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Read MoreYou have attracted customers with your unique products or services, and they are browsing your online store and adding items to their carts. You're ready for those sales to roll in. But then, just before they check out, they disappear. Cart abandoned. It's frustrating, right?
If you're in ecommerce, you've likely faced this issue. The frustrations are amplified with the development of new technologies where you can view orders and shopping cart abandonment in real-time.
So, why does it happen? Why do customers abandon their carts at the last moment, and what can businesses do to limit it?
In this guide, we'll explore the reasons behind cart abandonment and how smarter order fulfilment options can improve the experience. We'll also provide several key strategies to reduce cart abandonment rates.
Why Does My Business Experience Cart Abandonment?
Online shopping is becoming part of our everyday norm. With choices and deals everywhere, customers have more options than ever before. With so much available at their fingertips, it's no surprise that doubts about purchases pop up more often.
Since commerce began, shoppers have had their uncertainties. But in online shopping, where decisions happen fast, and there's so much to choose from, those doubts can hit harder.
Nearly 7 out of 10 shoppers who add items to their online cart leave without buying anything. That's a significant challenge for ecommerce businesses trying to turn browsers into buyers and action successful order fulfilment processes.
And where customers come from matters, too. Those who land on ecommerce sites from social media platforms are the most likely to abandon their carts, with 91% leaving before buying anything. That's much higher than the number of customers who come from search engines or directly type in the website.
Abandoned carts are a hassle and costly for businesses of all sizes. eCommerce businesses lose an estimated $18 billion a year because of them, a significant amount of revenue left on the table.
So, businesses must figure out why customers are abandoning their carts. By investigating the reasons behind cart abandonment, companies can find ways to make the shopping experience smoother for customers, helping reduce the cart abandonment rate.
The most common reasons for cart abandonment include:
Slow processes
Unexpected costs at checkout
Limited payment options
Mandatory account creation
No discount codes
Out-of-stock items
Slow delivery
The above reasons for cart abandonment are all within your control, and you can address and improve them with improved order fulfilment options. However, it's essential to acknowledge that not all abandoned carts reflect your business practices. External factors, such as customers' financial situations or sudden changes in personal priorities, can also play a significant role in their decision-making process.
Top Strategies to Minimise Shopping Cart Abandonment
While it is practically impossible to completely prevent cart abandonment due to customers having their own choices and different options always being available, there is a lot you, as an e-commerce business owner, can do to limit it.
Based on the most common reasons for shopping cart abandonment in eCommerce, we have put together several key strategies your business can implement to prevent customers from checking out before they check out.
Let’s explore these.
Ensure Transparency in Pricing
One of the most important aspects of the order fulfilment process is ensuring customer satisfaction and building strong relationships. One way to do this is by being upfront about pricing.
Customers who encounter unexpected costs during checkout may leave without buying anything, which isn't good for your relationship with them. So, starting with clear pricing helps build trust and credibility.
Showing all the costs upfront gives customers the confidence to purchase without worrying about hidden surprises. It's not just about avoiding any feelings of being tricked or caught off guard; it's also about showing respect for their time and money.
Almost half of all abandoned carts (48%) are due to extra costs, and with your competitors' continual options available to customers, it’s never been more important to ensure that you are upfront about pricing to keep customers happy and coming back for more.
Implementing Transparency at CheckOut
If you now understand the importance of transparency in your interactions with customers and the potential consequences of neglecting it, such as cart abandonment. In that case, there are several steps you can take to implement transparency at checkout:
Display all costs upfront: Make it a priority to present all costs, including the product price, shipping fees, taxes, and any additional charges, either on the product page or during the checkout process. This ensures that unexpected expenses don't catch customers off guard at checkout.
Provide a cost breakdown: Offer customers a detailed breakdown of the pricing components, allowing them to understand precisely what they are paying for.
Highlight potential savings: If applicable, show discounts, promotions, or savings opportunities to incentivise customers to complete their purchases. This adds value for customers and encourages them to proceed with their transactions.
Show shipping and handling fees early on: Avoid waiting until the final phase of checkout to disclose shipping and handling fees. Instead, show these costs as soon as possible in the checkout process.
If your customers know what to expect, they are more likely to begin their journey to placing an order successfully. Improving order fulfilment options and limiting unexpected costs allows customers to ensure their purchases remain viable.
Offer Competitive Delivery and Provide Shipping Options
Delivery expectations in online retail, influenced significantly by industry leaders such as Amazon, emphasise the importance of fast delivery and diverse shipping choices. Approximately 22% of online shoppers abandon carts due to perceived slow delivery times, while up to 65% refer to high shipping costs as a reason for checkout abandonment.
However, beyond speed, limited delivery options can also dissatisfy customers, especially if they require quick delivery or have specific preferences. The uncertainty of delivery times or high shipping prices compared to competitors offering free or discounted shipping can encourage customers to explore other options, resulting in cart abandonment.
While eCommerce allows businesses to reach a larger customer base, it also enables easy comparison shopping. Failing to meet delivery expectations may drive customers to competitors who offer more suitable options, leading to cart abandonment.
Elevating Delivery Options in Your Business
Your business is unique; you are not a copy of Amazon, and it is more than likely that your customer base will recognise this. However, you must do everything possible to improve your customers’ experiences and meet their realistic expectations in terms of delivery.
