What is Cart Abandonment?
Picture three shoppers walking into a store. All three pull items from the shelves, fill their baskets, and walk toward the checkout counter. The first shopper pays and leaves with her purchases. The other two shoppers, however, push their full baskets into a corner and leave.
This behavior might raise some eyebrows at your local Target, but the online equivalent happens in eCommerce stores countless times every day. Users put products in a digital cart and then, for whatever reason, don’t complete their purchase. And every cart that online shoppers fill up and abandon represents a potential sale that could’ve happened, or should’ve happened, but didn’t. Shopping cart abandonment is the act of placing an order in a shopping cart, but then not completing any checkout process. An Ecommerce survey conducted by Comscore found that 67% of online shoppers abandoned their carts within 24 hours. The abandonment rate can be attributed to various factors like low value products (46%), time constraint (39%) and lacklustre user experience (35%).
Shopping cart abandonment is an issue that affects ecommerce retailers, store owners and dropshippers of all sizes. However, it can be reduced by implementing some smart strategies to get shoppers back in the cart and onto the site. The following are five basic ways to combat shopping cart abandonment:
- Increase inventory velocity 2. Improve cash flow 3. Lower your cost per conversion
Shopping cart abandonment is when people leave products in your shopping cart, without purchasing it. This can be caused by the shopper not wanting to buy something they don’t realize that they have no intention of buying but ended up doing so anyway. It happens probably more frequently at online stores than offline stores because customers are more likely to take things out of their cart if there is no check-out button available on the computer screen itself rather than physically removing items from a shelf or disposal
It is caused by various reasons such as unfamiliarity with ecommerce, unsatisfying checkout experience, product quality issues or simply being lazy from not wanting to spend time on their shopping cart abandonment can be costly for E-Commerce stores as it results in loss of revenue and may cause brand damage if consumers don’t return.
Research done shows that more than 40% of online sales are made via mobile devices which is why proper checking out functions become vital for shoppers even on tablet computers .If shopping baggages goes down customers quickly abandon shopping carts and wait for payments to be confirmed in order to proceed with their purchases.
Why is Capturing Abandoned Cart Revenue Important?
A common metaphor for the steps that buyers take before making a purchase is the sales funnel. The checkout stage in general, and eCommerce carts specifically, represent the bottom of the funnel, where prospects actually become customers. If you’re marketing to people who are ready to buy (and you should be!), minimizing cart abandonment is essential for making your whole funnel effective. Once you’re sure that the bottom of your funnel is optimized, you can start improving the upper stages of the funnel with confidence that any ‘leakage’ has been minimized. Conversely, if you can’t convert buyers effectively, it won’t matter if you generate more traffic or brand recognition — you won’t produce results.
The term “cart abandonment” implies that the would-be buyer has already exited your eCommerce page. But there are lots of things you can do within your checkout process to keep prospects engaged before they disappear in the first place.
These “pre-abandonment” tips will improve your user experience and minimize
the common reasons users don’t convert.
11 Ways to Reduce Cart Abandonment During Checkout:
- Free Shipping
- Cost Transparency
- Offer Guest Checkout
- Add a Progress Bar
- Make Returns Easy
- Display Security Credentials
- Social Proof at Checkout
- Accept a Variety of Payment Methods
- Live Chat at Checkout
- Optimize Page Load Times
- Exit Popups
Let’s get real.
Even if you go all-out on the tips above, most of your carts will still get left behind by online shoppers. But there are ways to reach those shoppers and, hopefully, bring them back to complete their purchases.
3 Ways to Bring Users Back to Abandoned Carts
- Email Marketing
- Customer Rewards Programs
This series of emails targets shoppers who add a product to their cart but don’t start the checkout process. It’s really important because it serves to remind customers about what they were really close to purchasing in order to get them to go back and purchase the thing.
Abandoned Cart Tips
- Optimize “From” line, subject line & preheader text
- Use a clever title (if it’s on brand to do so)
- Provide a discount
- Show the product itself
- Include a CTA
- Test out showing dynamic product name in CTA
- Implement “Added to Cart” trigger
- Determine your trigger filters
- Link to the product page OR the cart
- Come up with catchy or funny abandoned cart copy
- Include customer reviews or user-generated content
Fun Fact: 69% of online carts are being abandoned by users.
No. of Emails: 3-4 emails over the course of 3 days.
