Picture this: A potential customer browses your online store, carefully selects items, and adds them to their cart. You're on the brink of a sale, but then... silence.
The customer vanishes, leaving behind a full cart and an incomplete transaction. This scenario, known as shopping cart abandonment, is a silent pandemic costing businesses billions.
According to research by Baymard Institute, as many as 70% of all online store users abandon their Shopping Carts. This translates to a staggering $18 billion in lost revenue for the eCommerce industry each year, as reported by Forrester.
Comprehending why shoppers abandon their carts is crucial for any eCommerce business aiming to improve its conversion rates. While some abandonments are unavoidable—with 48% of online shoppers admitting to "just browsing"—many others can be addressed through strategic improvements.
In this blog, we'll delve into the most common reasons why shoppers abandon their carts and provide actionable insights on how to tackle these issues.
What Is Cart Abandonment?
Cart abandonment in eCommerce refers to the situation where a customer adds items to their online shopping cart but exits without completing the purchase.
This phenomenon impacts the conversion rate as potential sales are lost at the final steps of the purchasing process. Understanding the reasons behind cart abandonment is crucial for businesses to optimize their checkout experiences and increase sales.
Why It Is Important To Know The Causes Of Cart Abandonment
Understanding the reasons behind cart abandonment is more than just an academic exercise—it's a crucial step in optimizing your eCommerce business.
Here's why diving deep into these causes is essential:
- Improve Conversion Rates: By identifying the friction points in your checkout process, you can make targeted improvements that directly boost your conversion rates. Even small increases can lead to significant revenue gains.
- Enhance User Experience: Many abandonment causes stem from poor user experience. Addressing these issues not only reduces abandonment but also improves overall customer satisfaction, potentially leading to repeat business and positive word-of-mouth.
- Optimize Marketing ROI: You've invested time and money to bring customers to your site. Understanding abandonment helps ensure that investment doesn't go to waste at the final hurdle, maximizing your marketing ROI.
- Gain Competitive Edge: In the crowded eCommerce space, providing a smooth, user-friendly checkout process can set you apart from competitors who haven't addressed these issues.
- Recover Lost Revenue: With cart abandonment costing the eCommerce industry billions annually, tackling this issue head-on can reclaim a significant portion of lost revenue for your business.
- Identify Technical Issues: Sometimes, abandonment is caused by technical glitches. Recognizing these allows you to fix problems that might otherwise go unnoticed.
By understanding and addressing the causes of cart abandonment, you're unlocking the full potential of your eCommerce business.
It's an investment that pays dividends in increased sales, improved customer loyalty, and a stronger competitive position in the market.
Top 11 Reasons Why Cart Abandonment Occurs (And Actionable Tactics to Tackle It)
While every customer's journey is unique, research has identified several common factors that contribute to cart abandonment. By understanding these reasons, you can take targeted action to address them and improve your conversion rates.
Let's dive into the most significant causes, starting with the number one culprit:
High Extra Costs (Shipping, Taxes, Fees)
Unexpected or high additional costs are the primary reason shoppers abandon their carts. According to the Baymard Institute, 48% of shoppers cite extra costs as their reason for abandonment.
Here's why this is such a significant issue:
- Lack of transparency: When customers see a price on a product page, they often assume that's the final cost. Discovering additional fees at checkout can feel like a "bait and switch" tactic, eroding trust. In fact, 21% of shoppers would leave your site if they couldn't see or calculate the total order cost up-front.
- Perceived value reduction: High shipping costs or additional fees can make customers feel like they're not getting good value for their money, even if the product itself is reasonably priced.
- Competitive disadvantage: Customers have options when buying online. They'll compare prices across sites, and if they find a better deal elsewhere, they'll abandon their cart with you and go for a better deal with your competitor.
Strategies to Address This
- Offer free shipping: This is perhaps the most effective solution. According to a ComScore report, 61% of shoppers are at least "somewhat likely" to cancel their entire purchase if free shipping isn't offered. Consider these strategies:
- Offer free shipping on the first order to acquire new customers.
- Set free shipping thresholds to encourage larger purchases.
- Build shipping costs into your product prices and offer "free shipping" as a selling point.
