Why e-commerce stores miss out on 75% of sales revenue
When people are shopping online they often put products in their cart but for some reason fail to check out. This is also known as cart abandonment. Studies have shown that almost 75% of online shoppers don’t complete their purchases.
There are various reasons for this but most are pretty easy to fix. Research has proven that most abandoned carts are due to unexpected costs at the end, such as shipping costs. Forcing people to create an account and asking for their personal information also has a discouraging effect.
How to deal with cart abandonment?
First off, you should realize that it’s not possible to convince every “cart abandoner” to buy what they have left in their cart. It’s possible that they never even had the intention to order, maybe they didn’t even mean to add a product to their cart. Those who were hesitant to go through with their purchase however, are the people you should be focussing your efforts on. By giving them extra reasons to buy in your webshop the threshold becomes smaller. Ultimately resulting in possible extra sales.
Actions to deal with cart abandonment can lead to sales boosted by 25%. Just imagine that you have a sales value of €20.000/month. Implementing actions to deal with abandonment could up your revenue by €5.000/month.
Prevention is better than cure. Simple adjustments to the webshop often lead to enormous boosts in sales.
First off, make sure that it’s clear to the customer what they are looking at. Add pictures of the products through the entire purchasing process. Give a small description and show reviews of buyers to go along with the pictures. This way, you reassure the customer that it’s the product they want.
Further on, make sure that the payment process is as simple as possible. Eliminate the excuse of not having the right payment option by offering various possibilities. Also, the option to purchase without asking the shopper to create an account encourages those who don’t feel comfortable sharing personal information. Sure, you would want contact information for further marketing techniques but boosted sales is not too bad either, is it?
The most common reason for cart abandonment is the extra cost at the end. By offering shipping or even a gift wrap for free, you create a feeling of comfort and your sales will go up. The customer has fewer reasons to think that it would be cheaper if they would buy the product in a physical store. If it’s not possible to give these options for free, then make this clear through the entire process to eliminate the surprise cost at the end. Transparency is much appreciated with the customer.
The shopper might still be in doubt because he has questions about your product/service. By making your contact information easily available you will also be able to convince them.
Takeaway: Make sure your webshop is as easily usable and as transparent as possible.
Precautionary actions didn’t convince the visitor? No worries, they are still potential customers. We have two more steps for you to win back the hesitant shopper.
When you aim your focus on customers previously interested in certain products that they did not end up buying. By showing them the same or similar products, a second thought can be given to their need.
Retargeted advertisements are also noticed three times out of four because people recognize the product. And almost 9% of the people actually revisit your website.
Abandoned cart email
This is a simple reminder you send to potential customers who didn’t complete their purchase. The intention of this kind of email is to create the same feeling of need for those specific products. This can be achieved by showing their cart with the product pictures, descriptions and even reviews by other customers. The difference is that people will feel like you’re making an extra effort to win them over as a customer. Which makes them feel good and that obviously has an impact on their buying decision. Don’t forget to read our tips about this specific kind of mail.
Takeaway: Reactive actions are to remind the customer of their need to buy certain products and convince them to buy those products in your shop.
There are a bunch of steps you could take to deal with cart abandonment which could lead to a revenue boost of 25%. However, you have to look at each step and find the right fit for your business. Copying tactics of other businesses doesn’t work for most brands because they have a different approach and different customer profiles. Some people like to get retargeted, some people will simply unsubscribe from your emails if you send them too many reminders.
- Cart abandonment: when shoppers put products in their shopping cart, but for some reason fail to check out
- Precautionary actions like various payment options to avoid abandonment
- Reactive actions like retargeting when cart abandonment remains an issue
- Adjust the actions to your business
→ Boost your sales up to 25%