Understanding "shopping cart abandonment" in e-commerce
Shopping cart abandonment is a serious problem for any e-commerce provider. It occurs when customers have initiated online shopping transactions by adding items to their virtual shopping cart, but abandon the transaction before completion. Ultimately, a high percentage of shopping cart abandonment indicates lost sales and untapped potential.
Why do customers abandon their shopping cart?
There are many reasons why customers abandon their shopping carts: unexpected shipping costs, better price elsewhere, overly complicated checkout process and more. Therefore, it is important to understand why customers abandon their shopping cart and work to close these sales gaps.
Use of web analytics for e-commerce to reduce shopping cart abandonment
One of the most effective ways to reduce shopping cart abandonment is to use web analytics for e-commerce. These tools allow companies to monitor customer interaction on their website and helps to obtain concrete data on when and why customers abandon their shopping cart. Using this data, companies can then develop strategies to reduce cart abandonment and thus increase sales success.
Strategies to reduce shopping cart abandonment
There are a number of strategies that companies can use to reduce shopping cart abandonment. Here are four that have been proven to work:
Simple and fast checkout processes
A common method of reducing shopping cart abandonment is to simplify the checkout process. For example, pre-filled forms, the option to shop as a guest and functions for saving payment and shipping information can be incorporated. The simpler and faster the process is, the fewer customers will abandon it.
Transparent shipping costs
Additional costs for shipping and taxes are the main reasons why customers abandon their shopping cart. If these costs are in the shopping cart, this often comes as a surprise to customers. It can be helpful to show these costs transparently and early in the ordering process - this way the customer is not surprised and is more likely to complete the purchase.
Retargeting is another strategy that can help to reduce shopping cart abandonment. This involves retargeting customers who have abandoned their shopping cart, usually through display advertising or email marketing, in order to persuade them to complete their purchase.
Secure and trustworthy website
A trustworthy website gives customers security and confidence. Security certificates, transparent data protection guidelines and customer reviews can help to signal this and reduce shopping cart abandonment.
Reduce shopping cart abandonment and thus improve the conversion rate
E-commerce businesses that are able to successfully reduce their cart abandonment rate will also improve their overall conversion rate. By understanding the reasons for cart abandonment and implementing strategies to address these issues, businesses can increase their profits and ultimately improve their online sales success.
Reducing shopping cart abandonment is an ongoing process, but requires constant adjustments and testing to ensure ongoing online shopping optimization. However, by using web analytics for e-commerce and targeted strategies, the conversion rate can be improved and thus increase sales.