Shopping cart abandonment is a major and growing issue facing ecommerce businesses. It occurs when a customer places items in their online shopping cart, but then leaves the store without completing the purchase. The goal of this article is to explain what shopping cart abandonment is and convince you that it is a significant problem that online retailers cannot afford to ignore.
Shopping cart abandonment defines the situation where a customer adds products to their cart but then exits without going through checkout to pay. This results in a lost sale for the ecommerce business. Cart abandonment is an ongoing challenge that causes online merchants to miss out on billions in potential revenue every year. As we’ll explore, abandonment rates are high and the impacts of losing those customers and sales can be substantial. Understanding the root causes of abandonment and stats on its prevalence will demonstrate why resolving this issue is critical for any retailer with an online store.
Statistics on Cart Abandonment Rates
75% of online shopping carts are being abandoned by shoppers during the checkout process. When customers load products into their carts but then leave before completing the purchase, it’s referred to as the shopping cart abandonment rate. This rate has become alarmingly high in the ecommerce industry. According to industry research, 75% of carts are now being abandoned, resulting in major lost sales for online businesses.
Cart abandonment is also responsible for merchants losing $4 trillion in revenue every year. This staggering figure comes from companies having to repeatedly absorb the costs of acquiring customers who ultimately don’t convert. It’s an immense amount of wasted money and missed revenue opportunities.
Shopping carts are often abandoned right near the end of the checkout process. Most consumers browse for products, add them to their cart, but then abandon at the very last step. Retailers must identify the causes behind this trend of high abandonment rates in order to find solutions and recover large amounts of lost revenue.
Reasons Customers Abandon Carts
According to research, the top reasons customers abandon shopping carts include extra costs being higher than expected, needing to research the product more before purchasing, and simply not being ready to complete the purchase. However, there are several other major factors that lead shoppers to ditch their carts:
- Unexpected shipping costs – Many customers will happily fill their carts, but upon seeing the shipping estimates at checkout will decide the extra costs are too high and not worth it. Surprise shipping fees can lead customers to lose trust in the retailer as well.
- Complicated checkout process – Lengthy, confusing checkout experiences will cause customers to bail out of frustration. Too many steps or a difficult user interface on mobile can prevent cart completion.
- Lack of payment options – If customers can’t pay with their preferred payment method like PayPal or Apple Pay, they may abandon the purchase. Not offering enough flexible payment options turns customers away.
- No guest checkout – Requiring shoppers to create an account to complete the transaction adds extra friction and drives many to quit. Allowing guest checkout removes this roadblock.
- No mobile optimization – If the shopping experience doesn’t translate well to mobile, customers will hit roadblocks trying to complete orders on smartphones. Unoptimized mobile checkout equals higher abandonment.
- Security concerns – Shoppers abandoning due to security concerns indicates a lack of trust in the website. Addressing vulnerabilities and demonstrating security measures can ease uncertainty.
- Lack of urgency – Without any incentive compelling them to complete the purchase now, customers often delay and end up not returning. Creating urgency improves follow through.
Understanding exactly why customers abandon carts is key to reversing the trend and recovering lost sales. Ecommerce businesses must optimize based on these insights around shipping, checkout, payment, mobile experience, security, and urgency to turn more shoppers into paying customers. Tackling the top reasons head on will lead to higher conversion rates.
The Major Impacts of Cart Abandonment
Cart abandonment has wide-ranging detrimental effects on ecommerce businesses. Two of the biggest impacts are lost revenue and increased customer acquisition costs.
When customers abandon filled shopping carts, businesses lose out on sales they were close to closing. If a shopper goes through the process of adding items to their cart but doesn’t complete checkout, that product revenue never materializes. With cart abandonment rates hovering around 75%, this lost revenue adds up quickly. By some estimates, it costs companies over $4 trillion annually.
In addition to losing direct sales, high abandonment also drives up customer acquisition costs. Ecommerce sites have to spend more on advertising and marketing to attract shoppers to make up for those who bail out during checkout. The resources invested inBringing in website traffic and getting shoppers to add items to their cart are wasted if those prospects don’t convert.
On top of revenue and marketing challenges, cart abandonment wreaks havoc on analytics data. Key ecommerce metrics get skewed when carts are loaded but purchases aren’t completed. Conversion rates, average order value, and other KPIs don’t reflect actual buyer behavior. This makes it difficult for businesses to accurately evaluate their performance.
Overall, extremely high abandonment percentages represent a major threat to sales, revenue, and the health of ecommerce businesses. It’s a growing problem that online stores cannot afford to ignore. Smart merchants will take proactive steps to understand why carts are abandoned and implement strategies to capture lost revenue.
Recover Abandoned Cart Revenue with Proven Techniques
Cart abandonment may seem like an inevitable struggle for ecommerce businesses, but there are proven methods you can use to reduce your abandonment rates and recover lost revenue. Don’t leave money on the table – take action now to retain customers, increase conversion rates, and boost your bottom line.
Learn more about implementing customized cart abandonment emails, flexible payment options, loyalty programs, and other research-backed techniques to recapture abandoned cart sales. With the right strategy, you can turn abandoned carts into completed purchases and watch your revenue grow. Don’t let customers walk away at checkout – give them incentives to follow through on their initial purchase intent. Contact us today to discuss how we can help you address cart abandonment and retain more customers.