You’ve got your shopper to the purchase stage. They’ve clicked the Buy Now button.
Your shoppers can go two ways from here – follow through with the purchase of their selected goods and proceed through your checkout. Alternatively, they can opt-out from the sale.
There’s lots you can do to significantly reduce cart abandonments and maximise conversions, and we’re going to show you how.
Cart abandon rates
eCommerce makes it so easy for consumers to browse, conduct research, compare prices and products, and explore options. There will always be lost sales at the checkout and the reasons may not necessarily be a problem with your website, products or business.
But what if they are?
In March 2020, 88.05% of online shopping carts were abandoned, that is, not converted into a purchase. Check for the statistics for cart abandonment worldwide in your industry.
Let’s have a look at the top four reasons for cart abandonment and how your business can overcome them:
- Extra costs too high (delivery, taxes, fees)
Most shoppers are aware there are costs associated with ecommerce purchases. However, it can be the surprise element of unexpected costs that catch out shoppers.
Here’s some solutions:
If your competitors offer free delivery, it may be worthwhile looking at offering free delivery too. There are alternatives to offering free delivery to all of your customers, all the time. You can offer free shipping to customers who have abandoned their carts, have a monthly free shipping day or offer free shipping over certain order thresholds.
For government taxes and fees that are unavoidable, make sure you have communicated these charges up front. This helps shoppers to mentally budget and add the extra charges when shopping.
- Having to create an account
Most shoppers are wary about giving their personal data online. Allow customers to checkout as guests. With increasing awareness over security and privacy, users are hesitant to provide personal information, especially if they are first time buyers.
Could this work for your business?
By giving customers the option to checkout as a guest and not have to set up an account, gives them one less reason to abandon cart. You will have collected enough information from them to finalise the sale.
If you require an account set up, capture only the necessary information about your shopper. Just ask for the absolute minimum information to progress the sale. You may be able to collect more information at a later stage.
- Delivery too slow
While a lot of your delivery schedule is at the hands of your delivery supplier, there are lots of other ways to improve delivery.
One simple way is to offer shoppers quicker delivery at an extra cost.
Look at your internal fulfilment processes, could these be improved to get the goods out of your warehouse quicker? How about investigating other courier companies or look at external fulfilment companies to speed up the process - this is a competitive market and practices change often.
Are the delivery estimates on your website true? It might be time to check how quickly delivery is happening and adjust your estimates to reflect this. If you cannot improve your delivery schedule, advise your visitors earlier in the buyer journey.
- A lengthy process to checkout
It’s time to test and modify your checkout process. Have you ever measured how long it takes to complete your checkout process? Is it too complicated or capturing information that is not necessary for the sale?
Tips for a smooth checkout:
Strip it back to the bare minimum to keep your buyer engaged during the purchase stage. Don’t lose their attention during checkout.
Provide a mobile optimised checkout process. With over 72.9% of all ecommerce sales made on a mobile, ensure it is easy for buyers to complete your checkout process on their smart device.
Does your checkout offer the right payment options? Online retailers in the UK lose more than 1.8 billion pounds (2.13 billion euros) annually due to the lack of payment methods available for their customers.
Get ready for your returned shoppers
It’s not all bad news – in 2020, a third of UK shoppers that abandoned carts came back to finalise their transactions. This highlights the power of the abandoned cart email or a retargeting digital campaign.
This is the time to acknowledge they have returned and welcome them back with open arms.
Flash a free delivery offer – or a discount code voucher. Add a time limit on the coupon to bring a sense of urgency and keep their focus on finalising the purchase. This could just be the nudge they need to get them to buy.
Woo them with customer service – provide clear ways for them to contact you in the case their original reason for cart abandonment is still an issue. Email contact details, FAQs or providing a live chat gives them the opportunity to ask questions to clear up any issues.
Offer a range of payment finance options for your audience. With credit card issues down 10% since the COVID-19 pandemic, what happens when your customer does not have enough money available for their shopping?
What about finance that allows the customers to discover their shopping budget early on in the journey?
etika was one of the first finance platforms that allows customers to perform a soft credit check to let them know what they can borrow upfront to avoid the drop-offs that come with credit declines. Our technology provides their budget early in the journey, so they can browse and shop with confidence.
What is a soft credit check?
A soft credit check does not leave a mark on the customers’ credit file. It allows them to find out how much they can spend early in their shopping journey. Only customers who complete a full application after the soft search check, will have a hard search on their credit file.
Our unique lending technology delivers flexible, affordable finance fitting for you and your customers. A popular option of etika’s bespoke finance products is the customisation of our finance with your brand colours, for a seamless, consistent experience throughout the payment authorisation process.
There are so many ways you can use etika’s bespoke finance for your online shop to save your cart abandonment rates and maximise your sales conversion. Talk to us about fair finance that fits on 0800 028 9321 or contact us here.