Online shopping has become an integral part of our lives, and with the COVID-19 pandemic, it has become more popular than ever. E-commerce sales for 2020 reached $4.28 trillion globally, with the United States accounting for $861B. Yet, despite these impressive numbers, there's a hidden demon that plagues the online shopping industry - Shopping Cart Abandonment. According to Baymard Institute, the average cart abandonment rate in 2020 was around 69.80%, which means that most of the visitors leaving the cart without purchasing. If you're an online store owner, you're not alone if you're grappling with cart abandonment.
Key Takeaways
- Online shopping has greatly increased globally and in the U.S., yet cart abandonment remains high at around 70% on average according to a 2020 study.
- Unexpected costs like shipping fees lead many shoppers to abandon carts. Over 50% do so due to high shipping costs.
- Complicated or slow checkout processes frustrate customers and result in abandonment.
- Lack of payment security concerns causes 17% to abandon over fear of compromised information.
- Optimizing websites and streamlining checkout can reduce abandonment and boost sales. Cart recovery significantly improves conversion rates and profits.
Why Do Shoppers Abandon Their Carts?
There can be multiple reasons why shoppers abandon their carts. One major reason can be the high shipping cost or unexpected fees. Baymard Institute found that over 50% of shoppers abandon their carts due to high shipping costs. Another reason could be because of the slow loading of the website or complicated checkout processes. The lengthy or complicated checkout process can also be frustrating for customers, resulting in cart abandonment.
Consequences of High Cart Abandonment
High cart abandonment can lead to lower conversion rates, which, in turn, can result in lower profits for the online store owner. In addition, abandoned cart emails are an effective way to win back potential customers. Industry analysts suggest that nearly half of abandoned cart emails are opened, and one-third of users who opened the abandoned cart email purchased.
Key Insights and Statistics
- Unexpected Costs as a Primary Culprit
Studies consistently show that unexpected costs, such as high shipping fees or unexpected taxes, are a leading cause of cart abandonment.
According to a survey by Baymard Institute, 55% of respondents abandoned their carts due to extra costs revealed during the checkout process.
- User Experience Matters
A seamless and user-friendly checkout process is crucial. Research indicates that a complicated or lengthy checkout process can contribute to abandonment.
Statista reports that 21% of respondents abandon their carts if the checkout process is too long or complicated.
- Mobile Shopping Challenges
With the rise of mobile commerce, it's essential to address challenges specific to mobile users. A study by Statista found that 56% of respondents abandoned their carts on mobile devices due to technical issues or difficulty navigating the site.
- Cart Abandonment Emails Work
Implementing a cart abandonment email strategy can be highly effective. According to SaleCycle, nearly 50% of cart abandonment emails are opened, and about one-third of clicks lead to a purchase.
- Building Trust through Security
Trust is a key factor in online transactions. A lack of trust in the security of personal information can lead to cart abandonment.
A survey by Baymard Institute found that 17% of respondents abandoned their carts due to concerns about payment security.
Conclusion
Shopping cart abandonment is a significant challenge for eCommerce businesses, and understanding why and when it happens is critical to mitigating the issue. By optimizing your website, offering efficient checkout processes, and providing incentives like free delivery, online store owners can reduce cart abandonment. Ultimately, a business that can address the issue of shopping cart abandonment will increase its conversion rate, improve customer loyalty, and generate higher revenue.
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