You can begin to elevate delivery options in your business by:
Providing clear delivery timeframes: During the checkout process, offer precise delivery estimates for each shipping option. Use shipping calculators to consider variables like location and shipping method, providing accurate delivery information upfront
Offering a variety of shipping options: Customers should be able to choose from various shipping methods, each with its corresponding delivery timeframe. This empowers customers to select the best option for their needs and preferences.
Communicating and offering tracking: Proactive communication and shipment tracking keep customers informed about their order status. Updating order processing, shipping, and delivery helps build trust and reduce uncertainty.
Offering varied delivery cost options: Provide customers with choices in delivery costs, including standard, expedited, or premium shipping, to accommodate different needs and budgets.
Remaining open to feedback and developing trends and competitor offerings are incredibly important in this process. By staying connected with your customers and keeping an eye on what's happening in the industry, you can adapt and grow to better meet their needs, leading to reduced cart abandonment.
Streamline the Checkout Process
Account creation can be a significant benefit for both your customers and your business. It gives customers access to exclusive rewards and personalised offers and allows you, as a business owner, to better understand and serve your customers throughout the checkout process.
However, for some of your customers, creating an account or dealing with multiple steps during checkout can be a major turn-off. Mandatory account creation or too many pop-ups can be particularly irritating.
The second most common reason for cart abandonment is being asked to create an account during checkout. There are various reasons why customers might hesitate, including:
They may be short on time
They might prefer a quicker process
Their devices could be running slowly
Sometimes, it's just a bit overwhelming
Not everyone wants to receive marketing emails
That's where offering a guest checkout option comes in handy. Customers can skip the account creation step for a faster purchase experience. When it comes to streamlining the checkout process, it's essential to strike a balance between convenience and necessity:
Minimise steps: Simplify the checkout process by reducing unnecessary form fields and making it quick and intuitive.
Autofill and save information: Implement features that automatically populate shipping and billing information for returning customers or offer the option to save their information for future purchases securely.
Enhance checkout design: A streamlined design can significantly reduce cart abandonment rates. For instance, simplifying the layout and minimising unnecessary steps can make the process more user-friendly and efficient.
Optimise for mobile: As more customers shop on their phones, ensure that the checkout process is optimised for mobile devices. This order fulfilment improvement will make a meaningful impact on potential customers.
Reducing friction in the checkout process can also make a big difference. You can add several features that will make it simpler for your consumer base to navigate checkout, allowing you to reduce cart abandonment rates. These include:
Save for later: Customers can save items in their cart for future purchases.
Progress indicator: Include a progress bar or indicator to show customers where they are in the checkout process, helping manage expectations and reduce anxiety.
Implementing these strategies can create a smoother and more efficient checkout experience for your customers, leading to higher conversion rates and increased customer satisfaction.
Implement Abandoned Cart Recovery Notifications and Discounts
Preventative measures don't always work for every case. While implementing strategies to reduce cart abandonment can show some success, many businesses stop there. However, to truly tackle this issue, an extra step is necessary.
When customers leave items in their online shopping carts without completing the purchase, cart abandonment notifications offer a second chance to reconnect with them. These notifications, whether through emails, push notifications, or SMS messages, act as gentle reminders, enabling them to become a part of the order fulfilment process again.
Data indicates that cart abandonment notifications play a crucial role in the eCommerce sales funnel, with push notifications proving 37% more effective than email for recovering abandoned carts.
Paired with cart abandonment notifications, discount codes incentivise customers to finalise their purchases. These codes provide exclusive discounts or offers, creating a sense of urgency and prompting action. Personalised messages and discount codes have been shown to engage customers at a 4–7x higher rate than generic communications.
Cart Recovery Implementation
Effective cart abandonment campaigns rely on segmentation and personalisation. Segmenting the audience based on shopping behaviour and preferences allows tailored messages and offers that resonate with specific customer segments. Automation ensures the timely delivery of reminders while experimenting with various discount offers to help identify the most compelling incentives for conversion.
Remember:
Timing is key: Send abandonment notifications promptly after the event to maintain relevance and urgency.
Create urgency: Use scarcity tactics and time-limited discount codes to motivate immediate action.
Test and iterate: Continuously experiment with different messaging strategies and discount offers to optimise your campaigns.
Monitor performance: Track open and conversion rate metrics to gauge effectiveness and make data-driven decisions.
Remember, simplicity is key for cart abandonment notifications. A straightforward message like 'Looks like you forgot something in your cart. Complete your order now and enjoy 20% off with code CART20', can be highly effective.
By incorporating cart abandonment notifications and discount codes into your
eCommerce strategy and following these best practices, you can effectively reduce cart abandonment rates and maximise sales opportunities.
Order Fulfilment and Cart Abandonment: Final Thoughts
Reducing cart abandonment requires prioritising the customer journey and improving order fulfilment offerings. By preventing abandoned carts, you can create a seamless shopping experience that minimises lost sales and maximises revenue potential.
Investing in these strategies demonstrates your commitment to meeting customer needs and building lasting relationships.
By continuously refining your approach based on feedback and data insights, your business can develop a loyal customer base and achieve long-term success in the competitive eCommerce market. Once you actively seek ways to reduce cart abandonment, you have taken the first step to increasing orders.
Transforming eCommerce with Advanced Order Fulfilment Strategies
At Core, we prioritise customer satisfaction as the foundation of our services. As a leading 3PL provider, we excel in catering to businesses of all sizes and reputations across diverse industries. Our dedicated team is experienced in working with various sectors, ensuring that your specific needs are met precisely and carefully.
Reach out to us today to discover how our tailored solutions can support your eCommerce business, regardless of its size or industry.