Shopping cart abandonment is a term used in e-commerce to describe the situation when a shopper adds items to their online shopping cart, but does not complete the purchase. The reasons for shopping cart abandonment are varied, but can often be boiled down to either a poor user experience on the website, or the shopper simply changing their mind about the purchase. This is a major issue for ecommerce businesses, as it can lead to lost sales and revenue. There are a number of reasons why customers may abandon their shopping carts, such as high shipping costs, unexpected fees, or complicated checkout processes. By understanding the reasons for shopping cart abandonment, businesses can take steps to reduce it and increase sales.
Top 10 reasons for the high shopping cart abandonment rate
- Lack of free shipping: Customers are often deterred from completing a purchase if they are faced with high shipping costs, especially if the total cost of the item is close to the cost of shipping.
- Lack of clear return policy: A return policy that is unclear or difficult to find can also dissuade customers from completing a purchase.
- Hidden costs: Customers may be discouraged from completing a purchase if they are unexpectedly faced with hidden costs, such as taxes or fees.
- Complex checkout process: A long or complicated checkout process can discourage customers from completing a purchase.
- Required account registration: Some customers may be deterred from completing a purchase if they are required to create an account to do so.
- Incorrect or outdated product information: If customers feel that the product information on a site is incorrect or outdated, they may be discouraged from completing a purchase as they don't feel confident that they will receive the product that they want.
- Poor site design: A site that is difficult to navigate or has a poor design can have a negative impact on a client's buying intent because they have to think of how to navigate your site rather than enjoying the shopping experience.
- Slow site performance: A slow loading site can also discourage customers from completing a purchase as they will feel tired of waiting for the page to load and will rather shop somewhere else.
- Lack of customer support: If customers cannot easily find a way to contact customer support, they may be discouraged from completing a purchase. Lack of customer support contact details or a chat can make your site look suspicious and potential buyers might prefer not to risk and shop somewhere else.
- Security concerns: there are many horror stories about Ecommerce fraud and online shoppers are aware of them. If customers are concerned about the security of their personal information, they may be discouraged from completing a purchase.
How to calculate the shopping cart abandonment rate?
There are a few different ways to calculate the shopping cart abandonment rate. One method is to take the number of abandoned shopping carts and divide it by the number of total shopping carts. This will give you the percentage of abandoned shopping carts. Another method is to take the number of abandoned shopping carts and divide it by the number of completed purchases. This will give you the percentage of abandoned shopping carts relative to the number of completed purchases.
For example, let's say that you have 100 total shopping carts and 10 of them are abandoned. This means that your shopping cart abandonment rate is 10%. Now, let's say that you have 100 total shopping carts and 20 of them are abandoned. But, out of those 100 shopping carts, only 50 of them result in a purchase. This means that your shopping cart abandonment rate is 40%.
What is a good abandoned cart rate?
If you are an online retailer, it is important to know the average cart abandonment rate so that you can compare your own abandonment rate to the industry average. By knowing the average cart abandonment rate, you can also identify areas in which you can improve your own website or checkout process in order to reduce the number of abandoned carts.
The average cart abandonment rate in ecommerce is 70%.
This rate can depend on a number of factors, such as the niche of the online store, the traffic source, and the overall design and user experience of the website. For example, stores that sell high-priced items or items that require a lot of consideration before purchase are more likely to have a higher abandonment rate than stores that sell low-priced items or items that can be easily purchased on impulse. Similarly, stores that get a lot of traffic from mobile devices are more likely to have a higher abandonment rate than stores that get most of their traffic from desktop computers.
Why online retailers should care about abandoned carts
- It costs retailers money - Every time a shopper abandons their shopping cart, retailers lose out on a potential sale. This can have a significant impact on the bottom line, especially for small businesses.
- It's a missed opportunity - When a shopper abandons their cart, it's a missed opportunity for retailers to make a sale. This is especially true if the shopper was close to completing their purchase.
