Recently, we posted information on consumer’s biggest pet peeves when it comes to online shopping. Some of these pet peeves are things that consumers can power through. Others can be a huge roadblock to online consumers completing the sale. New data has been released that gives more information on why consumers abandon their online shopping carts.
● Nearly 60% of consumers have abandoned their carts because shipping costs were higher than expected
● Approximately 55% were either not ready to purchase and wanted to compare prices or wanted to save the cart for purchase at a later time
● Half of consumers indicated they abandoned because the order did not meet the minimum requirement for free shipping
● Nearly 40% said that the shipping and handling costs were listed too late in the checkout process
● Almost 30% believed that shipping time was too long for the amount they had to pay or they didn’t want to create an account just to purchase something
● One in four said their preferred method of payment was not accepted by the retailer or they were going to check out but were distracted and forgot about it
● Over 20% thought that the checkout process was too confusing or that the shipping options did not meet the timeframe for when they needed the item
● One in five decided to buy the item in-store
● Other major reasons given were the lack of a guaranteed / estimated delivery date, users couldn’t remember their password or the return policy was unclear
What This Means To You
Think of all the time, effort and money that went into your site.
First you had to build it, then you had to promote it. You marketing tactics drove the traffic to your site and a consumer went through the process of shopping your brand and selecting merchandise – then all that time, effort and money disappears. The consumer abandons their cart.
There are a couple of major themes that strike through in why consumers do not completing the sale. Shipping costs, site design and brand processes are the big culprits.
Free shipping, as we’ve state many times before, is the offer that draws consumers to a certain site. It’s also the top reason why consumers choose one brand over another. If you cannot give customers free or discounted shipping, make sure your shipping policies are easily read and clear. When a consumer goes through the process of making a purchase only to get hit with shipping he or she finds exorbitant; it leaves a bad taste in their mouth and are unlikely to return.
When was the last time you tested your sites design with people unassociated with your brand – People who will give you an honest answer? If a consumer feels like your site is cumbersome not easy to navigate consumers will likely leave and go to a competitor. Adding things like a “steps meter” can help them feel a little easier with checkout.
We all know that data can be the one thing that gives you a competitive edge in the future but many consumers are leery of giving their contact information.
If a customer is interested in buying an item and they don’t complete the sale with you, do you think they are just not going to buy it all? No they are likely going to search for it or something similar from a competitor of yours. Bad design or high shipping could be delivering sales to your main competition. Make sure that your site is more intuitive than the guy across the street, check your shipping vs theirs as well. Consumers flocked to online shopping because of the convenience. If your checkout process gets in the way of that convenience, shoppers will likely click away. For more information on effective and efficient ways you can build traffic to your online presence, please contact:
Sources: USPS: comScore; etailing group; eMarketer