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Why Shoppers Abandon Carts and How to Recover them?

March 27, 2023


Shopping cart abandonment is one of the most common and crucial problems in the eCommerce industry. Cart abandonment is a state in which an item is added to the cart for purchase but never proceeds to a transaction. Any online retailer would want to decrease the amount of cart abandonment as it leads to conversions and impacts revenue. According to a study by Baymard Institute, an average rate of cart abandonment is around 70% which indicates the number of missed transactions for an eCommerce website. Addressing shopping cart abandonment is an essential aspect of the online shopping process. The first step to address the issue is to understand the reasons behind cart abandonment which are many. The next step would be to find and implement ways that can lead to reducing cart abandonment.In this article, we sought to share some effective ways to reduce the cart abandonment rate in the eCommerce industry.

Reasons for cart abandonment

With growing competition in the eCommerce industry customers are swamped with choices and they are more selective which makes it easier to lose them. Some of the most common reasons for a shopping cart abandonment include high pricing, creating an account on their site, delayed delivery, and complicated checkout processes.For instance, when a customer goes through the checkout process and discovers that the order's total is higher than anticipated, there is a  pricing discrepancy. This typically occurs when the shopping cart only shows the items' base prices and a subtotal, excluding the additional fees for tax and shipping. This creates an ambiguity and they rethink purchasing, thereby leaving the site without completing the transaction. Creating transparency among the customers with clear pricing breakups, or offering free shipping is a good initiative for reducing cart abandonment.There are several such reasons for cart abandonment and it's much more than offering deals, and free shipping costs. eCommerce businesses should deep dive into the insights through their site analytics and find out what could be the reason that visitors leave without completing their shopping across the buyer's journey. A few of the reasons for cart abandonment during the checkout process are outlined in the image below.


Source: Baymard Institute

7 Ways to reduce shopping cart abandonment

Creating transparency in pricing

One of the most common reasons that shoppers leave the site without completing the transaction is the pricing discrepancies. As per the study by Baymard Institute, approx. 48% of abandoned carts are due to extra costs like shipping charges, taxes, etc. Customers are more likely to trust giving them a clear breakdown of pricing during the checkout process without any price spikes caused by shipping, taxes, or other factors.  This encourages them to complete the transaction at the intended price.

Allowing guest checkout options

Various studies have shown that visitors leave the shopping as they are forced to sign up and create an account on the site. Though it's critical for retailers to gather customer information to create their database, some shoppers do not intend to spend time doing registration or filling up basic details and thereby moving to other sites. Offering guest checkout options enables them to easily go ahead and complete the purchase. This option allows for avoiding additional efforts and storing any information of the visitors except the email address. It enables them to trust a brand after having hands-on the product and build loyalty to the brand along this process.

Shorten the delivery time

Consumers are becoming more and more demanding when it comes to delivery time. Many visitors fail to complete the order only because they expected a shorter delivery period. Now, when online retailers are offering one-day delivery or quicker delivery, consumers are apprehensive about businesses that offer extended delivery dates. Online retailers can focus on shortening the delivery time with better-managed order processing, outsourcing delivery, route optimization, and more.  Improving delivery time can have a positive impact on the business at various levels.

Offering recommendations during checkout

There are many visitors who are sceptical about their preferences and often end up leaving the cart. Product recommendations on the checkout page are an effective way to reduce cart abandonment as well as cross-selling. When a customer reaches the checkout page, they have already shown intent to make a purchase, and presenting relevant product recommendations can help to further guide their purchasing decision. These recommendations can be based on the items already in the customer's cart, their browsing history, or even matching products in the same category. By providing these recommendations, retailers can showcase their full product range and increase the likelihood of customers making additional purchases.

Demo of checkout-page-product-recommendation

Offering multiple payment options

Offering multiple payment options to customers is a great way to reduce the cart abandonment rate. Many customers abandon their carts when they find that their preferred payment method is not available. By providing a variety of payment options such as credit cards, debit cards, and other digital wallets, customers are more likely to complete their purchases. Additionally, offering payment plans or financing options like BNPL can also help customers make multiple orders. Providing multiple payment options not only improves the customer experience but also increases the likelihood of conversion and ultimately drives sales.

Follow-ups through marketing tools

Follow-up through marketing tools is an essential strategy for recovering abandoned carts in eCommerce. Cart abandonment happens when a customer adds items to their online shopping cart but leaves before completing the purchase. To recover these lost sales, retailers can use various marketing tools to follow up with customers who have abandoned their carts. Email campaigns, SMS messages, and push notifications are some of the most effective tools for cart recovery. By sending targeted messages to customers who have left items in their cart, online merchants can remind them of their intended purchase and offer incentives such as discounts or free shipping to encourage them to complete their orders. By sending timely and personalized follow-up emails or SMS, businesses can recover potentially lost sales and improve their conversion rates. With the help of these marketing tools, businesses can recover lost sales and improve their conversion rates.

Adding a progress bar on the checkout pages

A progress bar also known as a progress indicator is an effective technique to show the proportion of the process that is completed. When making purchases from eCommerce sites, customers typically prefer a rough idea of how long the process would take. Adding a progress bar on the checkout page provides a tentative timeline for the checkout completion. By offering a clear and easy-to-understand visual aid, online merchants can enhance customer experience and encourage them to complete their shopping. Moreover, a progress indicator can also help to identify any areas of the gap in the checkout process, enabling retailers to make necessary improvements and further optimize the checkout experience.


Final Thoughts

Reducing the cart abandonment rate is a critical challenge for the eCommerce industry. Employing effective strategies like optimizing the checkout page by adding progress indicators, product recommendations, and offering multiple payment options can go a long way in reducing the cart abandonment rate. There are several ways that merchants can consider based on their insights into site analytics and nail down the reasons for abandonment. At Tagalys, we facilitate eCommerce businesses through online visual merchandising and influence the conversion rate.   If you want to know more about our merchandising solutions, get in touch with us now.

FAQs on abandoned carts

1. What is checkout abandonment vs cart abandonment?

Checkout abandonment occurs when users start the checkout process but do not finish it. For example, by navigating away after providing their personal or financial information.Cart abandonment refers to customers leaving their items in the cart and leaving the website without proceeding to checkout.

2. How do you calculate the cart abandonment rate?

It is the percentage of the total number of completed purchases by the number of carts abandoned.


3. What is the average cart abandonment rate in APAC, EMEA, and the Americas?

APAC has witnessed the most abandoned carts with 82.32%, followed by EMEA with 72.58%, and then the Americas at 71.72% during the period of March 2022 to February 2023

4. What is an add-to-cart rate?

It is the percentage of users that add at least one item to their cart while on the site. It is an important metric to track marketing efforts and site usability.

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