Your online checkout process is more important than you may think. Retailers often devote most of their resources to other aspects of their site. They think that if they offer the right products and an appealing online store, customers will sit through an inconvenient checkout system.
This is a mistake. While the checkout process may seem like an afterthought, it’s actually the most crucial part of a transaction. When consumers reach this stage, they’re usually prepared to buy a product. Unfortunately, a poorly managed e-commerce solution can frustrate potential customers and ruin a deal.
That’s why shopping cart abandonment is so devastating for businesses. It takes a great deal of work to get a user to place an item in their cart. This effort goes to waste when the consumer leaves a site without making a purchase. High abandonment rates can mean that a site contains serious flaws, and if they aren’t fixed, they could continue to cost a business sales.
Today’s consumer has more choice than ever. If shoppers don’t like your website, they can buy from your competitors with the push of a button. Therefore, maintaining an efficient online store is extremely important. Through three statistics, this article will outline some key strategies that will help you improve your website and retain a larger number of shoppers.
1. Consumers Abandon 67.45 Percent of Online Carts
It’s easy to minimize cart abandonment. You may think that it doesn’t affect your business disproportionately, or that you can fix other aspects of your site to make up for weak spots. But this issue affects you (and other retailers) more than you might think.
Case in point: The Baymard Institute found that consumers desert 67.45 percent of all shopping carts before they complete a purchase. If you think that abandonment isn’t an issue for your business, imagine missing out on almost 68 percent of all potential sales. That statistic means that a substantial amount of revenue slips through your fingers and possibly falls into your competitors’ hands.
In some ways, this statistic can be helpful for businesses. It sets a definitive benchmark for retailers, so if less than 68 percent of your shoppers abandon their carts, you’ll know your store is working. But there are still measures you can take to make your checkout process more effective.
2. Price Is the Biggest Motivator for Abandonment
Price plays a big role in just about any transaction, and this principle applies to shopping cart abandonment. According to Statista, 56 percent of surveyed shoppers left items in their carts because they carried unforeseen costs. Furthermore, 36 percent of respondents abandoned purchases because they were able to get a better price from a competitor, while 32 percent said that the price of an object was too high.
The simplest way to solve this problem is to make your pricing more transparent. Shipping costs, taxes, and other fees can drastically raise the price of your products. If a product’s total price drastically exceeds its list price, potential customers will abandon the purchase. Make these costs available earlier in the transaction so shoppers can make this decision earlier.
3. Travel and Financial Services Are the Biggest Offenders
Shoppers obviously take expensive or important purchases seriously. Planning a trip, for example, costs a significant amount, while monetary services can have a serious effect on a consumer’s financial well-being. That’s why these industries see the highest rates of abandonment. Travel agencies usually lose about 80.4 percent of customers at checkout, while financial institutions see 79.3 percent leave.
Less essential services such as retail, e-gaming, and fashion follow with 73.9, 70.1 and 68.3 percent of shoppers abandoning carts in these industries, respectively. While these industries focus on leisure activities, businesses within them should take proactive steps to reduce abandonment rates.