In the insight “SCA and its effect on shopping cart abandonment” where we talked about Strong Customer Authentication, SCA compliance and SCA exemption, we answered the question: Why is shopping cart abandonment a problem for retailers and what are the effects of shopping cart abandonment? In this article we will dive in the top reasons for cart abandonment and solutions on how to get back the customers who dropped off at the checkout stage.
According to different researches done worldwide, the most common reasons are:
These four reasons are also the top reasons for high shopping cart abandonment rate reported in the UK in 2019 in fashion industry, even though in Q2 2020 it was reported in the UK that approximately a third of online shoppers that account for abandoned carts due to various reasons still comes back to purchase from the same website, while 26% proceed to purchase from competitors, but the overall cart abandonment rate experienced a YoY increase, according to Royal Mail’s survey “Delivery Matters UK” in 2019 and 2020.
The primary worldwide reason for abandoned carts is the same as the one reported in the UK’s fashion industry – delivery cost is higher than anticipated¹ (41% of the respondents), another main reason is again the initial intention was different from purchasing, such as price benchmarking (29%). The other top reasons for abandoned digital carts worth mentioning, because 18%-29% of respondents reported them as primary in the same survey, are the following:
The last two reasons are a testimony to an ever-increasing need in a frictionless transaction among customers.
In 2021, after the pandemic started, in the USA, in particular, additional reasons for abandoned carts were identified, according to Baymard Institute²:
It is evident that many of the reasons identified above in the UK, US and worldwide cause distrust in potential customers, and in order to reduce digital shopping cart abandonment effects, the trust needs to be gained by tackling most problems presented, such as trustworthy user-friendly website, transparent prices at the checkout, better delivery conditions, credit card payment SCA compliance, and use of SCA exemptions to give customers a frictionless transaction. As well as many payment methods as possible, for this you might want to consider integrating Payment Orchestraᵀᴹ into your business.
Since we already explained in the insight on SCA in detail digital shopping cart abandonment effects on business and now customers’ reasons and motivations, let’s get to the answer to the question: how to reduce cart abandonment? There are many shopping cart abandonment solutions and ways to recover the abandoned carts, we will discuss 4 of them.
The real challenge in how to reduce cart abandonment lies in identifying the ideal mix of initiatives for your website and adoption of solutions that can contribute to higher conversion rate, lower shopping cart abandonment rate and improvement of the customer shopping experience.
Marketing mix in your company plays a huge role in the shopping cart abandonment rate, in particular, through e-mail communications and retargeting through display advertising. These are among the most important activities to optimise in order to reduce a users’ drop-off. The process of sending e-mails to potential customers who have not completed the purchase, so called "lead nurturing", is intended to encourage the completion of the purchase. Collection of customers’ e-mail addresses with promotional consent given during some point of the Customer Journey is essential for planning the e-mail communications that are sent out manually or automatically. They should contain a clear CTA (Call to Action), goal-focused message, and when possible be personal, for which you would need a demographic or psychographic data to create an effective personalized and targeted communication to each Persona. You can also attach content or products of interest, that redirect back to the website, based on the abandoned card.
The graphic aspect and the text content of an Ecommerce can make a difference to abandonment rates, not only those of the digital shopping cart but also of the other sections of the website. The cart represents the pre-purchase stage (immediately preceding that of payment), therefore, it is a delicate moment in the purchase process. Here are some steps to take to make the product details page more effective:
As with the rest of the website, the user experience must be at an excellent level, even for any last-minute changes such as deleting or adding items, or with real-time updating of product availability. If we use a real-life analogy with the offline world, the shopping cart corresponds to the queue in front of the cashier of a physical store: the smaller the queue, the greater the probability that the customer purchases and returns. Same goes for the digital shopping carts, the stronger the friction, the smaller the possibility of the customer to return, therefore, the customer is likelier to return if they had a frictionless payment experience.
Those who arrive at the payment page have passed the shopping cart stage to arrive at the final moment of the purchase: payment. Here is what you should consider at this stage:
All of the factors above are essential elements in reducing the likelihood of shopping cart abandonment and also contribute to customer loyalty.
In this article we have seen how to transform the abandoned cart into a sales opportunity, not only improving the conversion rate but also contributing to cross and up-selling thanks to various shopping cart abandonment solutions. In conclusion, it is good to remember that there is no formula applicable to all Ecommerce websites: the real challenge to overcome, when it comes to reducing shopping cart abandonment rate, is to find the right path and solutions integration for your online store, bearing in mind that any result can be improved by testing and adopting new solutions.
UPS Pulse of the Online Shopper™ Report, 2019
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