The Top Two Ways to Reduce Shopping Cart Abandonment
Key Takeaways
- 69% of online shopping carts are abandoned
- 4 in 5 of the top reasons for shopping cart abandonment have to do with user experience (UX) design and website functionality
- 61% of shoppers will abandon a purchase because of the shipping rates, taxes, and fees associated with completing the purchase
According to the Baymard Institute, 69% of online shopping carts are abandoned—illustrating that even though it’s easy to find what we need online, it’s just as easy to change our minds, close the browser, and move on.
Shopping cart abandonment is an inherent part of online shopping. For many, browsing online is about research, price comparisons, gift ideas, saving items for later, or a way to offset boredom.
However, for those that aren’t “just browsing,” the top five reasons for shopping cart abandonment are:
- Extra costs too high (shipping, tax, fees) – 61%
- The site wanted me to create an account – 35%
- Too long / complicated checkout process – 27%
- I couldn’t see / calculate total cost up-front – 24%
- Website had errors / crashed – 22%
All of the reasons above come down to two things: user experience and logistics. So, how do you solve for those and make it easier for your customers to shop with you?
According to the Baymard Institute, 69% of online shopping carts are abandoned—illustrating that even though it’s easy to find what we need online, it’s just as easy to change our minds, close the browser, and move on.
https://baymard.com/lists/cart-abandonment-rate
User experience design: Surfacing the right information at the right time
According to Baymard, four of the top five reasons for shopping cart abandonment have everything to do with user experience (UX) design and website functionality. But UX design is a complicated. It includes brand identity, website design, and usability. It can make or break a purchase before a consumer is even ready to buy.
First impressions are everything
Your website may be the first interaction a customer has with your brand. If it is hard to navigate, challenging to find something, or even just a little bit clunky, you can lose a potential customer. And all of that can happen in the “just browsing” phase before a shopper has even considered you as a viable option.
Even if someone is in the “research” phase, if your site is clean, organized, easy to use, and gives them the information they need, there’s a higher chance they’ll return when they are ready to make their purchase.
Turn a first impression into a lasting one
We aren’t UX experts, but there are a few ways in which UX design can augment the buyer’s journey by putting the right kind of information in front of your prospective shoppers at the right time.
If your shoppers have to jump through hoops so they can see what they’d be spending with you, you’re more likely to lose the sale. Consider this: If 61% or shoppers abandon carts because extra costs (shipping, tax, fees) are too high, then they probably couldn’t figure that out soon enough in the process. Similarly, 24% directly reference the inability to calculate total costs up-front as a factor in abandoning a purchase. That’s a lot of lost sales.
Instead, if you can improve your website design to surface information more quickly, you can help your shoppers make faster, more informed buy decisions. That’s something they can trust and will remember.
Now, let’s talk about the #1 offender: Shipping and logistics
Overwhelmingly, the number one reason for shopping cart abandonment are the extra costs associated with completing a purchase. Sixty-one percent of shoppers will abandon a purchase because of the shipping rates, taxes, and fees associated with completing the purchase.
Additionally, another 16% of respondents cited “delivery was too slow” and 10% said “returns policy wasn’t satisfactory.” Clearly, logistics play a role in eCommerce purchasing decisions. More importantly, it highlights an opportunity to improve conversion rates by updating inventory management and fulfillment strategies.
In particular, Amazon has been the leader behind evolving customer expectations. Just a few short years ago, five-to-seven business days at a premium was the standard, but that has been replaced with free, two-day shipping, and same-day is not far behind.
New industry standards
It’s hard to compete with the instant gratification of an in-store purchase, but eCommerce retailers are well on their way to creating a compelling alternative with faster, more affordable shipping.
In particular, Amazon has been the leader behind evolving customer expectations. Just a few short years ago, five-to-seven business days at a premium was the standard, but that has been replaced with free, two-day shipping, and same-day is not far behind.
In order to convert more sales, eCommerce retailers have to price products competitively and reduce shipping times and costs. For many, it’s going to come down to rethinking logistics.
Did you know?
- 73% of shoppers today want affordable, fast shipping
- 49% want free shipping and 35% want easy returns
- One of the top features when making a purchasing decision is delivery speed (54%)
- Shoppers can shop anywhere—even when they’re shopping: 76% of shoppers use their smartphones while shopping
