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If you do a quick search online you will see that there are a range of different numbers floating around on what the average Shopping Cart Abandonment Rate is and just about all of them are over 50%, which as an eCommerce Owner or Manager should concern you greatly.
The best average Shopping Cart Abandonment Rate figure we found was 68.07% from Baymard what I love about this number is that it is the average of 29 different Shopping Cart Abandonment Rate research figures on the internet.
The Buisness Insider has said that approximately $US4 trillion worth of merchandise will be abandoned in online shopping carts this year, and about 63% of that is potentially recoverable.
We often ignore macro numbers so let’s make this more applicable to the average size eCommerce store is Australia. Let’s say you’re doing $30,000 of online revenue each month. If your average order is $200 you’re making 150 sales per month. Assuming that 68% of people drop off from your shopping cart you are directly losing $63,750 per month or $765,000 in sales per year. Now when your yearly revenue is only 360,000 per year that is A LOT of money.
Consumer Electrics: 74.1%
Style & Fashion: 71.9%
Food & Drink: 75.7%
Health & Beauty: 65.7%
Home Furnishing: 69.8%
Sporting Goods: 69.1%
As you can see in the above figures this issue isn’t hurting just one sector it’s a universal problem for retailers.
Ok, so our small eCommerce store example above is losing $765,000 per year because of shopping cart abandonment. So, I’m assuming it’s now very clear that Shopping Cart Abandonment is most likely hurting your business, but why? Here are the 14 main reasons why people are leaving your shopping cart according to Statista.
Let’s look at the top 5 reasons your websites visitors aren’t turning into paying customers.
Let’s cut to the chase NOONE likes unexpected costs. Don’t get me to fill in my details and then tell me I have to pay for shipping. Don’t tell me just before I need to enter my credit card details that your dispatch time is 2 to 3 weeks.
Don’t try and be sneaky like the airlines and advertise the price without taxes. Your target market agree’s to a price in their mind and decides to move forward when you through them a curve ball they lose trust in you and become frustrated.
You can’t do much about people who are just browsers. Instead of trying to sell your products to a cold or first time visitor why not go for a micro sales? Use an Overlay to capture your visitors email addresses so you can start to form a relationship with them.
Here are the 6 typical e-Commerce Funnel Stages.
1. Someone visited the website
2. Someone viewed a category page or a listing
3. Someone viewed a product page
4. Someone added at least one product to the basket
5. Someone began started the checkout process
6. Someone completed a transaction/ the checkout process
If your prices are not the cheapest you need to make sure customers are aware of the value that you offer on top of just the price.
I spoke to a client a few months ago, she offers amazing value and until I spoke to her on the phone I had no idea she offered value add’s such as Expert Advice and a Money Back Guarantee. I suspect her websites visitors were also not aware of this additional value, as she told me price was never an issue if someone called her.
Add Value in every single way. Dispatch faster, Reduce the buyers risk and offer a money back guarantee, offer expert advice, offer delivery insurance, offer express delivery etc.
What does this mean? You haven’t clearly communicated/ demonstrated the value of your product to your visitors.
Too many eCommerce stores have boring generic copy in their descriptions, they have poor quality images that do there product no justice, they don’t have case studies for each product & they don’t demonstrate their product in a video.
They lost try in either your company or your product. The risk became greater than the perceived reward and they decided your eCommerce store couldn’t provide a solution to their problem with the confidence that they required.
Why? Usually this is because you haven’t properly communicated your trust signals. No Address, No Phone number, No Reviews, No Testimonials, No face behind your company, crappy old design etc.
Firstly you need to determine what your shopping Cart Abandonment rate is. Google Analytics is by far the most popular analytics tracking platform and if you have eCommerce tracking set up this should be really easy for you to determine.
If you’re struggling or need help to determine your shopping cart abandonment rate give us a call and we will help you determine the rate for free. Just give us a call on 1300 889 303 if you are shy feel free to email us firstname.lastname@example.org