- Offer free shipping on the first order to acquire new customers.
- Be upfront about all costs: Display shipping costs and other fees as early as possible in the shopping process, ideally on the product page. Include taxes upfront and ensure all taxes are included in the product price.
- Provide shipping calculators: Allow customers to estimate shipping costs before reaching checkout by entering their zip code on the product or cart page.
- Optimize your shipping process: Compare all the shipping companies in your area and choose the most cost-effective provider to avoid high delivery fees. This can help you offer more competitive shipping rates.
- Offer competitive pricing: Be aware of how your competition prices their products and services. Use a price point that challenges your competitors. Remember, offering better service, shipping, and other perks can help you stand out even if your prices aren't the absolute lowest.
Customers hate surprises when it comes to pricing, so the more transparent and competitive you can be, the better your chances of securing the sale.
Forced Account Creation
Requiring customers to create an account before they can complete a purchase is a significant contributor to cart abandonment. Here's why this is a problem:
- Friction in the checkout process: According to Neil Patel, 23% of shoppers abandon their carts when forced to register. This additional step can be perceived as an unnecessary hurdle, especially for first-time or one-time shoppers.
- Privacy concerns: Some customers are hesitant to share personal information, particularly if they're not familiar with the brand or don't plan to make repeat purchases.
- Time consumption: Creating an account takes extra time, which can be frustrating for customers who want a quick and seamless checkout experience.
Strategies to Address This
- Offer guest checkout: Allow customers to complete their purchase without creating an account. This removes a significant barrier for many shoppers.
- Make account creation optional: Clearly present account creation as a choice, not a requirement. Highlight the benefits of creating an account (e.g., easier future purchases, order tracking) without making it mandatory.
- Simplify the registration process: If you do encourage account creation, keep it as simple as possible. Ask for only essential information and consider using social media login options for quicker sign-ups.
By addressing the issue of forced account creation, you can remove a significant barrier in your checkout process and potentially recover a substantial portion of otherwise lost sales.
Complex Checkout Process
Your checkout is the final sprint in the shopping marathon. Make it too long or convoluted, and shoppers will drop out before the finish line. In eCommerce, simplicity sells.
Here's why a complex checkout process is a critical issue:
- User frustration: According to a 2022 Baynard Study, the average checkout process contains 14.8 form fields. This complexity can be overwhelming and frustrating for customers, leading to abandonment.
- Increased drop-off rate: A study found that 17% of shoppers abandon their carts due to a complicated checkout experience. This represents a significant portion of potential sales lost due to process complexity.
- Limited payment options: 9% of customers will leave your store if you don't offer their preferred payment method, adding another layer of complexity to the checkout process.
Strategies to Address This
- Streamline your checkout: Aim to reduce the number of steps and form fields in your checkout process. Consider if you can simplify the process further for your specific business needs.
- Implement a progress indicator: Show customers where they are in the checkout process and how many steps remain. This can reduce uncertainty and keep customers engaged.
- Use autofill and smart defaults: Leverage browser autofill capabilities and implement smart defaults (like country based on IP address) to reduce the amount of manual input required.
- Offer diverse payment options: Include a variety of payment methods to cater to different customer preferences. This could include credit cards, PayPal, Apple Pay, Google Pay, and other popular options in your target markets.
- Enable guest checkout: As mentioned earlier, allowing customers to check out without creating an account can significantly simplify the process for first-time buyers.
Concerns About Payment Security
In the digital age, trust is your most valuable currency. When customers don't feel safe sharing their financial information, your conversion rates plummet.
Customers are increasingly wary about sharing their financial information online. Research shows that 25% of shoppers abandon their carts due to concerns about providing credit card information. This hesitation can significantly impact your conversion rates and overall sales performance.
Strategies to Address This
- Display security badges: Prominently showcase trusted security certifications (SSL, PCI DSS compliance) throughout your site, especially at checkout.
- Use trusted payment gateways: Partner with well-known, secure payment processors that customers recognize and trust.
- Offer alternative payment methods: Provide options like PayPal or Apple Pay, which don't require direct input of credit card information on your site.
- Communicate security measures: Briefly explain your security protocols during the checkout process. Knowledge builds trust.
