Online retail is great for businesses in so many ways. They can gain access to markets and potential customer sectors that were simply not available to them before due to their geographical location and can also use automation to sell their products at any time of the day or night, seven days a week. This is something that simply was never even an option for the majority of businesses in the past.
Today all it takes is an online shop and little bit of internet savviness to start driving traffic to it so that your business can start making money on the web. But how many of the people who add products to the shopping cart on your website actually go on to buy them?
It was estimated by a British research firm that the average shopping cart abandonment rate was around 67.44%. This means that on average (astonishingly) over two-thirds of the people who decide to buy something and place it into their online shopping cart back out before proceeding with payment. Some of the retailers were even experiencing an abandonment rate of around 80%.
Try to imagine how much your overall online revenue would improve if you managed to reduce that by 20%? Or perhaps even 30%? No doubt your end-of-year financials will be looking a lot healthier!
Of course, a certain amount of shopping cart abandonment is a certainty and just comes as part of being an online retailer. But by being more proactive about finding out the causes of shopping cart abandonment for your business it could have a very positive impact on your bottom line.
So, what are the most common causes of shopping rate abandonment and does your business do any of them?
- Adding additional costs
- Non-competitive prices
- Technical problems
- Too slow
- Foreign currency
Some businesses are not totally upfront about all of the costs at the get-go. If you fail to mention that a purchase will require VAT or sales tax or have massive postage charges until payment time, this will be hugely discouraging.
If they decide to do a Google search for the same product you are selling before going ahead with the purchase and find that you are being undercut by a competitor, they have no reason to continue with the purchase unless your business adds value in some way.
A problem on your website that makes a potential customer have a browser crash will usually be enough to drive them away for good. They are not going to risk putting any payment details into a shop that seems to be broken.
If there are pages and pages of checks and sign up procedures for someone to go through before they make their first purchase from you, they will probably just buy it from somewhere they have used in the past even if it is slightly more expensive. For most people, time is as valuable as money.
Many online shops will default to the currency of the home country of the business rather than offering the price in the currency of the visiting user. Not knowing exactly how much something will cost in their native currency is enough to put many people off.
For a multi-currency, reliable and fast eShop you should check out our eShop App