Owning your own business can be extremely rewarding, both personally and financially. That said, it doesn’t come without its share of difficulties and headaches. When it comes to ecommerce business owners, a major source of frustration is related to shopping cart abandonment. Few things cause more angst than when a shopper places an order into their cart and for some reason, decides to leave without completing the transaction. This phenomenon is not limited to just a few businesses. As of 2015, 68.63% of ecommerce businesses reported problems with shopping cart abandonment. With such a large percentage of businesses facing this issue, there are ways to combat it. We already have an article on our blog that provides you with “3 Easy Steps to Fix Shopping Cart Abandonment.” We’re going to add on to those ideas with a few more with ways to improve your checkout experience and prevent cart abandonment.
Tip #1: Be transparent about everything.
Studies have shown that 58% of people who have abandoned their shopping cart did so because of the total cost of their purchase was higher than expected. In order to combat this issue, it’s important for companies to be transparent (being honest and forthcoming with information about your business). Customers are more business savvy than ever before, and will more than likely find out if your business is trying to hide costs from them. You can eliminate hidden costs by adding a sales estimator or a sales tax calculator so that customers are not surprised by the total when they are ready to check out. If you want to know more about how to add your own sales tax calculator this article can help give you some further insight.
Tip #2: Create a wish list option and reminders for saved shopping carts.
While hidden costs are the number one reason why an individual doesn’t complete a transaction, a close third is that 55% of individuals (from the same study above) also stated that they have abandoned a shopping cart because they were not ready to buy at that time, but wanted to save the items they picked out for a later time. This can be confusing for a business owner because you may have no clue when to count an abandoned cart as a loss or as a potential sale later on. You can deal with this problem by creating a wish list or an option for a customer to save their shopping cart for a later time. Once that is created, and a customer doesn’t come back after a long time, sending a reminder email can get them to come back and complete their transaction. Studies have shown that 46.1% of shopping cart reminder emails are opened and 13.1% of those opened emails are clicked resulting in over one-third of those clicks resulting in a sale.
Tip #3: Provide a multitude of different payment options for a customer.
A reported 25% of customers have stated that the reason they abandoned a shopping cart was because the website they were shopping on did not have their preferred payment option. You can easily fix this by accepting different types of credit cards and accepting other online methods as PayPal and Google Wallet to reach a larger number of potential customers.
Tip #4: Offer free shipping.
Since customers have already stated that hidden costs are their number one reason for leaving a shopping cart, most of the hidden costs that the people who abandon are speaking of is the unexpectedly high shipping costs that can accompany a purchase. A way to stop customers from running for the hills when faced with shipping costs is to offer free shipping. Studies have shown that 81% of customers will buy a product from a business that offers free shipping. We have already talked about ways to get free shipping, in our articles: “How to Guarantee Hassle-Free and Easy Shipping” and “Get on Board with Free Shipping, Before it’s Too Late” to help guide you to being profitable while offering free shipping options.
Missing out on sales due to shopping cart abandonment is a huge headache for eCommerce business owners. Since the number of shopping cart abandonment has increased in the last few years, it is important for your business to know how to combat this issue head-on by utilizing our tips. Not only would this improve your overall sales but customers would enjoy the improved experience when checking out!
Take a look at the infographic below to help you implement your strategy.