In this 21st century, online shopping is the most preferred medium for the customers to buy and sell products easily. Evidently, with increasing majority of people accessing the internet, the online buying has become very common among the people.
The shoppers login into the ecommerce site, browse through to find their required product, pick the product and add it to the cart, provide address, select mode of payment, furnish card or other details to pay, and finally confirm the invoice to complete the purchase formalities. In the above said process, people may set back and abandon the site at anytime.
Shopping cart abandonment rate is nearly 65.23% which covers up to $3 trillion lost revenue. Among them, 74.1% is consumer electronics, 71.9% is style & fashion, 75.7% is food & drink, 65.7% is health & beauty, 69.8% is home furnishing, and 69.1% is sporting goods.
Why Shoppers abandon site?
There may be plenty of reasons which may force the shop keeper to abandon the site. Around 56% of the shoppers encounter unexpected cost. For example, they select a product to buy and then later on additional charges are included during the payment process which make the shoppers to abandon the site.
On the other side, 32% find the product to be overpriced. Mostly, 37% of the shoppers were just a browser who visited the site simply to know details. About 36% of the people find a better price elsewhere in the market. 26% of the people simply don’t want to buy the product currently.
Interestingly, 25% of the people feel the site to be more complicated to browse and find the desired product. There are notable reasons where 24% of the shoppers experience website crash. The process of payment security made 16% to deviate from the site. Also 15% encounter website time out while they decide to buy the product. Nearly 13% of the shoppers left the shopping cart because of foreign currency payment. Only 11% of shoppers present their problem as payment decline.
How to reduce cart abandon rate?
1. Display rate at beginning: The total cost of the product with all the shipping cost etc., can be displayed well before the shopper clicks the buy button. This removes the ambiguity of the buyer to choose the product for purchase.
2. Compelling offers: In order to attract the shoppers, the site can provide plenty of offers and discounts which may attract the people. This can reduce the rate at which the shoppers abandon the site when compared to other similar site. Discount offer provided for next time purchase can convert the repeat customer.
3. Include reviews: By presenting the reviews and market analysis of the product on the site, a major percentage of the customers can be retained on the site. People believe on reviews and get tempted to make a purchase.
4. Assure security: People get the notion that their private secured information like credit card details may be unsafe on the internet. It is the primary duty of the shopping cart to ensure complete security for the site by like adapting to PCI secure. It should be communicated to the shoppers that the information collected from them is safe and will be used for internal purpose only and will not be shared with others.
A large amount of income can be retrieved by focusing on abandon rate of the shopping cart. Performance of the site can be improved by retaining more shoppers on the site as well as financial status can be improved. Some of the methods to follow for reducing abandonment rate of shopping carts are discussed below.
1. Email Marketing: Mails can be sent to the customers intimating their incomplete process of buying on the site. Apart from reminder mails, the customer can be motivated to buy by providing discounts and offers. Study reveals that nearly 3% to 11% recovery rate is possible for each month. Nearly 48.1% of basket abandonment emails were opened and 33.3% of these clickers went to purchase the product for Q4 2013.
2. Search engine re-marketing: Google adwords can be helpful for motivating the shopper to buy. For example, when the user abandons the site, an ad can be placed elsewhere (a cookie) where the shopper visits by focusing and directing him to the shopping cart to make a purchase.
The biggest challenge faced by the shopping cart is abandonment during the buying formalities. This can be reduced by focusing on shipping cost, discounts, offers, better site security etc. Converting the abandonment rate into sales can fetch huge income for the retailers.