25.Oct.2017 Ganesh - Shopping Cart Abandonment
5 Habitual Reasons Why Online Shoppers Abandon Their Shopping Carts Abruptly
As an online store owner, there is nothing more worse than seeing hard earned traffic being lost as cart abandonment.
But, why do customers leave?
Here are 5 reasons why shoppers could be abandoning carts in your online store. Keep an eye for these reasons, you could be committing these eCommerce sins without knowledge.
- Undeclared shipping costs
- Limited Product Information
- A messy checkout page
- Minimum order threshold
- Delivery takes too long
Let’s see each of these online-shopper-turn-offs in detail now:
Undeclared Shipping Costs
Joe is looking to buy a daily running shoes and finds something he likes on an online store. The shoe make, color, size, price and everything matches his preferences.
To Joe’s surprise, when he reaches the checkout page where the payment happens, he finds an additional $20 added to the product price.
This undeclared shipping cost will definitely make Joe rethink his decision to buy the shoe he spent so long searching, researching and fixing as a final choice. If Joe decides not to pay that additional ‘undeclared’ $20, he will simply abandon the shopping cart. Even worse, he might check for the same shoe and move on to a competitor store.
Limited Product Information
Online shopping has some inherent drawbacks. The biggest disadvantage is that your customers cannot touch and feel the product before buying it.
The best they can get is some multi-angle images or a product video along with a written content that explains the product in detail. So, when either one of this is unavailable, it gets the customer thinking:
- Is the product really what it is shown as?
- Will the measurement or specs be proper?
- What if the quality is not worth the price?
These questions might force them not to buy the product at all.
Shortfarm’s Product Information Report assert these facts in numbers. At least 26% of customer abandon shopping carts if product images are not available. An estimated 30% will abandon for lack of product content.
The bottomline: Detailed product information is one of the key ingredient to reduce shopping cart abandonment.
A Messy Checkout Page
Be it at a brick and mortar store or in an online store, nobody like waiting. Things should move fast and should be done in the whisk of a second. That said, the checkout page is one place where most customers drop off.
Why? Four major reasons can be blamed:
- They are asked for too much of unnecessary information
- The checkout process takes a long time to complete
- The payment page does not load properly
- The desired payment mode is not available
With these reasons in mind, the checkout process should be optimized for maximum conversion. Don’t give any reason for customers to abandon their cart. Optimize the checkout process, preferable using a single page, to improve overall conversion rate.
AO aces at providing a seamless checkout process with its minimal yet comprehensive checkout page:
Minimum Order Threshold
A minimum order threshold demands that your online shoppers have a minimum cart value amount to be eligible for free shipping or additional discounts. While a minimum order threshold helps balance the scale in terms of costs and profitability, a high minimum limit can actually backfire.
Guest shoppers and customers who are looking to pick up just one product might be intimidated by the minimum order limit. They will have to skip the frequent smaller purchases to save shipping costs. Sometimes, these abandoned smaller purchases, if put together, can give your business much more sales volume than those achieved with the help of a minimum order threshold.
Setting a minimum order threshold is a challenge. The ceiling limit which might fit for one store may not fit another. It varies according to the product range, the customer segment, their spending habits and overall industry sentiment. For maximum conversions and reduced cart abandonment, play the minimum order threshold to your benefit.
Delivery Takes Too Long
The low price benefit may not make your customers more patient. Despite the ground-low prices, they would still expect the delivery span to be at a bare minimum.
eCommerce trends suggest that, there is an increasing shift towards same-day delivery or omni-channel shopping where customers get their products as early as on the same day for no extra cost.
The moral of the story is, customers are impatient to have their product delivered. They are even ready to pay for a quicker delivery but not willing to wait longer. Long delivery periods are often shun since omni-channel retailers make it possible for them to buy the product instantly through their brick and mortar store.
The Art Of Retargeting: How To Win Back Customers Who Abandoned Shopping Carts
Retargeting is a surefire way to win customers who had earlier abandoned their shopping carts. Thanks to Google Display Network, Facebook Ads and several other tools for email retargeting, it is now possible to turn abandoned shoppers into paying customers.
Several success stories, including those like envelopes.com show that email retargeting campaigns can achieve a drastic reduction of cart abandonment up to 40%.
Recovery email campaigns can be used in two ways, both involving personal information and past browsing/shopping habits of the customer.
- Shipping concession: Offer them free shipping or a coupon code that saves them from expensive shipping cost.
- Discounts: A personal deal that offers a discount is the easiest way to retarget and win back customers. Discounts work irrespective of the reason as to why the customer had abandoned the cart.
To make the retargeting campaign more effective, split it up into several stages, each with its own associated targets. Here is an example of how multi-stage retargeting works:
Small changes to your online store’s customer pathways combined with retargeting can help bring down the cart abandonment rate to a bare minimum. While cart abandonment cannot be eliminated completely, a lion share of it can be prevented by diagnosing the reasons and taking remedial action.
Suffering from high shopping cart abandonment? TargetBay’s unique shopping cart abandonment solution can help recover over 70% of your sales.