Shopping cart abandonment means lost revenue. And to a greater extent than you might initially expect. In the UK alone, e-commerce stores lose a total of £18 billion every year due to abandoned shopping carts.
But how much revenue can be regained with a solid concept against shopping cart abandonment? According to calculations by the Baynard Institute, 69.99% of purchases are abandoned . This offers enormous profit potential: if just a third of these lost customers can be persuaded to make a purchase, a 23% increase in revenue is possible. With a monthly turnover of €10,000, that's €27,600 more per year!
Contents
Types of Abandonment?
Causes of Cart Abandonment?
Top-notch Cart Abandonment Measures
How to Reduce Cart Abandonment
How to Prevent Cart Abandonment
THE MOST COMMON TYPES OF ABORTION THAT EVERYONE SHOULD KNOW
WHAT IS AN ABANDONED CART?
Abandoned shopping carts occur when an online shopper adds items to their cart but ultimately does not purchase them - a common and frustrating problem for e-commerce stores. A well-designed marketing strategy can help reduce the occurrence of abandoned shopping carts.
WHAT IS A ABORTED SEARCH?
An abandoned search occurs when a potential customer looks at products but leaves the online store before adding items to the shopping cart or purchasing them.
It is possible to define triggers for abandoned searches in order to identify visitors with purchase intent. A trigger can be set for a specific interval: for example, if a visitor has spent ten minutes on the website or has viewed several products from the same range.
Targeting abandoned carts is a valuable part of any marketing strategy, but it may not seem as effective as a campaign to reduce abandoned carts because visitors may not be ready to buy yet.
WHAT IS A CHECKOUT CANCELLATION?
Abandonment occurs when an online shopper fills their shopping cart and begins the checkout process, but leaves the site before making a purchase. A customer who clicks the "Checkout" button is undoubtedly interested in making a purchase, and there's a good chance that an avoidable problem prevented the visitor from completing the order.
The triggers for this are often complicated checkout pages, unexpected costs or forced registration. To avoid checkout abandonment, the ordering process should be as convenient and simple as possible. Adding time-saving features such as automatic form filling, well-placed shortcuts and various payment options helps to maintain the impulse to buy.
WHAT ARE THE MAIN CAUSES OF PURCHASE ANCHORATIONS?
There are many factors that influence cart abandonment, so it's important to find out the specific causes and thus increase the conversion rate. For example, customers may see unexpected shipping costs, there are no BNPL payment options like Klarna , items in the cart are out of stock, there is no guest checkout - and much more. The best way to india phone number data identify the website's problems is to collect and analyze first-party data - always in compliance with GDPR. With solid metrics, it is possible to get a clear overview of the customer journey and, by analyzing abandonment, determine where and why customers lose interest. Based on this, changes can be made to improve the customer experience and promote sales.
Let’s take a look at the key factors that influence abandoned shopping carts.
PRICE CHECK
“With the entire web at our fingertips, price comparison is now very easy for shoppers, so competitive pricing is extremely important to reduce cart abandonment. But there's a problem: lowering prices isn't easy, especially if you're running an e-commerce store with low profit margins.
For some companies, reduced prices often mean less profit. But events like the COVID-19 pandemic and the inflation crisis have shrunk consumer budgets and put pressure on brands to cut prices, so it's important to find a middle ground. Careful cost analysis will help determine whether price cuts are beneficial for the company and customers. The most likely culprits are the products with the highest cart abandonment rates, so product prices should be directly compared to competitors' prices. If products are too expensive in comparison, it's important to test whether more sales at a lower price will bring more profit than fewer sales at a higher price.
Let's say you normally sell a product for €100 to 50 customers each month at a profit of €20, while 150 people (75%) abandon their cart. According to our calculations, this brings you a profit of €1,000. If you match your competitors and sell the item for €95, the abandonment rate drops to 60%, so 80 customers buy the item at a profit of €15, which amounts to €1,200 per month. In this case, a lower price and a lower cart abandonment rate lead to 20% more profit.
Another critical part of pricing considerations is the cost at checkout. Research from the Baynard Institute found that 48% of customers abandon checkout pages because of unexpected charges, such as high shipping costs.