How Much is Online Shopping Cart Abandonment Costing You?

shopping cart abandonment for online businesses

Did you know – you could be losing 2 out of every 3 online sales opportunities?

Studies consistently show that over 66 percent of online shoppers abandon shopping carts during checkout. Just 1 in 3 online shoppers complete the checkout process and this results in a significant amount of lost revenue for online businesses. Fortunately, there are many ways you can reduce shopping cart abandonment. Below are 5 tips to get you started:

1. Avoid Unexpected Price Increases

No one appreciates a price increase, especially after a purchase decision is made using a lower price. Whenever price depends on buyer choices, such as choosing a size or other options, try showing a price range and then display a specific price after necessary options have been selected.

2. Eliminate or Reduce Shipping Costs

Everyone realizes there is a cost associated with having their online purchases delivered, but online shoppers become disappointed when shipping costs become a large portion of the total checkout price. Consider offering one standard option for free delivery and several discounted “premium” options that subtract your cost for standard shipping — even if you need to increase prices to compensate.

3. Match Direct Competitor’s Pricing

The Internet is a big place to shop, and while shoppers can technically shop anywhere they want, this doesn’t mean every online business worldwide is your direct competitor. Identify those few competitors that are most likely to be found by price shoppers and make sure your pricing is similar. Even if your product is genuinely unique, online shoppers might be able to find lower-cost alternatives at other online stores that they could then substitute for your item.

4. Improve Online Shopping Experiences

If you are like most online businesses, you invest a lot of time, effort and money into maintaining your online store. It is important to control costs related to credit card processing, online shopping carts and website management, but every field, button and step during the checkout process creates an opportunity for shoppers to leave. As a result, a 1-step checkout is ideal.

5. Provide Detailed Shipping Information

Your business understands the details and limitations related to shipping, but few online shoppers will be as well-informed. Assume nothing and provide lots of shipping information to online shoppers. Anticipate shipping-related questions and proactively share information such as estimated delivery dates and how to track the status of package deliveries. Deliver an FAQ after checkout with every order.

While there are some things beyond your ability to directly control — such as website visitors that never intended to buy, buyers who find a lower online price elsewhere, and shoppers who decide now is not the right time to purchase — implementing these five tips can lead to more online shoppers completing their orders and significantly grow revenue for your business.

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Sunnyvale, CA 94085-4207

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800-576-3279

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