Marketing places a high emphasis on consumer engagement and consumer base expansion. However, an engaged consumer is not always guaranteed to buy. Shopping cart abandonment is one of the major problems for retailers to overcome. Retailers should be extra careful of this issue because a high abandonment rate leads to poor user experience or a broken sales funnel.Reduced shopping cart abandonment increases the volume of sales and revenue, so improving checkout flow should be the key area of focus for online businesses.
What is Shopping Cart Abandonment?
The phenomenon of a customer simply deciding to leave an e-commerce transaction has come to be referred to as shopping cart abandonment. Any item that is added to the shopping cart by the shopper but exit without completing the purchase is called an abandoned shopping cart.
The percentage of abandoned carts ranges anywhere from 50% to 80%. Here are more surprising shopping cart abandonment statistics from a ReadyCloud report.
- It’s costing a lot of money: Abandonment costs e-marketers about 2 to 4 trillion per year. Given the large economic impact, shopping cart abandonment solutions are becoming a priority for e-commerce marketers.
- It will get worse: Experts agree that shopping cart abandonment is on the rise.
- Evenings are the worst: Studies show that abandonment is most common between 6 and 9 pm.
- Most leave due to extra costs: 61% reported leaving a transaction due to an extra cost such as shipping fees.
- Forced accounts are a problem: 35% of transactions were dropped because the website required the user to create an account before checkout.
- Complications lose carts: 27% of carts were dropped because the checkout process was too complex or because the site was slow.
- Slow is a no-go: A slow website can increase abandonment by 75%, and loyalty drops 50% when your site is slow.
- No one likes high shipping rates: 55% of consumers leave a transaction when presented with an extra shipping cost.
- Security is key: Most people like to feel safe, especially given the myriad of risks on the internet. In fact, 35% of individuals will abandon a site if it does not appear to have a security badge.
- Return difficulties: E-commerce brings a level of complication to the returns process. However, some return policies can make things even more complicated. Unfortunately, complex returns are not popular with shoppers. 80% of shoppers will not make a purchase unless there is a hassle-free return policy.
- Cost is a major issue: 25% of shoppers abandon a cart because the item or the total cost is too much.
- Abandonment affects conversions: Cart abandonment can leave a major gap in conversions. For instance, a 65% cart abandonment trend leaves a 97.9% gap in conversions.
- Some shoppers aren’t really shopping: Nearly 40% of surveyed consumers responded that they abandoned their shopping cart because they had been just browsing in the first place.
Abandonment by Sector (Smart Insights, 2017):
- Finance abandonment is the worst: Finance is one of the most fluid market sectors, but it also suffers from an 83.6% cart abandonment rate.
- Charity abandonment: After finance, abandonments within the non-profit sector are the highest at 83.1%.
- Travel is often abandoned: Statistics show that travel carts are abandoned 81.7% of the time, which is the highest abandonment rate after finance and non-profit sectors.
- The retail sector is at high risk: 72.8% of abandoned carts occur in retail.
- Fashion can get rough: While not as bad when compared to other market sectors, fashion e-commerce carts see a 68.3% abandonment rate.
- Gaming is actually safest: Gaming sees an abandonment rate of 64.2%.
Around the World
- The global cart abandonment rate is 75.52%.
- Asia and the Pacific Islands have the top abandonment rates: APAC countries, including Japan, have the highest rate of cart abandonment at 76.3%.
- Next is the Middle East: Middle Eastern countries fall just behind APAC with an abandonment rate of 76.1%.
- Latin America has the third highest cart abandonment rates: Latin America has a cart abandonment rate of 75.3%, which is the third highest after APAC and the Middle East.
- 74% of North American shoppers abandon their carts: The U.S. and Canada have some of the lowest cart abandonment numbers.
- Europeans have the lowest rate of cart abandonment: European e-commerce sites have a 70.9% rate, which is actually the lowest in the world.
By Device (Barilliance, 2018):
- Cell phones: Mobile shopping carts are the most likely to be abandoned, with an 85.65% ditch rate.
- Tablets: Tablet users have an abandonment rate of 80.74%, only slightly lower than those experienced on cell phones.
- Desktops are most reliable: About 73% of desktop customers abandon their carts. While the number seems high, it is still considerably lower when compared to mobile and table transaction averages.
About Abandonment Recovery:
- Emails may be opened: About 45% of emails sent to follow up on an abandoned cart are opened by consumers.
- Some follow up emails bring customers back to the site: 21% of the opened follow-up emails are clicked on.
- Emails help conversion: 10.7% of individuals that receive emails return to make a purchase.
How to Reduce Shopping Cart Abandonment?
Your potential customers abandon their shopping carts for many different reasons, addressing those issues at an early stage results in reduced shopping cart abandonment.
Let’s delve into the tips on reducing shopping cart abandonment across your site.
Use Exit-Intent Popups
Using exit-intent popups is the best strategy for online retailers to reduce shopping cart abandonment. It helps you grab your customers’ attention by offering them a coupon code or promotional discount the moment they make up their mind to leave their shopping carts.
Giving such exciting offers at that critical stage when your customers are indecisive motivates them to complete the transaction, which results in reduced abandoned shopping carts. This strategy also converts window shoppers into regular customers.
Users do not like to spend much time while going through the checkout process; they abandon the cart when they find it complicated or time-consuming. You should focus on making navigation between a shopping cart and your store as easy as possible to reduce complications during the checkout process.
Optimizing the checkout experience for your users will motivate them to buy more products from your store.
Lack of Multiple Payment Options
Customers pay only when their preferred payment option is available on the website or app. Consumers like to have more payment options than before for paying for their online shopping. More payment options eliminate the risk of shopping cart abandonment and increase your sales and profits. You should design a checkout page that does not create any obstacles between your customers and sales; it should offer a seamless shopping experience.
High Shipping Costs
One of the biggest reasons for the abandoned shopping cart is shipping charges, followed by discount coupons that do not work and taxes at the end of the checkout process. You can avoid losing your customers by offering free shipping without any tax. With no surprise fee, your customers won’t hesitate to load their cart and complete their purchase.
Shopping Cart Abandonment Statistics for 2020
Statista data shows that 88.05 percent of online orders were abandoned in March 2020. Out of all the categories, automotive witnesses the highest cart abandonment rate with 96.88 percent.
Retail suffered from an 84.51% cart abandonment rate whereas it is 79.95% for the travel industry. The abandonment rate is as low as 67.92% for insurance and as high as 96.88% for automotive.
When compared to other sectors, the cart abandonment rate for fashion is at 90.68%, which is on par with airlines at 90.91%.
With high rates of abandonment, e-commerce cart retention should be a priority.