Uploaded on Apr 8, 2022
https://vue.ai/blog/ai-in-retail/shopping-cart-abandonment-ultimate-guide/
Shopping-Cart-Abandonment-in-Ecommerce-_-Vue.ai
CGVue.ar
REQUEST DEMO
Al IN RETAIL
Shopping Cart Abandonment in Ecommerce
-The Ultimate Guide
June 24,2020 13 min read Shyam Ravishankar
Digital Marketing Manager
What is Shopping Cart Abandonment?
Shopping Cart Abandonment is when a high-intent shopper visits an eCommerce
website, adds at least one or more products to the shopping cart, and proceeds to exit
the website without completing the purchase. Products that are added to the
shopping cart but are not purchased are considered to be “abandoned” by the
shopper.
Shopping cart abandonment has absolutely nothing to do with the visibility of the
website or the offers run in the advertisements. So this cart abandonment problem
cannot be solved by giving away more freebies. This requires a careful analysis of
why exactly users are bouncing away from the website despite clearly liking the
products.
88% of Web buyers say that they have abandoned an online shopping cart
without completing a transaction.
- Forrester
How to Calculate the Shopping Cart Abandonment Rate?
Ecommerce cart abandonment rate can be calculated and monitored by ecommerce
retailers to understand specific reasons for increase/decrease in revenue. This helps
in understanding the percentage of purchase intent showcased by the visitors of the
site, who don’t buy even after having items in the cart.
Shopping cart abandonment rate = [ 1- (total no. of completed purchases/number of
carts created) ] x 100%
Cart Abandonment Rate is calculated by dividing the total number of completed
purchases by the number of shopping carts created. Subtract the result from one and
then multiply by 100 for the abandonment rate.
Why is Shopping Cart Abandonment a problem for retailers?
With the whole retail apocalypse theory falling flat and the “resurrection” of brick and
mortar retail, it’s finally understood and widely accepted that it’s no longer a fight
between retail and eCommerce.
Instead, it is all about customer experience at each and every touchpoint, be it online
or offline, eCommerce is no longer the juggernaut that retail has to fear.
Instead, while we have seen legacy retailers who ruled the market slip and fall like
Sears, Toys R Us after failing to adapt to changing expectations, we have also seen
several eCommerce companies fold.
Physical stores and eCommerce websites have their own pros and cons. For instance,
eCommerce offers people the convenience of sitting at home and shopping without
having to move at all.
However, retail offers a physical experience that eCommerce websites can never
replicate. Sephora Studio, Nike’s experience store, Lululemon’s Mindfulosophy are
examples of very successful shopping experiences that have won over famously-fickle
millennial shoppers.
When you actually talk to consumers, they still want to shop by touching and
trying on. They still want to connect, to step into space, and feel something.
- Forbes
Ecommerce websites, however, have one unique problem that retailers typically
never face. This is called shopping cart abandonment.
How Shopping Cart Abandonment impact E-commerce?
Retailers were reported to have lost a whopping $4.6 trillion to abandoned
merchandise in ecommerce shopping carts according to Business Insider.
Abandoned carts have a huge impact on the turnover of the company. These are
shoppers who were interested in the product and yet abandoned their cart due to
certain reasons; most of which are avoidable with the right strategies.
Reasons for Shopping Cart Abandonment in E-commerce
To understand why shoppers abandon their carts, we need to deep-dive into what
these shoppers do on the website.
Retailers need to differentiate between shoppers who come in with an intent to buy
and those who are there to window shop only.
High-intent shoppers usually know what they are looking for, if not at the product
level, at least at the category level. They typically add products to wishlists and
shopping carts to shortlist them.
REASONS FOR
SHOPPING CART
ABANDONMENT
The average fort size for fashion eCommerce retoiters is
3,74 products per order*
This means that the average shopper is interested In
more than one item at a time. But why does this same
shopper bounce from the website without completing
the purchase?