- Conduct regular security audits: Perform and publicize regular security checks of your eCommerce platform to reassure customers of your ongoing commitment to their data safety.
By prioritizing and communicating your commitment to payment security, you can reclaim a significant portion of sales lost to security concerns and build lasting trust with your customers.
Inadequate Return Policies
In the world of eCommerce, your return policy is a powerful marketing tool and a critical factor in building customer trust. When shoppers can't physically examine products, a robust return policy becomes their insurance policy.
Studies show that 18% of shoppers abandon their carts due to unsatisfactory return policies. This hesitation is understandable, considering that in 2021, 16.6% of all US online sales (totaling $761 billion) were returned.
A restrictive or unclear return process can trigger anxiety at checkout and erode confidence in your store.
Strategies to Address This
- Extend your return window: Offer a generous 30, 60, or even 90-day return period. This not only gives customers confidence but can actually reduce return rates by removing the pressure to decide quickly.
- Simplify the process: Create a hassle-free return process. Consider including a return label with each shipment or offering easy-to-print labels online. The simpler it is, the more likely customers are to complete their purchase.
- Offer free returns: If possible, absorb the cost of return shipping. While this may seem expensive, it can significantly increase initial purchases and customer loyalty.
- Implement a try-before-you-buy option: For items like clothing or accessories, consider allowing customers to order multiple sizes or colors and only pay for what they keep. This can reduce hesitation at checkout.
- Leverage technology: Use AR or VR tools to help customers visualize products, potentially reducing returns and increasing confidence at checkout.
Limited Payment Options
Customers expect convenience when shopping online, and this extends to how they pay. Offering limited payment options can lead to lost sales and frustrated customers.
A study from PayPal reveals that 50% of shoppers who regularly use digital wallets abandon their carts if they don't see a familiar option at checkout. This highlights how crucial payment flexibility is in closing sales and reducing cart abandonment.
Strategies to Address This
- Diversify your payment options: Offer a range of payment methods including credit cards, debit cards, PayPal, Apple Pay, Google Pay, and other popular digital wallets.
- Consider local preferences: If you're selling internationally, research and implement popular payment methods in your target markets. For instance, iDEAL in the Netherlands or Alipay in China.
- Implement Buy Now, Pay Later (BNPL) services: Options like Klarna, Afterpay, or Affirm can help reduce sticker shock and increase conversions, especially for higher-priced items.
- Display payment options prominently: Showcase available payment methods early in the shopping process, not just at checkout. This can prevent last-minute surprises and abandonments.
- Keep security in mind: While offering multiple options, ensure all payment methods are secure and communicate this security to build trust.
Website Errors and Crashes
Technical issues can quickly derail a customer's shopping experience. When a website malfunctions or crashes during the checkout process, it not only leads to lost sales but can also damage your brand's reputation.
Research indicates that 17% of shoppers will abandon their cart if they encounter website errors or crashes. This significant percentage highlights the critical need for a smooth, error-free shopping experience.
Strategies to Address This
- Regular website maintenance: Conduct routine checks and updates to ensure your site runs smoothly. This includes testing all features, especially the checkout process.
- Optimize for high traffic: Ensure your website can handle traffic spikes, particularly during sales or promotional periods. Consider using content delivery networks (CDNs) to improve loading times.
- Create clear error messages: When issues do occur, provide clear, helpful error messages that guide users on what to do next.
- Offer alternative contact methods: In case of persistent issues, provide easy ways for customers to reach out, such as live chat or a prominently displayed customer service number.
- Regular load testing: Periodically test your site's ability to handle high volumes of traffic to identify potential weak points before they become issues.
Lack of Customer Support
Accessible and responsive customer support is crucial for online shoppers. When customers can't get immediate answers to their questions or concerns, they're more likely to abandon their purchase.
Studies show that 41% of customers expect live chat support on eCommerce sites. Furthermore, 83% of online shoppers need assistance to complete a purchase. These statistics underscore the importance of readily available customer support in reducing cart abandonment.
Strategies to Address This
- Implement live chat: Offer real-time support to address customer queries instantly. This can significantly reduce abandonment rates.
- Provide multiple contact options: Include phone, email, and social media channels to cater to different customer preferences.
