Shopping cart abandonment is where a customer adds products to their shopping cart to start the checkout process, but leaves the website before completing a purchase.
And store owners are facing this major issue of cart abandonment in their online business.
To give you a brief idea, take a quick look at some shopping cart abandonment statistics to understand just how serious this problem is.
- 55% of online shoppers abandon their carts due to extra costs that are too high
- 26% of people abandon their carts due to prolonged checkout times
- The average shopping cart abandonment rate across all industries is almost 70%
- More than 40% of all cart abandonment emails are opened
- Companies can increase their ROI by 1,300% by using personalized retargeted ads.
In this blog, we are going to learn about what shopping cart abandonment is, how to calculate it, what factors influence customers to abandon their cart, and how to minimize cart abandonment in Magento 2 store.
What is Shopping Cart Abandonment & How to Calculate
Shopping cart abandonment is an eCommerce term used when a customer ditches their shopping cart in the middle of their checkout process and leaves the website without making the purchase.
If the product is added to the shopping cart but does not make it through the checkout stage, then it is considered “abandoned.”
Suppose a customer visits your Magento store and browse the products on the website. While browsing, he likes the product so much that he starts adding them to the shopping cart.
Once products are added, customers move to the checkout process after filling in the normal details. But then the worst thing happens, they just close the tab and leave the website.
This is called the cart has been abandoned and now products are waiting for the visitor to complete the checkout.
A higher shopping cart abandonment rate showcases that your checkout process has some issues.
Thus, retailers should pay close attention to this because it is considered one of the most important ecommerce KPIs.
So if you want to regain lost revenue potential and also want to improve your conversions, it’s imperative to track this metric.
Want to calculate the shopping cart abandonment rate?
Here’s the easiest way to determine the cart abandonment rate of your eCommerce store:
Shopping cart abandonment formula:
It is the percentage of shopping carts that didn’t convert. Get your shopping cart abandonment rate over a specific period of time.
What Factors Influence Customers to Abandon their Online Shopping Carts?
Being online store owners, we all know that it is difficult to make sure that convert online visitors to potential customers.
A lot of buyers add products to their shopping cart, but only a few of them make the payment and complete the checkout process.
Below are a few of the reasons that can influence these online buyers to abandon their shopping carts:
1. High Prices & Shipping Costs
Buyers who frequently purchase products online don’t mind comparing the prices of different products on various online stores to get the best offers available.
So try to offer coupon codes and exclusive discounts to convert such customers so that your product becomes the best deal in town!
At times, the cost of shipping is more than the cost of the product the customer wishes to purchase. That’s why they abandon the shopping cart.
So to attract more customers and to increase conversions, offer free deliveries, and if you cannot afford 100% free delivery, then you can offer delivery promos.
2. Lack of Trust
49% of people abandon carts because of a lack of trust in online stores. A few of the reasons behind this are poor interface, fewer product details, no trust badges on the website, poor reviews, an unsecured site with no SSL certificate, etc.
Ensure that your web pages are user-friendly, showcase a strong brand image at all times, display a clear set of policies, add trust badges to reduce the shopping cart abandonment rate in Magento 2 stores, and improve conversions.
3. Complexity
As an online merchant, you are aware of the thing that the attention span of online customers is short, and during that time if it is a bit of complexity they will abandon your checkout process in no time at all.
To ensure that no bug costs you and your sale, you need to review your checkout process consistently and monitor your analytics. A comprehensive checkout process not only saves the time of online buyers, but also results in higher conversions.
4. Lack of Payment Solutions
Frequent online buyers always prefer to have their mode of payments. They will bounce away if your Magento store doesn’t offer their preferred mode of payment or payment gateway. You can solve this by offering all that standard and popular payment gateways like Stripe, PayPal, Cash on Delivery, Wallets, Amex, etc.
5. Lack of Transparency
One of the key concerns for many shoppers is a lack of transparency, which can directly affect your shopping cart abandonment rate.
Avoid tacking on hidden charges or fees at the last checkout step, as that could encourage your shoppers to abandon their shopping carts altogether. So make sure you display all charges in the cart only.
Top Ways to Reduce the Shopping Cart Abandonment for Magento 2 Store
If you want to reduce the shopping cart abandonment in Magento 2 stores, there are a number of ways to do so.
Here are 8 different methods that are highly effective for reducing shopping cart abandonment.
- Offer Free Shipping
- You can mention the free shipping charges on your product pages
- You can also send out an abandoned cart email only to those customers who have abandoned your cart.
- Provide Options For Guest Checkout
- Offer Multiple Payment Options
- Use Progress Indicator On The Checkout Page
- Effortless Navigation
- Loyalty Programs, Discount Coupon, and Gift Attractions:
- Customer Experience
- Track Abandonment Cart And Create Email Reminders
One of the most popular and effective methods of reducing shopping cart abandonment is to offer free shipping.
