99.99% of online stores face the challenge of cart abandonment. Even Amazon and Alibaba have to face the brunt of cart abandonment. There is no escaping it. Cart abandonment to eCommerce is what window shopping to brick and mortar stores. No matter how hard you try and how hard you sell, there is no escaping cart abandonment.
In fact, the average cart abandonment rate is pegged to be around 78.65% in 2017. In other words, 78 out of 100 of your website visitors add products to shopping carts, but do not see the order to completion with payment.
Sounds tragic, right? All the effort of bringing users to your website is wasted if they don’t make a fruitful purchase. However, all hope is not lost. It is still possible to put a handbrake on your store’s cart abandonment.
Before tackling the menace, you must know how cart abandonment is calculated. This will make it easier to understand how it works and how you can better manage your store’s key metrics.
Calculating Cart Abandonment Rate
To calculate shopping cart abandonment rate for any period, you need the total number of purchases completed during the period and the total number of shopping cards creating during the period.
You can then apply the following formula to calculate the cart abandonment rate:
|Total number of completed purchases / Total number of shopping carts created * 100|
Numerator & denominator explained
Total number of completed purchases – Number of shopping carts that were checked out with at least item in them.
Total number of shopping carts created – Number of shopping carts that customers created by adding products to them. This include both orders that were completed or abandoned.
Tackling the menace – How to curb eCommerce cart abandonment rate
While cart abandonment remains a menace that every e-retailer has to put up with, there are ways to curb it and keep it control. Few such proven strategies are discussed as under:
- Don’t Give Nasty Surprises
The thing about online shoppers is that most of their purchases are impulse-driven. All they need is a second of an afterthought to rethink and cancel an order. Nasty surprises like additional handling charges, minimum order value, special delivery charges, etc. can make them switch thoughts and decide against making the purchase.
The problem with these nasty surprises is that they appear right at the checkout page where the possibility of cart abandonment is the highest. So, avoid giving any last-minute surprises that would make the customer rethink his/her buying decision.
- Simplify Checkout
Nobody likes playing the maze game on an online store, especially when they want to be done with order in the shortest time possible. So, the onus is upon you, the retailer to ensure that the checkout process is as simple as it could be.
Be smart enough to avoid all kinds of long forms that ask for repetitive information. Little gestures like auto filling the frequently used shipping information and delivery times will make the checkout process easier. If possible, set up one-page checkout process which will keep things easy and simple.
- Be Transparent with Shipping Costs
Either provide free shipping or be transparent about how shipping charges would be levied. Don’t leave any ambiguity in this matter. Shipping costs are the differentiating factor between online shopping and offline shopping.
If the costs are equal or more compared to offline shopping, your customers are definitely going to abandon your carts without much thinking. The key is to let them know how much you will be charging. Logistic players like Fedex, UPS, etc. do provide shipping cost calculators that can integrated into your website. Customers can calculate the shipping costs themselves to arrive at the final order value. Such transparency would definitely help curb cart abandonment.
- Show Security Seals
One of the most definite reasons why your customers could be chucking out from making a purchase could be fear of cybercrimes. It is common knowledge that eCommerce is one of the primary targets for cybercrimes. Naive customers can fall prey to the easy traps set by hackers. Those customers who are savvy enough to safeguard themselves look for obvious security measures like security seals and trust badges.
Security seals are provided by Certificate Authorities who usually issue SSL certificates. These security seals act as official emblems that drive home a message like original dealer, secured by a security agency, associated with a trade body and so on. These security seals have been proven to be instrumental in boosting conversion rates as well as suppressing cart abandonment rates. So,make sure your website is secure with SSL certificate.
In a nutshell
Cart abandonment is a menace that every retailer has to live with. There is no eliminating it, but, the situation can definitely be improved. You need to follow certain strategies that will tune your customers to look at things the right way. Further, as a retailer, you must also make changes at your end, like being transparent with pricing and additional charges. This will help keep te cart abandonment rates to a bare minimum.