You might have often heard cart abandonment in eCommerce. So, what does Cart abandonment mean and what are the common reasons for cart abandonment?
Read here to find out.
What is Cart Abandonment?
When a potential consumer begins the checkout process for an online order but abandons it before completing the transaction, this is known as shopping cart abandonment.
Any item that a shopper adds to their shopping basket but never completes the transaction is labelled “abandoned.” Shopping cart abandonment is a critical component of the online shopping experience that companies monitor closely.
The total number of completed transactions is divided by the total number of transactions that began to get the shopping cart abandonment rate. This rate determines what percentage of a website’s users indicate buying intent by adding an item to their cart but do not finish the transaction.
The cart abandonment rate is an important indicator for eCommerce sites to monitor because a high rate can indicate a bad user experience or a broken sales funnel. Because lowering shopping cart abandonment leads to increased sales and profitability, many online merchants are focusing on improving their checkout processes.
Why does Cart Abandonment happen?
Every eCommerce store is unique, but the following are some typical difficulties that cause cart abandonment on many sites:
- Lack of trust – Internet consumers are not always comfortable entering credit card information online. Increase conversions by using social proof and developing a strong brand to increase trust on the checkout page and throughout the site. A liberal return policy can also alleviate customer anxieties.
- High delivery costs – Customers frequently abandon shopping carts after experiencing sticker shock when they learn how much their product will cost with shipping. By giving free shipping promotions, you may avoid this.
- Complexity – Because online customers have short attention spans, they will abandon the checkout flow if it is too complicated or time consuming. Make the checkout procedure as simple and painless as possible to avoid this.
- Browsing – Many customers who add things to their cart but do not complete their purchase are simply browsing with little purchasing intent. Incentivize these users to buy right away by offering limited-time promotions and instilling a sense of urgency.
Customers frequently have strong preferences for how they would like to pay and will only finish a purchase if their preferred method is available. Reduce this issue by accepting the most popular payment options for your intended audience, such as American Express and PayPal.
Price is too expensive – Web users frequently compare prices to find the best rates. You may help prevent clients from abandoning ship by providing special discounts and coupon codes to dissuade them from getting scared off by excessive pricing and looking for better bargains elsewhere.
- Technical Problems – All technology is prone to technical problems and errors. Keep an eye on your analytics and perform regular checks on the checkout process to ensure there are no show-stopping errors. Also, make sure that the code on your checkout page is streamlined so that it does not take too long to load.
eCommerce loses more than $18 billion every year due to abandonment. As a result, lowering the expenses of shopping cart abandonment is critical. You can read our article on how to reduce cart abandonment and increase purchases.