- Create a comprehensive FAQ section: Address common questions and concerns to provide immediate answers without requiring direct contact.
- Use chatbots for 24/7 support: While not a replacement for human interaction, chatbots can handle basic queries and provide support outside of business hours.
- Monitor and improve response times: Set and maintain high standards for response times across all support channels.
Long Delivery Times
In an era of instant gratification, long delivery times can be a significant deterrent for online shoppers. Customers often expect quick delivery, and extended wait times can lead to cart abandonment.
Research shows that 22% of shoppers would abandon a purchase if shipping time is too long.
Additionally, 88% of customers say they'd be willing to pay more for same-day delivery, highlighting the value placed on quick shipping.
Strategies to Address This
- Offer multiple shipping options: Provide a range of delivery speeds, including express options for customers willing to pay for faster delivery.
- Implement real-time shipping calculations: Display accurate delivery dates during the checkout process to set clear expectations.
- Consider local fulfillment centers: If possible, use multiple warehouses or fulfillment centers to reduce shipping distances and times.
- Provide order tracking: Offer easy-to-use tracking tools to keep customers informed about their package's status.
- Consider same-day or next-day delivery: For local customers or high-demand products, explore faster delivery options.
Better Pricing from Other eCommerce Sites
Price comparison is a common practice among online shoppers, and competitive pricing can make or break a sale. The ease of online shopping allows customers to quickly check prices across multiple sites, leading to potential cart abandonment if they find a better deal elsewhere.
Research by Statista found that 26% of shoppers in the UK who abandon their carts will buy the exact same product from a competitor. This highlights the critical importance of competitive pricing and value proposition in eCommerce.
Strategies to Address This
- Monitor competitor pricing: Regularly check competitor prices and adjust yours accordingly to stay competitive.
- Implement price matching: Consider offering a price match guarantee to instill confidence in your pricing.
- Use dynamic pricing strategies: Implement algorithms that adjust prices based on demand, competitor pricing, and other market factors.
- Offer bundle deals: Create attractive product bundles that provide better value than buying items separately.
- Provide transparent pricing: Clearly display all costs, including shipping and taxes, early in the shopping process to avoid surprises at checkout.
Poor Mobile User Experience
With the majority of online shopping now happening on smartphones, a poor mobile experience can significantly impact your conversion rates and lead to cart abandonment.
According to Statista, 77% of online store visits come from smartphones, generating two-thirds of online orders globally. However, mobile users abandon their carts more frequently than desktop shoppers, with abandonment rates of 84% on mobile compared to 72% on desktop.
Strategies to Address This
- Prioritize mobile responsiveness: Ensure your website is fully responsive and provides a seamless experience across all devices, including smartphones and tablets.
- Optimize page load times: 53% of mobile users will leave a site if it takes more than 3 seconds to load. Use techniques like image optimization, minification of CSS and JavaScript, and leveraging browser caching to improve load times.
- Simplify the mobile checkout process: Reduce the number of steps and form fields in your mobile checkout. Consider implementing one-click purchasing or digital wallet options for returning customers.
- Implement mobile-friendly design elements: Use larger buttons, easy-to-read fonts, and finger-friendly navigation to improve the mobile user experience.
- Offer mobile-specific features: Implement features like pinch-to-zoom for product images and swipe gestures for easy navigation.
Conclusion
Cart abandonment is a multifaceted challenge that affects all eCommerce businesses, but it's far from insurmountable.
By understanding and addressing the key reasons we've explored—from unexpected costs to poor mobile experiences—you can significantly reduce abandonment rates and boost your conversion rates.
Each of these factors represents an opportunity to enhance your customer's shopping experience and build trust in your brand.
Whether it's offering transparent pricing, streamlining the checkout process, or optimizing for mobile users, each improvement contributes to a more robust and customer-centric eCommerce platform.
By focusing on these areas, you're not just reducing cart abandonment—you're laying the foundation for long-term eCommerce success.
Every improvement you make is a step towards higher conversion rates, increased customer satisfaction, and ultimately, a stronger, more profitable business. In the competitive world of online retail, these efforts can be the difference between thriving and merely surviving.