- It's a sign of customer dissatisfaction - If customers are regularly abandoning their shopping carts, it's a sign that they're not happy with the shopping experience. This could be due to a number of factors, such as high prices, poor customer service, or a confusing checkout process.
- It hurts conversion rates - A high abandoned cart rate can hurt conversion rates, as it's a reflection of the percentage of shoppers who start the checkout process but don't complete it.
- It's a waste of marketing efforts - If a shopper abandons their cart after clicking on a promotional email or ad, it's a wasted marketing opportunity.
- It decreases customer lifetime value - If customers are regularly abandoning their carts, it's likely that they're not loyal to the brand or satisfied with the product. This can decrease the customer's lifetime value.
- It's a sign of a poor user experience - If customers are regularly abandoning their carts, it's a sign that the shopping experience is not user-friendly.
How to reduce the shopping cart abandonment rate?
There are a few ways to reduce shopping cart abandonment, but the most effective is to improve the user experience on your website. This can be done by streamlining the checkout process, making it easy for shoppers to find what they're looking for, and providing clear and concise product information. You can also offer incentives for completing purchases, such as free shipping or discounts. Here are some strategies and tactics you can use:
Heuristic evaluation for Ecommerce
At our company, we use heuristic evaluation as a first step in our process of improving customer experience and reducing shopping cart abandonment. We observe and interview users to understand their needs and how they interact with a system. This information can be used to identify areas where customers are likely to abandon shopping carts and make changes to the system to improve the experience.
If you are struggling with reducing shopping cart abandonment, our team can help. We have a proven track record of helping companies improve customer experience and increase sales. Book a free strategy call with us today to see how we can help you.
A list of 11 proven tactics to reduce the abandoned cart rate
Follow these tips to reduce your abandoned cart rate.
- Use an abandoned cart email sequence. When a shopper abandons their cart, send them an email reminding them of what they left behind and giving them a link to complete their purchase. You can use a tool like Klaviyo to automate this process.
- Offer free shipping. Free shipping is one of the most effective ways to reduce shopping cart abandonment. In fact, a study by Boston Consulting Group found that free shipping is the number one reason people shop online.
- Offer a discount. A discount is another way to encourage people to complete their purchases. You can offer a discount in your abandoned cart email or on your checkout page.
- Simplify the checkout process. Make sure your checkout process is as simple and streamlined as possible. This means having as few steps as possible and not asking for unnecessary information.
- Use a progress bar. Use a progress bar on your checkout page to let shoppers know how many steps are left in the process. This will help them better understand where they are in the process and how close they are to completing their purchase.
- Use social proof. Social proof is a powerful psychological tool you can use to increase sales. When people see that others are buying from you, they are more likely to make a purchase themselves. You can use social proof in your abandoned cart emails and on your website.
- Offer live chat. If people have questions about your products or the checkout process, offer live chat so they can get answers in real-time. This will help reduce confusion and increase sales.
- Send abandoned cart SMS messages. In addition to abandoned cart emails, you can also send abandoned cart SMS messages. This is a great way to reach people who may not check their email regularly.
- Use retargeting ads. Retargeting ads are a great way to remind people of your products and encourage them to complete their purchase. You can use retargeting ads on Facebook, Google, and other platforms.
- Use cart abandonment software. There are a number of software programs you can use to automate the process of reducing shopping cart abandonment. These programs can help you track abandoned carts, send abandoned cart emails, and more. Our favorite software is Klaviyo and Mailerlite.
- Test and measure. Finally, it’s important to test and measure the results of your efforts to reduce shopping cart abandonment. This will help you determine what’s working and what’s not so you can continue to improve your results. Reducing shopping cart abandonment is a process, but it’s one that’s well worth the effort.
By following these tips, you can significantly reduce your abandoned cart rate and increase sales.
Need help with your online store?
If you're concerned about why customers are abandoning their carts on your site, our Lean CRO audit can help. Our team will audit your site and identify any potential issues that may be causing customers to leave without completing their purchase. With our help, you can make the necessary changes to improve your conversion rate and keep customers coming back.