SMALLER THE SCREEN, BIGGER THE PROBLEM
Desktops draw in the user's attention to one
task whereas various apps on mobile phones
keep sending interesting push notifications
which in turn distract the shopper from
completing the purchase.
JUS! L(JOKING'RESEARCHING
Most shoppers on a website are Just browsing
through and are not particularly interested in
making a purchase on the same day. While this
seems unavoidable, a groat experience can
ensure that they come back to complete their
purchase later.
OTHER COMMON ISSUES
High additional costs [usually shipping and
taxes), a long and complicated checkout
process with multiple pop-up windows or a
cumbersome interface, and the fear of the
product looking different from the
picture/description.
'Slot from di^itoJ commerce 360
^* Vue.ai
Reasons for shopping cart abandonment
Shoppers who add products to the cart can be broadly categorized into those who
complete the checkout and those who don’t. When we look at the cart itself, we see
the following.
The average cart size for fashion eCommerce retailers is 1.74 products per order.
-Digital Commerce 360
This means that the average shopper is interested in more than one item at a time.
But why does this same shopper bounce from the website without completing the
purchase? To answer this question, it is important to understand shoppers and the
reasons why they abandon their carts.
The device shoppers use may lead to cart abandonment as shown below.
The smaller the screen, the bigger the problem.
• Desktop... 73.1% average shopping cart abandonment rate.
• Tablet... 80.7% average shopping cart abandonment rate.
• Mobile...85.6% average shopping cart abandonment rate.
Part of the problem is rooted in technology. There could be little or no optimization for
mobile.
-Forbes
This is also due to the inherent nature of the device. Desktops draw in the user’s
attention to one task whereas various apps on mobile phones keep sending
interesting push notifications which in turn distract the shopper from completing the
purchase.
Mobile phones are also most commonly used to browse for items while on-the-move
or in-between other tasks. This means, the shopper had no intent to purchase in the
first place and this might make it difficult to convert the shopper.
Here are some other reasons for shoppers abandoning their carts
- SalesCycle
This shows that most of the shoppers who abandon their carts on a website are just
browsing through and are not particularly interested in purchasing on the same day.
This seems to be the biggest reason for cart abandonment. While this seems
unavoidable, a great experience can ensure that they come back to complete their
purchase later.
Apart from technology limitations, many other reasons contribute to a shopper not
completing their purchase. A few other common reasons for cart abandonment are
high hidden costs which aren’t mentioned upfront(usually shipping and taxes), a
long and complicated checkout flow with multiple pop-up windows or a
cumbersome interface, and the fear of the product looking different from the
picture/description.
9 Proven Ways to Avoid Shopping Cart Abandonment in E-
commerce
Simple tips to avoid shopping cart abandonment
1. Need for speed!
24% of customers cite “Website Crashed” and 15% cite “Website Timed Out” as
reasons that they didn’t complete a purchase.
- Shopify
In this fast-paced era with an element of impatience, where people exit a website if it
takes more than a few seconds to load, the key to reducing shopping cart
abandonment is to ensure that the website or app interface provides an experience as
seamless and painless as possible.
This means, using techniques like lazy loading to keep load times as low as possible.
Keep testing the speed of the website after each update. This is especially important
because shoppers remember the sites that give them a bad experience very well.
2. Go Mobile
Approximately 4 billion people own a mobile phone. Of that number, 25 per cent of them
use it as their sole method of accessing the Internet.
-Retail Dive
Since younger shoppers are increasingly using their mobile phones to shop, a
streamlined, attractive mobile interface of the website is vital to getting more online
sales traction. If the interface is haphazard and not user-friendly, then this, combined
with the usual distractions (calls, messages, social media..etc) will lead to increased
cart abandonment rate.
Mobile-friendly websites were great but it is time to upgrade to a mobile-optimized
or a responsive website. In fact, the best way to capture the millennial market would
be to have a native mobile app developed for both Android and iOS as no website
compares to a native app in terms of ease of use and navigation.
This has been proven time and again by some of the world’s biggest retailers like
Amazon, eBay, Groupon, H&M, etc.
3. Keep the checkout short and sweet
More than a third (35%) are turned off of a brand by just one bad experience, so getting
the user experience right is of paramount importance.
- Biz Report
With an abundance of eCommerce websites providing shoppers with more choices
than ever before, shoppers tend to lean towards the ones with easier checkout flows.
The minute they encounter a lot of pop-up windows or multiple confirmations for the
same action, they are going to exit to find a website with an easier interface. Same
way, if they find a website with an enhanced UX, that brand is going to earn their
loyalty.
87% of online shoppers said they would abandon their shopping carts during checkout if
the process was too difficult. And on top of that, 55% admitted they would abandon
their carts and never return to the retailer’s site.
- Retail Dive
Shoppers don’t like filling up registration forms, verifying email IDs and phone
numbers, and entering their billing and payment details but this is necessary for
every eCommerce website.
A simpler way to do this would be to allow shoppers to register with their social
media accounts. Simple steps like this can go a long way in avoiding shopping cart
abandonment
The cart page must appear uncluttered and present a clear picture of the chosen
products. Prominent details on the page must include a breakdown of the price in
terms of cost, shipping, and taxes, information on the return/exchange policy, and
delivery.
A well-designed checkout process and - crucially - one which works well on mobile as
well as desktop is vital.
- SalesCycle
Traditional eCommerce websites can take a leaf out of Amazon’s handbook by
facilitating a one-click order process. The social media app, Instagram recently
launched a new feature that allows potential shoppers to click on a picture with the
outfit they like and purchase it directly through the app without visiting the actual
website. This says a lot about how much modern shoppers value a quick,
efficient shopping experience.
4. Eliminate uncertainty:
One of the major complaints of online shopping is the difference between the real
product and its online description or product images. This can be reduced by realistic
product photography, incorporating more detailed, catchy product
descriptions, and by including videos of the product that show a more realistic image
of the product and its attributes.
The importance of keeping all descriptions honest and as real as possible cannot be
stressed enough. Heavily-edited photos are a big no in an age where shoppers value
credibility over everything else.
In the eyes of the digital consumer, a product is only as good as the information
associated with it.
- RetailDIVE
Fashion websites need to stop using flat lay images and ghost mannequins. On-model
fashion imagery can improve conversion rates considerably. And it is not enough to
have a model of just one body type and skin colour.
Shoppers today want to know how the dress will look on their skin tone and body
type. But photoshoots with multiple models are bound to cost a lot of money. This is
where AI can help. An on-model fashion imagery generator can save costs, increase
the number of conversions and save a lot of time.
5. Keep all prices transparent
63% of abandoned carts are due to unexpected costs such as shipping at checkout.
-Statista
Most websites show one cost in advertisements or even on the PDP (Product
Description Page) and then increase costs in the cart. This makes shoppers wary of
the sudden increase in price. The easiest way to avoid shopping cart abandonment is
to make sure all costs (including shipping and taxes) are clearly indicated in the
product description page.
This ensures that people don’t bounce from the checkout page seeing a jump in the
total cost. One thing websites can do is to build the tax in within the product cost, and
mention the cut-off rate for free shipping and delivery (if it exists) at the home page
or the product pages. This will ensure transparency and credibility.
The good news is that 58% of shoppers say they’d add items to their cart to qualify for
free delivery -Retail Dive
6. Peer Pressure
The best person to convince a shopper is another shopper. A simple message like
“3000 shoppers bought the same product this month” can go a long way to reassure
shoppers that they have made the right decision. When shoppers feel that they’ve got
the best deal for their price, they are positively inclined to go through with the
purchase.
A website can also assure them of this by including information about savings,
shopper ratings, and reviews for each product page which is a great way to foster
trust.
Social proof is another way to improve credibility and boost checkout rates, There
are several tools that allow companies to display social media posts on the website.
This shows shoppers what other people think of the website and the product,
providing social proof to nudge the shopper to checkout.
