According to the Baymard Institute, almost 70% of online shopping carts are abandoned. This implies that out of 100 potential customers, about 70 leave the website without completing their purchase. How much extra revenue could your business generate if you could capture those lost sales?
This article offers solutions to help you do just that. Learn about statistics and practical tactics to assist e-commerce businesses in addressing, reducing, and recovering from the challenge of cart abandonment.
What is cart abandonment rate?
Cart abandonment rate gauges the percentage of online shoppers who add products to their shopping carts but leave the website without completing the purchase.
To calculate the shopping Cart Abandonment Rate, follow these steps:
- Determine the number of shopping carts created during a specific period.
- Identify the number of those carts that were abandoned without completing the purchase.
The abandonment rate calculation
For example, an e-commerce store had 1,000 shopping carts created in a month. Out of these, 300 were abandoned before the checkout was completed.
Shopping Cart Abandonment Rate = (300/1000) x 100 = 30%
In this scenario, 30% of the customers who added items to their carts did not complete the purchase. This could be due to various reasons, such as unexpected shipping costs, a complicated checkout process, or concerns about payment security.
Retailers can leverage this information to optimize their checkout process, address potential issues, improve conversion rates and overall revenue.
Key cart abandonment rate statistics
The average shopping cart abandonment rate, globally, is 69.39%
The cart abandonment rate ranges between 60% and 80%. Over the years, numerous studies have been carried out to estimate the average cart abandonment rate. Estimates have varied, with figures fluctuating between 55% and 84%.
According to Dynamic Yield, the cart abandonment rates show that 69.39% of online shoppers fail to reach the checkout stage. In other words, more than seven out of every ten shopping carts are abandoned before completing the purchase process.
80% of mobile users are more likely to abandon shopping carts
The average cart abandonment rate of mobile device users is significantly higher than that of desktop users. This distinction can be attributed to factors influencing the user experience. Desktop users often perceive online shopping as more streamlined, while mobile users encounter challenges like text readability and difficulty locating clickable elements during checkout.
The cart abandonment rate of Beauty & Personal Care ranks at 82.38%, while that of Consumer Goods is 41.55%
Cart abandonment rate varies depending on the type of product. Essential products have a higher likelihood of attracting completed purchases. For instance, Consumer Goods or Food & Beverage exhibit an abandonment rate of under 50%, whereas Beauty products surpass 80%.
Additionally, products with complex checkout pages tend to discourage customers from completing their purchases. This is exemplified by the Home and Furniture industry, with the average cart abandonment rate exceeding 70%.
After abandoning, 26% of customers buy the same item from another online retailer
Below are some research insights from Statista regarding the actions taken by UK shoppers after abandoning their carts:
What leads to consumers abandoning carts?
Not ready to purchase
Customers may use the shopping cart for product selection or price comparison, intending to revisit it later for a final decision. They might abandon the cart if they are still in the research phase or undecided about purchasing.
Extra costs or high shipping fee
Unexpected additional costs, such as taxes, fees, or high shipping charges at checkout, can lead to dissatisfaction and cart abandonment. Customers appreciate transparency in pricing, and any surprises during checkout can deter purchase completion.
Imagine a prospective customer scrolling through your website. They spot a product that catches their eye. After a few clicks, they decide to proceed to the checkout process, but instead, they are met with a prompt asking them to ‘Create an Account’.
Adding a step to collect emails and other contact information isn’t necessary. This can be a hassle for most new shoppers and disrupts the purchase cycle. You can gather this information after the purchasing process.
Complicated checkout processes
Extra steps and added form field makes it difficult for the customer to complete payment. People want a simple and easy process when they buy things online.
According to Forter, 50% of Americans express reduced purchasing inclination for online transactions exceeding 30 seconds during checkout. Check out the images below to see shoppers wait-time tolerance:
Lack of trust in the sites
Customers need to be assured that their personal and financial information is secure. A lack of trust in the website’s security features, such as SSL certificates and visible privacy policies, can lead to concerns about data safety, prompting users to abandon their carts.
