AMZ Seller Financing • April 22, 2019
As an e-commerce store owner, you may have noticed that a great number of your potential buyers abandons their carts without making a purchase. You have even tried to make a few tweaks which didn’t work.
As a result, you may be feeling that high abandoned cart rate is just an inevitable part of owning an e-commerce site. Or, even worse, that there’s something wrong about the products that you offer or that you are not cut out for business.
In actuality, high abandoned cart rate isn’t rare. Studies indicate that an average of 69% of shoppers add products to their shopping carts but exit the store without making a purchase. That means that only as little as 3 out of 10 customers actually go through with their purchase.
The good news is that it doesn’t have to be this way. With some changes to the way you operate your store and the buying process, you can reduce the abandoned cart rate and increase your sales.
However, first, let’s take a look at why people abandon their carts.
10 Reasons why Buyers Abandon their Online Shopping Carts
There are multiple reasons why shoppers abandon their carts. According to studies by the Baynard Institute and Statista, below are some of the most common ones.
1. High Shipping Costs and Additional Fees
Most buyers get discouraged when e-commerce stores charge high shipping rates or require other fees that may significantly raise the total price of their purchase. These may include taxes, handling fees, etc.
2. The Need to Create an Account
Some online stores such an H&M allow their customers to create an account as well as shop with a guest account that does not require an account. Many shoppers get discouraged when they do not have an option of purchasing without registering.
3. Lengthy and Complicated Checkout Process
Another reason why buyers abandon their carts is when they need to go through a long and complicated checkout process. For instance, if your checkout process consists of numerous steps and/or requires your customers to repeatedly enter their information, such as their card information or shipping address, chances are that many will leave without completing their purchase.
4. Website Issues
If your e-commerce website crashes in the middle of the purchase, loads slowly, a discount code does not work, your products have low-quality images, or other website-related issues occur, the abandoned cart rate is likely to increase.
5. No Intention to Buy
Sometimes, there’s nothing to do with you or your store and shoppers simply have no intention to buy. Many customers can go to e-commerce stores simply because they are browsing and researching. They likely are comparing a few different options and adding products to the shopping cart is the easiest way of keeping track of things that they liked from your inventory.
6. No Straightforward Shipping Costs
A great number of shoppers get discouraged when they have a hard time calculating what the final shipping fees are. If customers cannot locate straightforward information on the amount they need to pay for shipping or hidden costs pop out of nowhere, this may be the reason why do not make it to the final step of the checkout.
7. Trust Issues
If customers cannot trust your store they aren’t likely to disclose their credit card information to you. Especially if you own an e-commerce store that isn’t widely known.
Some common issues that may prevent buyers from completing their purchase may be a lack of an SSL certificate, no security badges, or reviews. If your site does not come across as trustworthy, it’s likely that shoppers may consider it a scam.
Inaccuracies in the information on your site as well as a lack of recent updates can discourage shoppers as well.
8. Long Shipping Times
There is a reason why the popularity of Amazon Prime has skyrocketed only a few years after its launch. Shoppers want to receive their products fast. If your product takes several weeks to ship, which may be the case if you operate a dropshipping store with suppliers in Asia, your potential customers may choose another store over yours that can deliver their order faster.
9. Unsatisfactory Return Policy
Even if your e-commerce store is small, make sure that your customer service is top-notch. Take some time to develop a return policy that your potential customers can view as a safety net and can get their money back if they aren’t satisfied with their purchase.
You should always make sure that your products speak for themselves. High-quality products can result in your customers willing to return for more and drastically increase your profits. However, a satisfactory return policy can reinsure them and complete their purchase thus lowering your abandoned cart rate.
10. Not Enough Payment Methods
Last, but not least, if you only offer one or two payment options, this may be the reason why your abandoned cart rate is so high. Especially if it’s not properly optimized and their card gets declined.
Have you identified which of the reasons above may affect your abandoned cart rate? Then make sure to check out our post on ways you can optimize e-commerce checkout and boost your sales.
Feel free to check out the other articles on our blog as well as download our FREE ebook on how you can fund your e-commerce business. Follow us on Facebook, Twitter, and LinkedIn, and subscribe to our mailing list to get the latest news and offers!