7. Returns
One of the greatest advantages of eCommerce is their ability to offer doorstep
return/exchange facility. An efficient policy supporting this needs to be clearly
placed on the checkout page to offer reassurance to the shopper. Free returns
allow shoppers to buy items without any worry and doubt.
- SalesCycle
8. Style it up!
Another effective element to include in the shopping cart abandonment page is
styling recommendations based on the products in the cart. When a shopper sees
accessories to complete the look, it inspires her to visualize the outfit and encourages
her to add those accessories to her cart or at the very least, purchase the clothes to
be styled with similar accessories she already owns. This increases the size of the
cart and provides a great experience
9. Multiple Payment Options:
With the abundance of payment options available, retailers need to offer multiple
payment gateways including region-specific payment options, and the option to
remember their payment details. New payment partners may also offer special deals
and cashback schemes enticing the shoppers to complete their purchase.
Cart Recovery: What to do with abandoned carts?
Source: Bl Intelligence
While the strategies mentioned above would certainly reduce shopping cart
abandonment rates, it is impossible to make it zero. This makes it imperative for
retailers to keep some checks in place to recover these abandoned carts.
NO MATTER what you do, the shopping cart abandonment rate will never be zero.
There will always be extenuating circumstances that drive a consumer to abandon a
sale, whether it is an offline distraction or a text from a friend.’
- Retail Dive
Cart recovery is surprisingly easy and can save a lot of money for eCommerce
websites. The cost of recovering a cart is typically much less than the cost of acquiring
a new shopper. This is also because the company knows exactly what the shopper is
looking for and can offer personalized deals.
Companies have to make major improvements in how they engage with their customers
by developing more relevant, personalized engagement, within a single channel or
across channels, based on a customer’s behavioral cues. Those signals can be basic, such
as “cart abandoned” or “browsed but didn’t buy,” or more nuanced, such as activity by
segment and time of day, gleaned from mining customer data. In effect, these signals
become triggers that invoke an action. A decisioning engine develops a set of triggers
and outcomes based on signals and actions the company takes in response.
- McKinsey
Using cookie-based retargeting can easily bring back shoppers. This retains the
contents of their carts for a longer period of time. Combined with personalized
advertisement, this is bound to bring the shopper back to complete their purchase.
“Retargeting generates greater online sales by keeping your brand front and center
and bringing “window shoppers” back when they’re ready to buy.”
-AdRoll
But what is a tried and tested way to recover abandoned carts?
The easiest way to lead shoppers back to the website is by sending them an app
notification or an email reminding them that they’ve left their cart without
completing the purchase.
62% of retailers send cart-abandonment emails - Digital Commerce
Cart abandonment emails are simple and the ROI is incredibly high.
Nearly half of all abandoned cart emails are opened and over a third of clicks lead to
purchases back on site.
-Shopifyl
How to write a perfect Abandoned Cart Email?
Here are the 5 basic rules for a successful cart recovery email
1) Picture of the products in the cart
2) Ratings/Reviews of the products by other shoppers
3) Return/exchange policy information
4) Complete price of the product including shipping charges
5) A clear call-to-action button that links to the cart
But shoppers get emails from multiple websites every single day. How can retailers
make their emails stand out?
An Al-powered shopping cart abandonment tool that recommends visually similar
products and styling suggestions personalized by understanding each shopper’s
visual style can power compelling cart abandonment emails that make cart
recovery a habit. These emails add value to shoppers and one open can lead
to shoppers opening every subsequent email as the content is completely
personalized. This not only recovers the cart but also tells the shopper that the
retailer understands them.
1. Keep the subject line interesting and fresh
An office worker receives around 121 emails a day on average. The average open rate
is 16%. This means, only around 20 emails are opened daily. This makes it all the
more important for the subject line of an abandonment mail to be interesting and
fresh. This makes the user get curious and open the mail which is the first win for a
shopping cart abandonment email.
