Lost sales are the biggest challenge for any Magento store owner, and cart abandonment is the most common reason for this. Baymard Institute reports that: The average cart abandonment rate is about 70%. In terms of revenue, businesses lose $18 billion each year due to cart abandonment.
That’s a huge number!
Across the globe, there are 250,000 merchants that use the popular e-commerce platform Magento, so if you are struggling with lost sales and abandoned carts, you’re not alone. It’s a challenge that every online store owner encounters at one point or another, Digital Marketing Companies in Phoenix but the good news is that by employing the right strategies, you can easily turn your lost sales into conversions. In this post, we will uncover the reasons behind cart abandonment and ways you can recover lost sales. But before that, let’s first understand the term “cart abandonment.”
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What Is Cart Abandonment?
Simply put, cart abandonment is a term used to describe an instance where customers add items to their online shopping cart but leave the checkout process without completing the purchase. More cart abandonments not only mean less conversions, but unpleasant customer xperiences, too.
Top 4 Cart Abandonment Triggers
Several reasons may cause a user to leave the checkout flow without completing their purchase. Let’s look at a few of the most common, yet often overlooked, reasons behind cart abandonment.
1) High Surplus Charges
Several e-commerce store owners overlook the negative impact of adding extra costs, such as shipping, tax and other fees, at checkout. In a cart abandonment survey conducted by the Baymard Institute, 53% of the respondents agreed that they left the checkout without buying because of the extra costs and hidden fees associated with their purchase, which weren’t mentioned upfront.
2) Forced Registration
More often than not, forcing your customers to register if they want to buy from you may cause them to leave the checkout flow without completing the purchase. In fact, over 31% of U.S. shoppers admitted that they discontinued their order as they were unable to proceed further without registering. With an overwhelming number of e-commerce sites to choose from, your customers desire the flexibility and convenience of completing their purchase without creating an account – particularly if it's their first time and they're not sure if they will return.
3) Checkout Process Is Too Long or Complicated
An intricate checkout process can turn off a good number of your customers. When your customers have already invested their time in curating the products they want, you simply don’t want to tangle them up with an incomprehensible checkout process. Moreover, your checkout flow shouldn’t be more than four steps. The probability of losing your customers increases with every additional checkout step, so the fewer the steps, the better.
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4) Site Is Too Slow
In the same survey, 16% of respondents admitted that they left the checkout page as the site was very slow. Other research on e-commerce site speed shows these numbers: Effect on Sale: 79% of customers who report dissatisfaction with website performance are less likely to buy from that same site again.
Conversion: 1 second delay means a 7% reduction in conversions
Speed Affects Revenue: If your site makes $100,000/month, a one second improvement in page speed brings $7,000 month While these four reasons Digital Marketing Companies in Nashville seem to account for the most number of lost sales, there are many more triggers to cart abandonment. For instance, customers may leave the checkout if they are unable to pay or don't trust the site. And factors such as return policy, technical inconsistencies and poor customer service can also hamper your conversions: