The 'Like' button can be considered one of the biggest tools of cyberbullying, carrier of fake news and, unfortunately, also the cause of low self-esteem among young users.
In the past and present, a great number of technologies have been created in the hope that they will make the world, virtual or real, a better place to live in. E-commerce is one of them.
If we tell our grandparents new zealand phone number library that it is possible to have groceries delivered to their home without having to leave the house , they will scoff at the idea. But, for millennials and Gen Z, online shopping, whether it is for groceries or fashion clothing, is a natural habit. It is so convenient and easy that it has become a natural part of our lifestyle.
Now here comes the sad news. Just like the 'Like' button that turns a blessing into a nightmare, for e-commerce the convenience it provides has become a nightmare.
It's very easy to add a product to your shopping cart and decide not to buy it. In e-commerce parlance, this is known as shopping cart abandonment .
Shopping cart abandonment occurs when a potential customer initiates a checkout process for an online order, but abandons the process before completing the purchase on the checkout page.
But why is cart abandonment rate so important? 88.05% of online orders placed in March 2020 were abandoned. And this isn’t a case limited to March alone. It represents the average cart abandonment rate across all industries, where the lowest is in the 68% range.
Source: Statista
Source: Statista
For retailers already under pressure from razor-thin margins and operational challenges, cart abandonment is a challenge that needs immediate resolution. And you don’t want your e-commerce marketing efforts to be in vain.
The solution starts with understanding the various factors that lead to cart abandonment and how to address them. Let’s get into that discussion.
Reasons for shopping cart abandonment
Across the globe, from Asia to the Americas, customer preferences and spending patterns differ widely. However, the reasons for shopping cart abandonment in online shopping follow a consistent pattern.
The most common ones and how to address them are discussed below:
1. Window shopping
Online window shopping offers the same hedonic shopping experience, similar to window shopping in real life at a mall or retail store. In fact, it is more convenient and cheaper.
Moreover, online stores go the extra mile to showcase their products in 360-degree angles, video thumbnails , and even enrich them with AR-based quizzes. This makes it easy for the casual browser to check out a product, add it to the cart, and close the browser without completing the purchase.
What's the problem?
Most customers window shop and then abruptly abandon their shopping cart. They look but don't buy. The item stays in the cart for a long time until they remember to complete the purchase.
Is window shopping bad for business? Not at all. Studies have found that 77% of casual browsers or window shoppers will make impulse purchases while browsing on mobile. However, it takes a nudge to turn these abandoned carts into completed orders.
Strategically timed exit-intent pop-ups can help with that. For example, a user who wants to close the window could move their mouse arrow to the “Close” button. Or a user who has spent a lot of time on the page but hasn’t interacted with it in any way could be shown a pop-up to trigger an action.
These pop-ups could contain discount messages, package deals, loyalty rewards, etc. that can turn the window shopper into an impulse buyer.
The purpose of an exit-intent popup is to grab the user’s attention at an opportune moment when they are planning to leave the website. There are several options on the market like P optin exit intent popups that make it easy for retailers to set up popups.
2. Hidden costs
After convenience, the biggest draw of online shopping is discounts and deals. Imagine the cost savings a customer had anticipated evaporating into thin air at the checkout page?
Well, this happens when hidden costs or rather unannounced costs are displayed at the checkout stage. These costs could be shipping, packaging or scheduled delivery. Some retailers even label it as a ‘ processing fee ’ for their services.
Studies have shown that 28% of customers will abandon their shopping carts due to unexpected shipping costs.
Source: Neil Patel
Source: Neil Patel
What's the problem?
No matter what, these hidden costs give shoppers an unpleasant surprise. Increasing the cost of the order at the last minute with shipping costs, processing fees, etc. can irritate the customer and force them to abandon the shopping cart.
If it was an impulse purchase, these costs are likely to actually prevent the customer from completing the purchase.
How to solve it?
This is not a serious challenge and can be easily addressed by the retailer with a little proactive planning on their part. For example, if there are shipping costs or other costs that will be added to the order in addition to the displayed price, be transparent about it.
Display it on the product page itself. It will help the customer make an informed decision. It will also save them the trouble of continuing to the checkout page and then eventually abandoning it.
For example, on the product page itself, customers can be given the option to choose the shipping method and the associated costs. This makes it obvious that shipping is chargeable, thus eliminating a surprise at a later stage.
Source: Neil Patel
Source: Neil Patel
3. Complicated payment
Getting a customer to the checkout page is half the battle for any online store. Unfortunately, more often than not, that battle is lost without further progress at the checkout stage? Why?
What's the problem?
Complicated checkout processes give the customer enough time to reconsider their purchasing decision. For an impulsive buyer, this second thought is enough to abandon the shopping cart. Lengthy checkout processes that ask for too much personal information and require the customer to take further actions to complete the order. This could also cause them to postpone the purchase or abandon it altogether.
How to solve it?
The checkout process should be kept as simple as possible. It should be straightforward, not asking for private information or forcing the customer to repeat what they have already provided. In fact, to reduce shopping cart abandonment at the checkout stage, it is recommended to take inspiration from Amazon’s one-click ordering process. The process (which is based on a patented technology) automatically fills in all user information, payment information, and also order details, allowing the customer to complete the order with one click or with minimal gestures.
Image courtesy of Amazon
Image courtesy of Amazon
4. Security issues
Despite the rise in e-commerce transactions, a large portion of customers are still wary of their cyber security . Customer segments belonging to baby boomers and millennials still want an extra level of assurance that their personal and financial information will not be leaked or accessed by unauthorized personnel. If they do not get the security assurance, they will abandon the shopping cart abruptly.
What's the problem?
Cybersecurity threats are on the rise. Customers are wary of sharing credit card details or personal data online. The risk is higher when customers have to use digital wallets, in-app purchases and similar new-age payment modes, whose security features are not widely known.
How to solve it?
As with the advent of cybersecurity threats, there has been a rise in community-driven and social proof display rating models. These take the form of security seals, assurances, etc. that the customer can recognize and feel comfortable with instant verification.
SSL certificates that give the website an HTTPS suffix and also a padlock symbol are a classic example of such security symbols. They help reduce instances of cart abandonment caused by security concerns.
