E-commerce
September 30, 2024

How To Reduce Cart Abandonment

Illu

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Introduction

Cart abandonment can be one of the biggest frustrations as an online seller. 

Conveniently, research has shown what the primary causes are. 48% of abandonments are simply an inevitable result of online shopping habits - people adding items to their cart as part of the browsing experience without any intention of buying them. There is little one can do to change this and the focus of this post is how to address the remaining causes.

When you exclude that 48%, these are the reasons people abandon their carts:

Extra costs

Of all the extra costs at the checkout stage, shipping is usually the most expensive. Unlike taxes, there are simple steps you can take to reduce it.

Shipping platform

The most straightforward way to reduce shipping costs is by using a platform like Shopify Shipping or Sendcloud, which offer pre-negotiated discounts with major carriers.

Reduce packaging size and weight

Smaller, lighter packages cost less to ship, so you should always aim for the smallest possible dimensions. For smaller items, you can replace cardboard with poly mailers or padded envelopes, which reduces both size and weight. 

For larger items, you can save weight with light packing materials like air pillows, packing paper or bubble wrap and using corrugated cardboard boxes. In some cases, you can save on costs by splitting orders into multiple packages to distribute the weight more favourably.

Save on shipping supplies

Supplies are rarely a major cost, but shopping around for discounted supplies on Amazon or Alibaba can help you make savings. Some carriers offer free packaging options, but this can depend on volume and region.

Offer click and collect

You can use a service like Collect+ or Royal Mail’s Local Collect to offer delivery to local stores and reduce delivery fees. Bear in mind that customers don’t always collect these, so returns are likely to increase a little.

Having to create an account

This is fairly straightforward - just provide a “guest checkout” option, so shoppers don’t have to make an account. 

Some users that would otherwise have made an account will skip it, so there is an opportunity cost. You can determine whether to continue by comparing the value of the extra sales with the lost revenue from the reduced account creation.

Delivery too slow

Optimise delivery

If you handle your own deliveries, you can use a transport management system (TMS) to optimise routes and reduce travel time.

Optimise inventory management

Inventory management software lets you clearly see your stock levels and reorder automatically to prevent delays. Organising your warehouse by pre-packing products, using appropriate signage or separating items by type and function can save time on fulfilment.

Consider outsourcing

Using third-party fulfilment centres near key regions can reduce shipping distances and costs, especially for areas with higher shipping fees and if you don’t already outsource to a delivery company, it can be an effective way to reduce delivery times. Alternatively, you can outsource shipping, fulfilment and delivery together through a third-party logistics provider (3PL).

Evaluate your outsourcing provider

If you already use a 3PL, it’s worth comparing it with other providers. You can use tools like this one to match you with providers based on your needs, or evaluate individual providers on their geographic reach and speed.

Trust and payments

Some people abandon carts due to a lack of payment options, which would also resolve another common issue - not trusting the site with their card details.

Incorporating secure payment gateways like PayPal or Stripe can build trust and including digital wallets like Google Pay and Apple Pay can appeal to broader preferences. This also enables international customers to pay in their domestic currency. 

Adding BNPL methods like Klarna gives shoppers more flexibility and can broaden the appeal further.

Checkout process too long

Besides enabling guest checkout and incorporating payment gateways with express checkout options, here are some of the most effective ways to improve:

  • Only ask for essential information (address, contact info, payment info)
  • Keep every checkout field in a single page to reduce the number of clicks required
  • Incorporate progress indicators to reduce the frustration that comes with not knowing

Website errors and crashes

To identify website errors, you can use performance monitoring tools like Pingdom or UptimeRobot to track uptime and error rates. Analytics tools can help by showing where users tend to drop off in the checkout process.

To identify new errors in real time, you can use tools like Sentry or Raygun and fix the issues before they impact a large number of users. 

Using high-quality hosting services with good uptime guarantees will make your site less prone to crashes and a content delivery network (CDN) will enhance site speed.

Unclear upfront costs

In addition to clearly stating the cost of products, flat-rate delivery (charging the same delivery rate across items) means you can display the shipping cost upfront rather than at checkout to increase the proportion of people completing the purchase.

Unsatisfactory returns policies

To improve on this, you can simply offer a longer return period. Without the urgency that a short time window induces, you’re unlikely to see a big increase in returns, but ultimately you need to test it to determine the effect.

You can try offering free returns. This can encourage shoppers to buy things they may not want, but sometimes the extra revenue outweighs the cost.

In conclusion, these are the key points to keep in mind:

Many of the above steps to reduce cart abandonment incur extra costs, which will have to be compared with their impact. For this kind of financial analysis, you’ll need to collect the relevant data and use analytics tools to assess its impact on cash flow and profitability. The best way to do this is with a platform that collects such data automatically and gives you the essential insights. 

All the steps outlined above can be applied to most ecommerce businesses, but there can be reasons people abandon their carts that apply to your specific industry. Ultimately, the most effective way to address this is by talking to customers, getting feedback and testing new ideas.

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