily provide a personalized experience that shoppers love and want to return to again and again.

www.carlyjeanlosangeles.com

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Spend X Get Y

Encourage shoppers to spend a certain amount of money (X) in order to receive a specific benefit or reward (Y)

What is Spend X Get Y?

"Spend X, Get Y" promotions are designed to motivate shoppers to spend more money with the promise of receiving something valuable in return. It's a win-win situation where customers get a benefit, and the store increases its sales.

Why are brands using it?

  • Promotes larger purchases - motivates shoppers to spend more to qualify for the promotion, potentially leading to bigger transactions
  • Increases Average Order Value (AOV) - encourages higher spending, leading to a higher average transaction value
  • Enhances customer loyalty - provides added value, improving customer satisfaction and fostering loyalty

How Proclamation Jewelry uses Spend X Get Y

Proclamation Jewelry encourages its shoppers to spend at least $500 on jewelry in-store to receive free shipping. This is a win-win for both the shoppers, who get free shipping (which can be expensive at times), and the brand, which maintains a higher average order value.

www.proclamationjewelry.com

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