Shopping cart abandonment is the concern of many online retailers. $18 billion is the amount of money that online businesses lose in every year caused by shopping cart abandonment. This happens with both large and small companies but it’s a much bigger concern for startups.
In fact, 1/4 of online shoppers abandon their carts because the website has complicated navigation and 21% of failed transactions due to the complex checkout process. The large companies have the funds to address these problems. But in contrast, the startup companies may not have enough resources and money, and then the problem will continue to deteriorate.
So, this article is for small companies or startups. It will bring five simple and low-cost strategies that help businesses to fight back shopping cart abandonment.
1. Poll before you build.
Before building your website, you should do the research to determine how your customers expect your site to work and then provide them the best experience. This is a great strategy for preventing shopping cart abandonment. Knowing what your customers need and creating a friendly user experience which based on their expectations will undoubtedly increase sales.
Besides, you should continue communicating with your customers during the building process and record their feedbacks. It will help you to learn what’s the most important to them; speed, efficiency, simplicity, security or all of the above.
2. Simplify the checkout process.
Providing complicated checkout systems can be the biggest problem that makes people abandon their carts. Here is some advice which can help you to build a good checkout process:
- Don’t ask your customers for too much information because it can lead customers to decide to buy products elsewhere.
- Give customers an indicator of how much work is left to complete their orders.
- Design a clean interface for your checkout page, provide a clear and short pathway to purchase, avoid customers from the frustrated.
- Automate where possible, allows to auto-populate town and state of customers when they enter a ZIP code, automatically migrate the sign-up information you collected into the checkout form, etc…
Read more tips about optimizing the checkout process for the Virtuemart website.
3. Add security measures.
Security is one of the biggest concerns of consumers when shopping online. In the U.S. there are more than 12 million Americans fall victim to identity theft every year. In fact, 17% of mobile shoppers abandon their carts due to security worries.
The online retailers can combat the security issues by using the verification products and services from a third party which provides the security measures to ensure that all user information is encrypted and kept safe. Inform customers that their information is encrypted. Once customers feel safe when all their information has been protected, they are more likely to make the purchase and then shopping cart abandonment rates will reduce.
4. Send gentle reminders.
Using reminder emails is a great way to remind customers that they have items in their cart, but don’t make them become annoying. You can send:
- Emails to users who selected high-value items or spent several minutes browsing before filling their carts.
- The notification emails which providing purchase confirmations, tracking updates or informing them of a special offer.
You also can use emails to recover your abandoned customers.
5. Encourage sales with discounts.
Everybody loves discounts. This is normal psychology of human, many people will decide to buy a product when they get a discount or a special deal even they have no plans to buy them. If you utilize the discounts correctly, you can grow your user base effectively, increase customer satisfaction and boost your revenue.