Slow website loading
According to YOTTAA, 9 out of 10 (or 90%) shoppers would abandon a site if it takes too long to load, with 57% likely to purchase from a competitor instead, and 14% never return to your ecommerce site.
Unbounce’s research also shows that 81% of marketers are aware of the negative effect that a slow website has on conversions. This highlights the importance of promptly improving page speed to drive better results.
Limited payment options
Customers prefer the convenience of using their preferred payment method. Limiting the options can increase the likelihood of cart abandonment. If customers can’t complete the purchase with their desired payment option after adding items to the cart, they may leave.
Six practical ways to recover cart abandonment
1. Implement abandoned cart emails
According to Moosend, abandoned cart emails have a 45% open rate. This means that one in five recipients of a cart abandonment email click on it, and 11% of them purchase as a result.
Utilize automated abandoned cart email campaigns to reconnect with customers who left items in their carts. Through abandoned cart emails, you can:
- Create compelling messages reminding customers of the items and encouraging them to purchase.
- Offer incentives or limited-time promotions that can effectively persuade customers to return.
2. Make checking-out seamless
Baymard Institute proved that a better checkout flow and design could result in a 35.26% increase in conversion rate, which translates to $260 billion worth of lost orders.
Do you want to make your checkout process seamless, quick, and easy? Here are some ways to optimize your page for faster checkout:
- Implement a one-click system that enables customers to purchase your product with just a few clicks.
- Streamline the process with a guest checkout option, eliminating customers’ need to create an account or enter extensive details.
- Display progress indicators at the bottom of the page to provide customers with a clear understanding of the remaining steps.
- Include product thumbnails on the checkout page, providing a visual reminder of chosen items.
3. Be transparent about costs
No customer likes to be surprised with unexpected charges right before they click on the “Buy” button.
If you aim to reduce your cart abandonment rate, clearly communicate all costs associated with the purchase up front, including product prices, shipping fees, and additional charges.
Moreover, you can show the overall amount saved, incorporating promo codes, special deals, and discounts during the checkout. This gives customers a sense of added value, motivating them to finalize their purchase.
4. Check your website performance
Slow-loading pages or technical glitches can contribute to cart abandonment. Therefore, you need to optimize your website’s performance regularly.
You can do this by checking your page loading time. If the loading time is excessive, examine your checkout page and streamline the steps required for customers. Ensure your website is responsive, functions well across devices, and provides a smooth browsing and shopping experience.
5. Offer free or discounted delivery
By incorporating free or discounted delivery into your cart abandonment recovery strategy, you address a key concern for many online shoppers, creating a more appealing and customer-friendly shopping experience. Here’s how to effectively implement this strategy:
- Set a threshold for free or discounted delivery (customers qualify for free shipping when their total order reaches a certain amount).
- Run time-sensitive promotions offering free or discounted delivery.
6. Allow payment flexibility
Some customers prefer credit cards, while others opt for digital wallets or other payment methods. By providing a range of payment options, you enhance purchasing convenience, thereby boosting conversion rates and fostering customer loyalty.
Several payment methods can be added to your checkout page in addition to credit and debit cards:
- Digital wallets (Apple Pay, Samsung Pay, and Google Pay)
- Buy now, pay later (BNPL) services
- Cryptocurrencies (PayPal)
- Gift cards and e-gift cards
- Installment payments
Understanding the reasons behind cart abandonment and tailoring strategies to align with customer preferences and expectations is key to revenue increase. The tactics outlined in this article provide a comprehensive guide for effectively addressing and mitigating cart abandonment issues. You can use these strategies for your business and achieve success. Good luck!
*Reference: Baymard Institute, Dynamic Yield, YOTTAA, Forter, Statista, Moosend, Metrilo