Abandoned shopping carts are one of the biggest problems faced by e-commerce owners. It is estimated that up to 70% of users leave an online shop with full shopping baskets without completing their purchase.
This phenomenon affects many businesses and can be one of the main factors limiting profits. In this article, I will show you 6 ways to reduce the number of abandoned baskets in your e-shop.
What is an abandoned shopping cart?
An abandoned cart in e-commerce is a shopping cart with products added by a customer to a virtual shopping cart in an online shop, which was ultimately not finalized and the order was not placed. In other words, the customer added products to the cart but abandoned the purchase for some reason, e.g. stopped being interested in the product, started looking for offers in other shops, was not satisfied with the delivery or payment options, etc. An abandoned shopping cart poses a challenge for online shop owners, as it means a loss of potential customers and financial losses.
Interestingly, the problem of abandoned shopping carts affects essentially every industry, not just online retail. E-commerce comes last on the podium in this ranking, being overtaken by the travel and finance industries:
But don't worry too much - as long as the customer had a genuine intention to buy, abandoned baskets can be prevented and, once the problem occurs, customers can largely be won back!
Where do abandoned baskets come from and what can be done to reduce their number?
The reasons for not completing an order can be many and not all of them can be easily predicted. Every year, the Baymard Institute conducts a study that provides data on the most common reasons why a customer does not complete an online purchase. I will look at the four most commonly cited.
1. Product pricing and hidden additional costs
Customers very often abandon their shopping carts when they are presented with the total cost of their order, including the price of the products and the shipping charge.2. The need to create an account on the site
Creating an account can be additionally burdensome for customers, especially if they intend to make a one-off purchase. In that case, it may seem like an unnecessary effort. From the customer's perspective, creating an account also means having to remember another password. Nevertheless, companies often encourage customers to create an account in order to be able to send them information by email in the future.3. Long delivery time
It might seem that last-minute shopping is reserved only for stationery shops. Nothing could be further from the truth. I myself have been in this situation more than once when I needed a certain product and did not want to look for it in a stationary shop, but I wanted it delivered quickly. This is why it is annoying that there is no information about when the goods will be delivered. From a consumer perspective, delivery time plays a big role and can be a reason to abandon the shopping basket.
As the data collected by McKinsey shows - ever-faster delivery is a real game changer in terms of purchasing expertise. Looking at the motivations and purchasing senses of customers, the ability to offer next day or even just day delivery, is a real must-have these days:
This is why it is so important to decide on a trusted logistics partner - and to place the challenges of the supply chain in the hands of professionals who make even the shortest delivery times achievable.4. The payment page does not inspire confidence
In order for customers to have an enjoyable and hassle-free shopping experience, the payment process at checkout should flow smoothly and follow a logical sequence of steps. A typical transaction process is to sequentially add products to the basket, enter billing information, select shipping options, preview the order, make payment, and receive a confirmation.
If the payment process at checkout is chaotic, this can discourage customers from making purchases. Unusual payment pages, inaccessible popular payment methods, and lack of SSL security for the site are also questionable. Any warning messages are effective in discouraging people from purchasing from a particular site.
What can be done to recover abandoned baskets?
Depending on the industry or specialization, customers may abandon payments for different reasons. It is important to monitor relevant metrics and analyze data to identify where customers stop buying and understand why. It is worth thinking longer about how to increase sales effectiveness and improve conversions. What can you do to recover abandoned baskets in e-commerce?
Here are some tips to help you reduce abandonment rates throughout the buying process:1. Simplify the ordering process
The most important factor affecting the number of abandoned baskets is the complex ordering process. Therefore, it is worth minimizing the number of steps a customer has to take to make a purchase. An optional customer account, a simple shopping cart, and a simple and transparent payment process can help to minimize the number of abandoned baskets. Providing transparency builds trust, and customers are less likely to abandon their basket if they are confident in their purchase.2. Provide full product information
Customers like to have full control over their purchases. Providing full product information, such as images, an accurate description, price, and availability, can help minimize basket abandonment. It is also worth providing customers with easy access to other customers' reviews of the product.
- Offer free delivery
High shipping charges can be a stumbling block for many consumers, and offering free or cheaper shipping can encourage them to complete their purchases. Therefore, consider offering free delivery for orders over a certain amount or permanently for all orders. You could also use different delivery methods and allow customers to choose the option that best suits them.3. Make use of remarketing
If a customer abandons their basket, it is worth using remarketing, which means reaching out to the customer again and encouraging them to complete their purchase. To do this, you can send a reminder email about the abandoned basket. The message should remind the customer of the abandoned items, include a call to action that takes them directly to the checkout page, and offer an incentive or discount to complete the purchase. It is also a good idea to use technology that allows abandoned items ads to be displayed on other websites the customer visits.4. Provide customer support throughout the transaction process.
This can be done through chatbots, live chat support, or even telephone support. Customers may have questions or concerns about their purchase and a responsive support team can help address their concerns.5. Ensure diverse and secure payments
Simplify the payment process. Long and complicated transactions can make it difficult for customers to complete their purchases. By minimizing the number of steps and fields required, you can provide customers with a seamless and simple transaction. Offer multiple payment methods. Some customers may prefer to use credit cards, while others may prefer to use PayPal or other online wallets. Providing customers with payment options can significantly reduce the risk of cart abandonment. Remember to ensure security, your website should be secure and padlocked (SSL encryption).
Improving the design and use of the payment page, offering free shipping, a variety of payment methods, and protecting customers from unexpected costs will have a positive impact on your shop's bottom line. Without a doubt, optimizing your online shop's shopping basket can be a difficult task, but it is certainly an effort worth making.
Try to constantly improve the shopping process. Of course, there are cases of abandoned baskets that cannot be recovered. In such a situation, it is worth using tools such as conversion funnels to help you identify shoppers. This will help you differentiate between customers who abandon before the payment process begins and those who abandon their purchase because of a bad experience on your website. This will allow you to take appropriate action to minimize abandoned baskets. If you need help creating an action plan for your business, contact trusted experts who can help you build a sales strategy to minimize abandoned baskets.