2. Show visually similar products in the email
Once a shopper opens the email, they need to be enticed to go back and complete the
purchase. While the shopper may have liked that particular item which is in the cart,
they may have liked the style. A “You may also like” section can go a long way in this
case. This gives the shopper different choices which are visually similar to the
product in the cart, allowing them to pick another piece similar to what they had
browsed.
3. Inspire your shoppers with different ways to style the outfit
There are times when a shopper won’t know what to pair with an outfit and will end
up abandoning the cart because of this. Personalizing styling options based on the
shopper’s style profile can prove to be the catalyst that converts the shopper. The
same top can be styled in several different ways as shown below. An email with
different styling options can not only help recover the cart but also increase the size
of the cart.
4. Give small discounts on the products in the cart
Instead of having large discounts on various products on the website, having a small,
personalized discount will go a long way in converting shoppers. As the items are
already in the cart, shoppers don’t have to be convinced about the value of the
product. They just need a small nudge and even a small discount can provide just
that.
fa
We Miss You1
Thank you br being a loyal customer As our valued
customer we'd like to offer you a 1 Oi off on your
next purchase
fnler NZATKQ5 at Check out
SHoe now
Recommended specially for you
Conclusion
Ecommerce shopping cart abandonment is a problem that has been plaguing
eCommerce retailers from the outset. A combination of strategies that work best for
your business will allow you to attain the two-fold goal of preventing mass cart
abandonment and converting shoppers who abandon carts into loyal customers. One
thing is for sure, there is good money in recovering abandoned carts!
General FAQ
What is Digital Cart Abandonment?
Shopping cart abandonment is an “ecommerce” term used when a high-intent
shopper visits an ecommerce website, adds at least one or more products to the
shopping cart, and proceeds to exit the website without completing the purchase.
Products that are added to the shopping cart but are not purchased are considered to
be “abandoned” by the shopper.
What is Cart Abandonment Rate? and How to Calculate it?
Cart abandonment rate is calculated and monitored by ecommerce retailers to
understand specific reasons for increase/decrease in revenue. This helps in
understanding the percentage of purchase intent showcased by the visitors of the
site, who don’t buy even after having items in the cart.
Shopping Cart Abandonment Rate is calculated by -
Shopping cart abandonment rate = [ 1- (total no. of completed purchases/number of
carts created) ] x 100%
Why is Digital Cart Abandonment a problem for retailers?
Shopping cart abandonment is a problem for retailers due to multiple reasons.
Loading up carts and abandoning them can result in product unavailability for
genuine customers and will therefore result in loss of revenue. High rates of cart
abandonment will require a change in marketing and pricing strategies which will be
capital and labour intensive. Customers who add products to their cart and abandon
them put great strain on servers which in turn slows down the site and gives genuine
customers a poor UX.
How to Avoid Shopping Cart Abandonment?
You can avoid the shopping cart abandonment in your ecommerce website by
following these simple steps
1) Make your website load faster.
2) Go Mobile.
3) Keep the checkout short and sweet.
4) Eliminate uncertainty.
5) Keep all prices transparent.
6) Peer Pressure.
7) Offer efficient Return/Exchange Policy.
8) Use Personalized / styling recommendations.(personalization engine)
9) Multiple Payment options.
CART ABANDONMENT CART ABANDONMENT EMAILS ECOMMERCE CART ABANDONMENT SHOPPING CART
SHOPPING CART ABANDONMENT
VUfcJ.dl
Vue.ai earns 7 badges in the G2 Spring 2022 Report
By Anisha Rajasekar April 7,2022
By Team Vue.ai March 22,2022
By Swetha Ganesh March 14,2022
A Mad Street Den Brand
Products About Resources
VueX Home Resource Center
VueTag Contact Us Podcast © 2021 Mad Street Den Inc. All rights reserved
VueCommerce Partner Program Customers
f # @ in
VueStyle Privacy Policy Blog
VueModel
Information Security
Policy
Terms of Service GDPR
Press
Comments