What is abandoned cart recovery?
According to research, over 69.57% of online shopping carts are abandoned. Think about that. For every 100 potential customers, 70 of them will leave without purchasing. How much would your revenues increase if you were capturing those sales instead of losing them?
Let’s look at a quick example. If you’re currently making $15,000/mo in online revenue and could turn just 25% of those abandoned orders into sales, you’d make an extra $45,000 each year. Abandoned carts can be fixed, but you need to understand why shopping carts are being forgotten.
Cart abandonment causes online businesses a great deal of pain.
As a business owner selling online, it is important for you to understand how many of your shoppers are abandoning their carts and what are the reasons why they are not completing their purchase.
If your ecommerce website is using the Shopify platform, then you need to be using their very successful abandoned cart reminder feature. Shopify’s abandoned cart feature sends email reminders to those who have not completed their purchases.
This makes it possible for you to increase your conversion rate as more people tend to complete the purchase once they are reminded.
Make sure you have the abandoned cart email reminders set up on your store to improve completed sales on your website.
Why do people abandon their online shopping carts?
Extra Costs are too high – Extra costs—including shipping, taxes, and extra fees—aren’t always made obvious to a customer. When they head to their online cart and see those fees added on top of each product price, it causes 49% of cart abandoners to exit.
Account is required – First-time customers to your online store want a fast, friction-free checkout experience. That doesn’t happen when they’re being asked to create an account.
Checkout takes too long – Time-consuming fields, like your birthday and phone number, aren’t essential to buying an item online. For some shoppers, it’s frustrating to have to give all of that information for a single purchase—which is why almost a quarter (24%) of cart abandonment happens because the site asked them to create an account.
Unclear pricing – High shipping costs are a leading cause of cart abandonment. In a similar vein, many (17%) of shoppers abandon their cart because they couldn’t calculate the total order cost up-front. Customers can be subject to extra fees when buying online, especially when they’re purchasing from another country. Import taxes and currency conversions all play a role in determining whether it’s worth buying from an online retailer.
Don’t trust the site – With sensitive information—like credit card numbers and home addresses—being submitted through an online checkout, it’s no wonder why modern-day shoppers are concerned about their privacy when shopping online.
Some 17% of people abandon their online shopping carts because they didn’t trust the site with their credit card information.
Installing an SSL certificate, highlighting customer testimonials, and showcasing warranties all help to combat this.
How to combat cart abandonment and recoup lost sales
1. Use a trustworthy ecommerce platform
2. Accept alternative payment options
3. Offer free (or discounted) delivery
4. Highlight your returns policy
5. Retarget cart abandoners elsewhere online
6. Optimize abandoned cart emails
7. Offer one-click checkout