this is a guest post from Jessica Kane of Rakuten Super Logistics
E-commerce is a multi-billion dollar industry. There is a great amount of competition among online retailers to gain the sales of customers. Believe it or not, many customers visit sites and ‘window shop’ just as they would in a traditional bricks and mortar store. They browse the site and put items into a virtual shopping cart. Only to abandon the cart and never return to complete the purchase.
In fact, shopping cart abandonment is a common occurrence. It has been reported that there is a 67 percent shopping cart abandonment rate across e-commerce sites. These high rates often frustrate e-commerce site owners. They often wonder what can be done to close the deals. Here are 5 ways to effectively deal with shopping cart abandonment.
- Be direct about the prices, hidden fees and shipping rates. E-commerce customers are just as price conscious as other shoppers. They will not spend more money for an item than it is worth. Many times a customer is presented with additional fees that were not originally disclosed. As a result, they abandon the shopping cart because the price is not favorable. Online retailers can solve this problem by being open about the true cost of the purchase before items are put into the shopping cart.
- Offer free shipping and various shipping options. Shipping prices play a major part in the decision-making process of e-commerce customers. If shipping prices are high and options are limited, customers may abandon the shopping cart in favor of a better deal. Online retailers should do everything in their power to make the shipping process as customer-friendly as possible.
- Provide exclusive deals for shopping online. Customers like rewards and getting special prices. Online retailers should create attractive offers that make it difficult to abandon appealing deals. Exclusive offers can include buy one get one free, percentage discounts and accrual of shopping points for each purchase.
- Simplify the check-out process. E-commerce customers want their transactions handled with the click of a button. Complicated check-out pages cause customers frustration. Frustration makes customers think about whether the product is worth the hassle. Allow customers to provide just enough information to successfully complete the transaction. Don’t allow customers to get bogged down by complicated registration pages and surveys.
- Present customers with multiple payment options. E-commerce needs to be flexible and appeal to the purchasing power of various customers. This means they should allow customers to use major credit cards, bank cards and third-party payment companies such as Square and Paypal. Limiting the types of payments limits the amount of money that can be made.
Each year, 18 billion dollars is collectively lost by e-commerce sites due to shopping cart abandonment. Lost revenue does not have to be a reality for most e-commerce sites if they put policies in place that convince customers to follow through on the purchase. Applying these simple and inexpensive strategies can decrease shopping cart abandonment rates and increase e-commerce sales and revenue.
Jessica Kane is a professional blogger who has worked in eCommerce for the last five years. She currently writes for Rakuten Super Logistics and recommends them for all your online order fulfillment needs to further your success.