How To ‘Hulk Smash’ Cart Abandonment
The most recent studies on shopping cart abandonment rates and statistics find the rate to be approximately 59%. What this means is that in 59 times out of 100, a customer will leave an online store after adding an item to the shopping cart, never completing the sale.
This number can alter slightly in some cases. A study by PayPal found that 45% of consumers had abandoned carts multiple times when the cost of the product being purchased was $100 or greater.
By understanding why shoppers are prone to abandon a cart without completing the sale, you can more efficiently optimize your store to reduce this rate across the board. While the list of abandonment reasons is a long one, the following five simple fixes can help you capture more sales while reducing abandonment rates.
State Shipping Costs
One of the surest ways to decrease cart abandonment rates is by stating the shipping costs upfront and as early during the checkout process as possible. Customers want to know what the cost of shipping is going to be when they are shopping for anything online. You don’t want to risk losing the shopper because they were presented with unexpected costs, which reports say contributes to 56% of cart abandonment.
The hard facts show that shipping prices play a strong role in cart abandonment rates, accounting for over 50%. Not only do you want to inform customers of the shipping price as early during the process as possible, but you also want to assure that the shipping price being offered is competitive and affordable, including expedited and discounted ground options for customers to choose from.
Offer Discounts & Coupons
If you have yet to offer discounts or digital coupons at your online store, the time to consider doing so is now. According to a recent report on mobile coupon statistics and digital coupon usage, over 96% of consumers will shop for a digital coupon before buying a product online. What’s more, a similar study found that over 66 million digital coupons were redeemed by consumers in 2013 alone.
Things to consider offering to help reduce abandonment rates include a coupon for a discount off a future purchase, or free shipping when they make their next purchase. Always feature discount code entry fields in the shopping cart to allow for customers to redeem digital coupons they’ve earned or have found online.
Feature Online Reviews
Juggernaut online stores like Amazon and eBay have made it clear that integrated comparison shopping features and reviews are an important factor in reducing cart abandonment and increasing sales.
So just how important are reviews in securing ecommerce sales and preventing abandonment?
- A related article by Econsultancy finds that 61% of shoppers take the time to read reviews before making a buying decision.
- In an iPerceptions 2011 report, it was found that 63% of consumers are likelier to make a purchase when customer reviews are available about the product.
- An eMarketer report found that consumer reviews on a website have 12 times the trust factor as compared to any other review.
Assure Site Security
A little known fact, but studies have found that 35% of ecommerce websites still don’t show proper security badging, or even have adequate site security in place in the first place. An intrinsic element of consumer confidence is found with them feeling that their personal financial information will be safeguarded and secured at the time of checkout. With countless security breach stories sweeping mainstream news, this is a pivotal aspect of reducing cart abandonment rates.
A number of services providers are out there that offer competitive annual fees to add a layer of encryption to your website. What’s more, upon integrating such security elements, you are able to place a security badge on your website that assures consumers that it’s safe for them to shop and tender payment to your business online.
Make Returns Easy
A variety of studies, polls and surveys have determined, conclusively, that your online product returns policy is directly linked to sales and profits. It’s also an incremental factor in reducing abandonment rates. Consider these facts about the influence a returns policy has upon your customers and sales. When crafting your policy, make sure you bear in mind these following facts about your prospective shoppers.
- Over 60% will take the time to read the policy.
- About 79% want to know that return shipping is free when making a purchase.
- 81% want to know that a simple system for making returns is in place.
- 41% are likelier to impulse shop if your returns policy is convenient.
- More than 85% won’t recommend your store to another if the returns policy is a hassle.
Of the five things that you should be focused on when trying to reducing shopping cart abandonment rates, it’s no wonder that shipping and returns are two of the most important elements.
It’s not uncommon for retailers to struggle with creating their online product returns policy. Have a look at a related guide we’ve created to help you better design yours by learning what consumers want from ecommerce returns. In closing, we leave you with this detailed infographic that can help you better understand why shoppers abandon the cart.