Most people abandon their carts because they find an additional shipping fee to be added to their carts when they reach the end of the checkout process.
There are times when customers find that the shipping charges are more than the product cost itself.
So just think about it, why would a smart online buyer order from that online store? In such case:
You should be transparent about what customers have to do if they want to avail a free shipping offer on your store.
So if your online store has a defined policy for shipping, make sure you present it clearly on your website.
Most of the customers, especially first-timers and those who want a one-time purchase, will never bother to create an account on your e-commerce store. Thus, you can offer to checkout as a guest user instead of creating an account.
This will directly speed up your checkout process, improve your store sales, and reduce cart abandonment rates. And if you want to collect some contact details or e-mail ID, you may ask them to save their checkout details.
Nowadays, offering only a single payment option or just a few choices will not be acceptable by customers.
They are prefers , so many different payment methods like debit cards, credit cards, UPI, digital wallets like Google Pay, net banking, etc.
Not offering preferred payment solutions may result in an increase in shopping cart abandonment rates. Thus, offering choices for the popular payment options will ensure that your customers are not leaving your website.
So it’s a good practice to provide a mix of a few payment solutions because it is one of the excellent moves to reduce shopping cart abandonment.
The most popular payment solutions include Amazon Pay, Google Pay, PayPal, Apple Pay, Stripe, etc.
One of the most common reasons for online shopping cart abandonment is not knowing how far along a user is in the checkout journey.
But being an online merchant, you can eventually drive more sales by removing such reasons for abandoned carts.
To solve this problem, you can use a progress indicator on the checkout page for customers to display how much further they have to go to complete the transaction.
They will get encouraged for the purchase if they know how much effort they have already invested based on the progress indicator status. Progress indicators are designed to improve the quality of the checkout process, and it also helps to reduce shopping cart abandonment.
Customers always looking for easy and effortless navigation where they just find the product they want to buy and quickly checkout without wasting much time.
So with the help of a responsive navigation menu, the customer can easily find the different categories, filter the required products by using categories. The website will look more informative and attractive using this module.
And if customers easily get the accurate search product or related suggestion whenever they are looking for the product, then it will help to decrease the bounce rate of your store.
You can also add the Quick View feature to your website. From a quick view, a buyer can easily view the product details without loading a webpage and also add the product to the cart, review product from or select product quantity from quick view pop up only.
This will not only reduce the number of clicks, but also reduces the customers' time.
In general, shoppers always purchase products from a website that provides them more benefits than others.
Such situations demand offering loyalty points, reference awards, free gifts, and discount coupons to your customers. This may attract their interests and increase sales for the business.
Every business needs new customers, but the key point is how to retain your existing customers. For this, merchants can create discounts offers and coupon codes for their products and send those to their customers.
Also, provide loyalty reward points to your customers on purchases to attract those who abandon the cart and leave the website without purchasing. This way, customers can save money and the seller will be benefitted by reducing the number of abandoned carts.
Offering a great customer experience is another important thing that merchants should take care of.
For this, trust is one of the key factors between buyer and seller in the e-commerce industry.
If your website has positive reviews & feedback from customers, then there will be an increase in your product sales because other customers see those reviews and build trust for your brand.
One more very important factor for any business is customer satisfaction, and you can improve customer satisfaction by adding an RMA (return merchandise authorization) service to your online eCommerce store for the product.
For any eCommerce store, RMA is an essential feature as it provides the freedom to the customer to exchange and return the purchased products.
A good return policy will give customers peace of mind while purchasing products online from your e-commerce store.
So, it is essential for you to create transparency between you and the customer to gain a loyal customer base and maintain your sales frequency.
It’s difficult to track the customers who add a product to the shopping cart but leaves the website due to any reason without making a purchase. But, the admin can view the list of all abandoned cart customers using the Abandoned Cart Email Reminder module.
Using this module, the admin can even send them a follow-up email to invite them back and complete the checkout process. For the success of your store, writing impactful abandonment emails is very critical. And to recover the abandoned carts, sending abandonment emails is one of the most important steps.
Wrap Up
For Online Merchants, shopping cart abandonment is a crucial issue and if you are an online store owner then you must not neglect it at any cost.
It has the power to break or make your online eCommerce business. So you must ensure that the shopping cart abandonment rate of your Magento 2 store is as low as possible.
With the above-mentioned tips, you can easily reduce your abandonment rate and attract your online visitors to become potential customers for your business.
Always remember, abandoned carts don’t mean that you have lost your sale because you can retarget your lost customer via email marketing.
Invite them back to your online store and encourage them to complete their left-out purchase.
If you are struggling to drive traffic to your online Magneto 2 store, let us help.
