Recently in pop culture, a popular app called TikTok had led the way to reintroduce the abandoned shopping cart phenomena. A TikTok user had created a challenge for users to shop on President Donald Trump’s website with the intention of not purchasing the merchandise they placed in their cart. Despite this movement’s political undertone, it brought up the conversation about abandoned shopping carts’ adverse side effects in the eCommerce industry.
Abandoned shopping carts not only provide limited available stock for other consumers, but it gives false margin hopes to eCommerce business owners. They cannot predict how many of the items will actually sell, and the potential buyers interested in purchasing will no longer be able to buy items that are marked “out-of-stock” due to sitting in another person’s cart. Additionally, now you must use your advertising resources to re-engage the consumer to complete their purchase from you.
Simply put, if you are an eCommerce owner, abandoned shopping carts aren’t only annoying; they are dangerous to your bottom line. So what causes a shopper to abandon their cart on your website?
There are many possible reasons your consumers are not completing their shopping experience with you. Thus, affecting your business process. A 2017 study from Baymard Institute found that abandoned carts happen more frequently with higher shipping rates at the end. Still, they also found several other key factors that enlighten where you can focus on improvement.
High Shipping Costs/ Shipping at the End
As a consumer, you can purchase items off any site you want these days. It is no surprise that people tend to go straight to Amazon for most of their goods. If you look at Amazon, they will always provide the consumer with shipping information upfront, which allows the consumer to anticipate the final cost at the end. Suppose customers are going to your website and click to purchase only to find out that your shipping costs are twice that of Amazon’s or not disclosed at all until the very end of the purchase process. In that case, the customer is willing to search elsewhere for their product and may never return to complete their transaction.
No one likes spam emails. Having customers make an account before purchasing not only delays them from the instant gratification of buying a product, but they are now worried they will receive spam emails or, worse yet, you will sell their information to other companies.
You provide no help at checkout.
Online eCommerce shoppers want the customer service experience that you receive in a brick and mortar but the convenience of shopping from their desk or phone. When a customer reaches the end of their journey at checkout, they experience an emotional experience to get there. They weighed the pros and cons; they evaluated if they felt they needed the product and how much it was worth to them. They want to feel confident in their purchase. Much like a moving car on a highway, you don’t want your customers to feel trapped. Providing help at checkout to answer any lingering questions results in the friendly atmosphere of what a customer would find in a brick and mortar shop and provides confidence in their purchase.
Your user experience is poor.
Broken Links, slow upload, and hard to navigate sites, even entering the address twice, can create frustration, and the customer gives up. By ensuring that you provide a friendly and smooth user experience, you enforce the confidence they should have from buying from you.
After Target’s massive customer breach via its online website, and countless other major corporate security breaches, poor user experience scares others away from inputting valuable and personal information. They fear they can’t trust you.
Your website lacks trust.
These days there are a hundred shops to choose from, and then there is Amazon. Amazon is a multibillion-dollar e-commerce website that provides all the trust a consumer would ever need. So how do you match that? Well, take the cues from them, provide reviews for products, and experience in your shop. Have clear pictures of what item they are purchasing so they know what to expect when it arrives. Lastly, always providing contact information. Having contact information provides a sense of security that they know they can reach out to someone to get answers if anything went wrong.
You fixed all those problems, and abandoned carts still pose a problem…now what?
Hopefully, these five tips will help you mitigate your abandoned cart problems and help you understand where you can focus on improving your supply chain process. If you find you are still having issues with abandoned carts, know there are many resources available, including us, to help guide you through the customer journey and your journey to evaluate potential solutions!