It is painful for an online business if a customer abandons the cart after they wishlist the items. It is like losing a battle when you are an inch close to winning it. JHKinfotech – a renowned ecommerce website development Australia explains what factors perform as catalysts in shopping cart abandonment. Also, you are in for a treat as we discuss the tips to encourage purchases through your online store.
What Is Shopping Cart Abandonment?
Cart Abandonment is a common terminology in eCommerce business describing the situation where shoppers add products to the cart but abandon the cart just before the billing. Ultimately leaving the site without completing the purchase. The customer leaves the site before clicking the payment or “Confirm Button”. Ultimately, this fetches no benefit to the eCommerce website.
Although cart abandonment is a harsh reality for all eCommerce businesses. Every website has a cart abandonment rate, but if the rates are constantly uplifting, you need to do something about it. As per the surveys, the cart abandonment rate including all the industries is 69.57% which amounts to the loss of $4 trillion sales approx.
Web design company in Australia believes that it could be because of an inefficient checkout process, loading speed, poor shipping policy, and more. People nowadays are overloaded with options which makes them even impatient with small glitches they find on the website.
If an ecommerce website is your brand’s online store then an ideal web design is like the customer assistance that a person gets at the store. Unsatisfactory assistance while shopping or payments might evoke the person to give up the shopping cart and leave empty-handed.
Factors Leading To Shopping Cart Abandonment
60% of the traffic on the website comprises hot leads. The visitor is 100% positive of buying the product he saw on your eCommerce site, the question here is that he buys from your site. Most customers abandon the cart at the last moment either they change their minds or the checkout is not cooperating with them.
Surveys say that businesses have seen a 35.26% increase in their conversion rates after optimizing their checkout processes. Nearly $260 billion are recoverable through checkout improvements.
Reasons For Cart Abandonment
Surcharges At Checkout (55%)
55% of the time people are amazed to see the actual billing with skyrocketing costs. The surcharge sometimes is double the entire cart’s cost. The customer comes across the cost as he enters his shipping details. This unpleasant surprise lets the customer drop his idea of shopping from the portal.
Profile Creation (34%)
ecommerce sites mandatorily require the person to create an account. Although it is necessary to know your clients, it is tedious for a consumer to create an account all over again when he is at the checkout. Result? Cart abandonment.
Complex Checkout (26%)
As said, ample choices make people impatient. Complex checkout with too many details or nary dropdowns makes people frustrated to the extent where they abandon the cart and move to your competitor. Web designers say complex checkout processes create a lifetime bad impression of your website. Leading to loss of sales and customer retention.
Total Cost Not Visible (21%)
Most of the time the total cost is not available until the consumer reaches the UPI page or gets the notification asking card password. It is yet another classic example of an inefficient checkout process. Transparency is a must for businesses to succeed in this cut-throat competition.
Don’t trust the site (17%)
First time visitor is new to the site and has a hard time entering his credit/debit card details as he is afraid of being conned. Plus first time purchases often leave people curious about the quality of the product. Through efficient marketing and customer retention strategies, ecommerce sites can establish their credibility in the market.
Web Design Glitches (17%)
Fonts or tabs are not visible or the field space is shorter than the words to be entered, CTAs not working, etc. A person might try once or twice to get through the checkout process, but if the issues remain, he might give up and move to other places.
Impractical Return/Refund Policy (11%)
Customers often come across return/refund policies just before the checkout. Impractical or ambiguous refund policies may leave customers baffled, resulting in them leaving the cart just before the purchase.
Lack Of Payment Modes (6%)
Multiple payment modes are like leaving all the options are open for the customer to pay. Studies suggest that multiple payment modes (credit/debit card, COD, UPI, and wallets) increase the chances of spontaneous purchases. With insufficient payment modes there are chances a person abandons the cart thinking of coming back with the solution then never comes back. Or he might dart to other ecommerce sites giving payment solutions he needs.
Card Declined (4%)
Your Card has Declined, this is the most painful message a consumer could receive just at the end before he is making a purchase. There may be a problem with the buyer’s card or the source bank. But, to be on the safer side, ecommerce brands must run beta tests ensuring that the issue is not with the coding.
Minimum Purchase Restrictions (30%)
Some ecommerce sites have minimum purchase conditions. This might be because the tariffs on the shipment do not fit in the cost.
Checkout Loading Speed
Every web development company vouches for page loading speed. This is the biggest bummer when it comes to the checkout process. Again if the customer has to wait unnecessarily he will rather wait in the queue at the cashier counter and not purchase online. The main motives of ecommerce are ease and speed.
With factors and their probability rates, you can now figure out which issues can be sorted at your end. Increasing the probability of sales with that percentage. With the help of an affluent web designing company, you can sort out most of the aforesaid issues, increasing sales conversion.
How Cart Abandonment Affects Your Business?
Cart abandonment is a percentage that is derived by taking the number of successful transactions and then dividing them by the number of times a purchase is initiated. For instance, out of 100 transactions, 30 are successful. Then the abandonment rate will be 70% as the completed transactions are only 30% (30 divided by 100).
Once you have derived the percentage, you can compare the same with your industry average. If your cart abandonment rate exceeds your industry average, then your online business is in trouble. A higher cart abandonment rate leads to lower than targeted sales, then higher inventory purchase/preserving costs and ultimately a huge loss in the business.
It is easier to work on reducing cart abandonment than to bear a massive financial loss in the business.
Tips To Stimulate purchases through the online store
- Eliminate unnecessary steps at the checkout process. Further make the process easy by incorporating drop-downs, smart suggestions and pre-entered information (based on previous purchases).
- Do not force any consumer to create a profile, rather encourage them to associate with you.
- Send detailed shopping cart abandonment emails (including products and price). In case a person accidentally drops the cart and is under an impression that he has purchased from your site.
- Prioritize marketing and SEO that will help your brand with recognition, authority building and credibility.
- Be clear on pricing. No hidden costs.
- Display the SSL certificate on your site that reveals that all the monetary transactions are secure.
- Highlight return and cancellation policies.
- Allow reviews on products as word of mouth is ultimate in business.
Conclusion
Although cart abandonment is an inevitable fate for any online store. But it should not be from your end. With years of experience and expertise, JHKinfotech is here help you immune your website from cart abandonment catalysts. Also, helping you stimulate purchases from your online store and achieve as much profit as possible.
