Abandoning of the shopping carts is a very common phenomenon in e-commerce stores. It generally happens when the customer adds products to their cart but leaves them unattended before completing the checkout process. It significantly reduces the sales and revenue generation of e-commerce stores. There is ongoing search into how to reduce e-commerce abandonment rate and lure the customers into an efficient buying.
This will require to first research on why does abandonment happens. Some say that it is because the customers get busy or distracted or maybe the final purchase rate is very pricy for them. This kind of marginal situations can be predicted, however, if there is anything about your website that turns the customers off, and then you might want to know about it. You can know about the factors contributing to the abandonment rate after diving deep into the website data. You can then make changes into the targeted data and hope for better results. After all, the basic aim of all the e-commerce websites is to make revenue.
How Can You Calculate the Abandonment Rate on an eCommerce Website?
The abandonment rate of any e-commerce website is expressed in terms of its ratio. This ratio has its numerator as the number of people who prepared shopping carts on your website and in turn completed their transactions. The denominator is the number of people who created the shopping carts but never completed their transactions. After proper comparison, you will get a bigger picture of how many people add items into the shopping cart and how many of them actually complete their transactions.
If the abandonment ratio is high, means that you are selling products that might not interest customers or doesn’t attract them quite well. It decreases the popularity of your services on the online platform as well.
A low abandonment rate means that the users are having a great user experience on your website. They like your products and their costing. Your website is easily navigating and the checkout process is also comfortable and doesn’t create quite a havoc for the customers.
What is the Cart Abandonment Rate Formula?
According to research, in 2018, the average shopping cart abandonment rate is 78.65% which was 77% in 2017. With high shopping cart abandonment rates, it can be said, the websites in India are not able to engage the customers into much of a lively experience. The websites need to improve their content and quality and maybe work out on pricing as well.
Calculating cart abandonment percentage is easy after you know the cart abandonment rate ratio. All you have to do is divide the number of completed transactions by the total number of shopping carts having at least one item in them. Multiply this by 100 in order to get a percentage. A lot of facts about your website are revealed one you have the cart abandonment ratio with yourself.
Factors That Contribute to Cart Abandonment Process
If the cart abandonment ratio is high, then it is important that you find a reason for it. The following factors might give you a gist of what influences the customers before checkout.
On the checkout, the customers might discover some unexpected fees that turn them off. It is generally because the total amount has increased to a considerable amount.
The customers know what total cost they have to pay at checkout. If your website doesn’t reveal the shipping charges, taxes and other fees then they might not feel like buying stuff from your website.
Some customers do not want to create an account for certain reasons. If you force them to create an account, then they might just abandon their cart.
A lengthy or confusing checkout is also a reason why people don’t really feel overwhelming to buy stuff from the website.
Website timeouts are very frustrating for customers. They might not even land at your website after one such occurrence, so it’s better that you indulge in a good web hosting platform.
The unsatisfying return policy is also one of the reasons.
There is no paying alternative. Some people might not like to enter the ban details online and so you should use payment services like Paytm or any other.
The delivery time is very high. The maximum no of days customers can wait is for five days. If the delivery time exceeds than that, there are chances that the shopping cart will be abandoned.
How to Effectively Reduce the eCommerce Shopping Cart Abandonment?
All you need to do is win customer satisfaction and support and provide them with deals that amaze them in buying stuff from your website. The following ways might help you in reducing the e-commerce abandonment rate.
You need to build trust with your customers and engage them in good user experience on your website. They should feel secure while sharing details on your website. Also, it is very important that you reward your loyal customers with discounts, coupons and many more. This will improve the relationship you have with them.
The checkout process should be such that all sorts of customers can be benefited from it. Include card options, cash on delivery, and other third-party payment services.
Make your website mobile optimized. 90% of the sales happen on mobiles, so if your website is not suited for it, then it might lose on essential customers. Make your website mobile friendly and make it as responsive as it can be.
Always go for live chat. There are many things that a customer wants to check before buying. Now waiting to write an email is a tedious process. Instead place options like live chat that can make them ask questions about the product easily, without wasting more of the time.
Offer your customers with discount coupons and other sorts of incentives. O with loyalty rewards for your loyal customers so that they feel satisfied with your services.
Engage the customers in more of an upsell event. Deals and good discounts might make them add more items to the cart and that is more unlikely to be disregarded by the customers. This will help you to increase your revenue per customer and also reduce the shopping cart abandonment rate.
Incorporate an exit-intent popup in your application. Whenever a customer is about to leave a page, this popup detects it and it then pops up with a message to make them stay at the page and shop some merchandise.
Always keep the cart visible for the customers. May people who abandon their cart actually want to access it later. So incorporate a small shopping cart logo with all their items to be bought in the future.
Allow guest checkouts. Many people do not want to create an account and instead want to access the products and go for checkout. Adding all your information and then wasting that time, is not even profitable for your business. Instead, go for accounts are optional and let the guests browse through it.
Go for security badges for you online payments portals. This makes the customers trust your brand and services and they will feel more secure in adding the details of their cards.
Go for scarcity as well. Some customers need an urgency message that can motivate them into buying stuff from the website. Go for displaying last units left, or the sale ends in timer.
Always go for free shipping. Many-a-times it happens that the shipping charges are more than the product MRP. Go for free shipping over only a minimal purchasing amount and remove the handling charges.
Go for multiple payment options for an effective checkout process. Include options like cash on delivery, third-party payment options, credit card options, debit card options or website wallet adding money option.
Make the checkout process really fast. The customers need not check through the five pages of payment and instead just ad details on the next page and complete the checkout process.
Eliminate all types of surprises. Do not make the customers baffled with the shipping charges, taxes, and other handling costs.
Recover all your lost sales with a better website and application management process. Hope the shared information would be helpful to you. so, what are you waiting for? Go ahead and practice them.