Nearly 70% of online shopping carts are abandoned without the customer ever completing the purchase. According to Business Insider, that added up to over $4.6 trillion in the global economy in 2016. So, what can online retailers do to fix this problem? Keep reading to learn why cart abandonment is so prevalent, and the steps you can take to recapture potential sales in your business.
Top 3 (preventable) reasons for cart abandonment
Customers abandon online carts for a variety of reasons, ranging from issues with your online store to simply getting distracted and leaving their computer. Studies show three common, and often preventable, reasons customers do not complete the checkout process.
1. Shipping cost sticker shock
For a whopping 61% of U.S. shoppers, the number one reason they don’t complete the checkout process is unexpectedly high shipping costs. Customers may have found your product prices acceptable, but high shipping costs can change their view completely. Not every company can subsidize shipping, and even fewer can on all orders, but here are a few things you can do to try to reduce your customers’ shipping cost shock:
- Price fairly: Review what you are charging your customers for shipping against what your actual costs are. It’s no sin to turn shipping into a revenue stream, but if these costs are excessive, it may be costing you more in sales than it’s worth.
- Offer options: Depending on your carriers, consider offering customers slower, but more cost-effective options, such as UPS 3 Day Select instead of Next Day or Second Day Air.
- In-store pickup: If you also have physical stores, consider offering in-store pickup as an option.
2. Lack of trust in your site
Whenever a first-time customer makes a purchase, they are demonstrating trust in your ability to fulfill their order, charge them accurately, and most importantly, protect their data. There are several website attributes that could cause customers to consider shopping elsewhere:
- Site maintenance: If your site has blurry images or broken links, customers may doubt your ability to meet their needs.
- Online security: Include a “Trusted Site” logo from your certificate authority on your site to tell customers that you have properly secured your site.
- Return policy: Having a complete and accessible return policy on your online store can provide customers with the reassurance that if the product does not meet their expectations, there will be a way for them to address this issue.
- Shipping clarity: A shipping information page provides customers information they will want to know before committing to a purchase, such as how long after an order is placed it will be shipped or what shipping carriers and delivery options are available.
3. Frustration during the checkout process
The main perk of online shopping is convenience. If your checkout process is slow or tedious, customers get frustrated quickly. Take the following three points into consideration to mitigate this concern:
- Guest checkout: In 2016, 33% of U.S. shoppers abandoned their carts when forced to create an account. Having a customer create an account can be beneficial for your business, but, if customers are forced to create an account to make a purchase, is it worth it? Consider leaving the option for them to check out as a guest to simplify their shopping experience.
- Coupon codes: If you offer promotions with coupon codes, make sure that all your marketing information has the correct coupon codes and expiration dates for these codes.
- Make it easy for customers to reach you: As a best practice, online stores should always have a “Contact Us” page to allow customers to easily reach out. If customers are experiencing frustration, being able to reach you can be the deciding factor on whether they give up or not.
Successful online retailers manage these issues to ensure that when customers abandon carts, it is not due to failures of the business. Taking these steps can reduce the amount of lost revenue, as well as increase your business’ reputation with both current and prospective customers.
For more insight on selling through digital channels, see Primed: Prompting Customers to Buy.
This blog was originally posted on the SAP Anywhere Customer Success Portal, and has been reposted with permission.Comments