Cart abandonment by retailers such as combining multiple products or variants into one parcels and serving all items after customer confirms they would like the combined purchase. Other marketers apply usage based marketing strategy where customers have limited budgets, so offer them smaller discounts on certain goods before shipping off their entire order at discounted rates later. Nonetheless, for products that are highly personal and where the products will be used by both men and women such as shaving blades or razor cartridges, it is advisable to show each category of razors separately before sending off the entire purchase.
The stuff sold at Amazon has another feature called returns service (or seller accepts returns on items purchased from Amazon). If any customer continues with their purchases but change of heart after receiving goods in hand refund-rate naturally goes up. With such consumer features, there would be very less shopping cart abandonment as customers will actually want to return goods and ask for refund if after receiving the products they don’t like it or their needs change afterwards.
This is because:
- A) Shoppers using basket check out without any doubts since basket doesn’t send wrong item/bundles to shopper
- B) Prompt shipping makes customers feel safe about Returns
- C) The process of ordering, payment and receiving goods themselves makes customers feel protected about Returns
- D) E-Commerce sites like Amazon.in allows for business sellers to make their product available with Great customer services (i think this is most competitive advantage of digital e-commerce). Amazon.in Amazon has launched in India in 2013, to help increase country’s e-commerce movement towards digital assets when the Amazon online marketplace company experience massive growth worldwide including Indian market where has made great strides. Amazon works by automatically matching products sold through its website with buyer intention based on their search queries and product descriptions , leads shoppers to different parts of store ranked according to popularity ranking by lines necessary for customer shopping basket . Customization support also comes available so as to display or hide product listings and options based on various user settings, This factor is very important for increased customer transactions with automated response towards shopping basket updates.
Amazon pioneered cloud computing in India by providing its Essential Machine Learning Service (EMSS) which offers machine learning-based forecasting services such as recommendation engine that would help companies formulate strategies through predictive analytics . Multiple factors like market events, competitors’ launches , products actions and price fluctuations impact the ranking in terms of products promoted for sale on Amazon.com , E-commerce sites have a responsibility towards customers’ transactions satisfaction by providing timely complaints handling services and making returns easy upon buyers disappointment . So, online shopping has increase increasing demands from consumers who dream to get the best e-commerce experience with their purchases , delivery concerns convenient enough before placing an order thereby ensuring proper comfort about return whatever would be the reason behind does it lead customer again attempts at shopping and reliable customer support response. Competitive pricing and free delivery on first four products purchased does help set up a marketplace of use again.
Many online retailers have cart abandonment rate in higher ranges which compels them to develop new strategies to increase the rate of cart abandonment. There are several ways you can minimize your cart abandonment rate by following these steps:
- Make it easy for visitors to buy with a clear call-to action on every page, rather than buried deep within the navigation menu or drop down sidebar menu. Customers should be able to find what they want easily and quickly without having too much scrolling through different screens before landing.
- Shoppers abandon cart abandonment rate is high. The main reason they leave cart abandonment rate is confusion of the checkout process. Make checkout super simple for them
- Cart abandonment rate is a key metric in ecommerce that indicates the rate at which visitors interact with a retailer’s website and then abandon their purchase without actually buying anything or signing up for a newsletter or other promotional messaging from the retailer—a so-called form abandonment rate.
- No clarity of products – Some websites are full of just random products, thinking to copy amazon business model but fail to understand that when starting one should only go for 1 single sub niche to sell, create your brand in 1 single sub niche then start selling other products related and around that niche.
Cart abandonment rates have been one of many strategies used to measure online shopping, but they are often misunderstood by marketers who don’t understand how much it really matters when you’re selling physical products rather
Shopping cart abandonment rate (also known as cart abandonment or cart drop rate) is the percentage of all visits to a website in which an unfulfilled purchase occurs before the sale. According to research, on average 79% of online shoppers think about making a purchase while surfing websites but are not willing to buy. Of these items, only 25% are actually purchased on each visit with another 7% being abandoned at least one time during checkout process.
In cart abandonment rate, the rate at which a shopper abandons their cart before completing a purchase. In e-commerce shopping cart abandonment rate is one of the primary factors retailers need to know about in order to increase conversion rates and profits. If marketers can reduce cart abandonment rate by even 1% they have doubled sales revenue from that site in some cases!
That’s all you need to know about the cart abandonment.
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