A high abandoned cart rate is always an arduous challenge for every online store nowadays. Many of them have poured a huge amount of time and effort in order to ensure that their customers will make purchases after creating a shopping cart with a fast check-out experience.
By understanding what makes customers leave eCommerce stores without buying any products, retailers may find better solutions to this issue.
Overview
What is the abandoned cart rate?
The Shopping Cart Abandonment Rate refers to the percentage of online shoppers who add products to a virtual shopping cart but abandon it before making a purchase. Also, this figure showcases the rate of interested potential customers leaving without finishing any transaction compared to the total number of shopping carts produced.
How to calculate the abandoned cart rate?
The common method to calculate the abandoned cart rate is dividing the total number of transactions by the total number of shopping carts created then multiplying by 100.
Total number of completed transactionsTotal number of shopping cart created100
Why should businesses calculate the abandoned cart rate?
The shopping cart abandon rate is always considered a crucial factor for every eCommerce store to keep track of their sales process. If retailers report a high abandoned cart rate, they may face problems in terms of customer experience or broken sales funnel.
In March 2020, the Statistic pointed out that 88.05% of online orders were abandoned, which is a considerably high portion. Hence, it is necessary that online store owners should soon find a way to reduce this number. But first, they must understand why customers abandon their carts after adding pieces. Following are the top 5 reasons people leave their shopping carts:
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Reasons for high abandoned cart rate
High additional costs
When customers add an item to their cart, they may be confused by different prices and reconsider their purchase. They are less likely to continue if they see the additional fees.
Complicated process
One of the most common reasons customers abandon payment is that the checkout process is long and complicated. Some additional steps or requirements may make it more difficult for the user to complete payment. Meanwhile, customers always expect a quick and easy method.
Limited payment options
Customers, nowadays, are provided with an array of payment gateways and they are more likely to leave if there are only a few options available on the online stores. In other words, online buyers may leave without finishing any transaction if they cannot purchase by using the payment method they prefer.
Lack of trust
Online buyers may feel uncomfortable when being required to provide their personal information. Hence, eCommerce stores should build up their customer trust not only on the checkout page but also throughout their website.
Inadequate return policy
Return policy is another aspect that modern online buyers always pay attention to. An inadequate return policy may discourage customers from making purchases. Instead, they will look for other options to make sure that they will get the best products.
Lastly
A High abandoned cart rate can negatively affect your business performance and cost you a huge amount of revenue. Therefore, in order to thrive in the recent market, retailers must timely identify possible methods or adopt modern innovations to optimize the sales process and reduce their shopping abandonment rate.
Our solution – ConnectPOS – is an outstanding innovation that supports thousands of retailers worldwide to streamline their online business. If you are interested in this excellent solution, don’t hesitate to contact us today!