Cart abandonment is a significant challenge for Shopify store owners, with a staggering 70% of online shoppers leaving their carts without completing their purchases. For every 10 customers who add items to their shopping cart, seven fail to finalize the transaction, leading to billions in lost revenue. According to Gartner, eCommerce stores lose $18 billion annually due to cart abandonment, while recent data from SalesCycle in 2023 shows the average cart abandonment rate at 79.53%.
This issue is especially prevalent during December, when impulsive shoppers take advantage of Black Friday and holiday sales, causing cart abandonment rates to peak. Factors such as a complicated checkout process, high shipping costs, and wishful thinking contribute to these losses, affecting businesses of all sizes.
For Shopify store owners, reducing cart abandonment is not just about improving user experience—it’s about recapturing lost sales and maximizing revenue potential during critical shopping seasons.
Common reasons why your customers abandon their carts
In the world of eCommerce, cart abandonment often results from natural user behavior. Many online shoppers engage in window shopping, price comparisons, saving items for later, or browsing gift options. These browsing sessions frequently lead to unavoidable cart abandonment as users aren’t always ready to make a purchase.
In fact, according to Baymard, 48% of U.S. shoppers abandoned their carts in the past three months simply because they felt "not ready to buy" or were just casually browsing. Most consumers will drop off right before reaching the checkout stage.
Here are the key reasons why customers abandon their carts
(Source: Baymard)
- High extra costs: Shoppers often abandon their carts when the final total during checkout is inflated due to taxes, shipping fees, and handling costs, which are only calculated at the last step. These additional fees can significantly raise the total price, discouraging customers from completing the purchase.
- Account requirement to checkout: Many users find creating an account unnecessary, especially if they don't plan to make frequent purchases. This extra step takes more time and effort, and some customers worry that signing up will lead to unwanted marketing emails or expose their personal information to third parties.
- Credit information security concerns: Customers are increasingly concerned about the safety of their credit card information. If a site seems unreliable or lacks strong security features, they may abandon the checkout process to avoid the risk of data breaches or fraud.
- Slow delivery: Delivery times, particularly for international orders, can be a significant factor in cart abandonment. When customers see that fast-shipping options aren’t available, or if the delivery window is too long, they may look elsewhere for quicker service.
- Complicated checkout process: A confusing or overly lengthy checkout process can frustrate customers, leading them to abandon their carts. A smooth, intuitive checkout flow is essential to keeping shoppers engaged through to completion.
- Site speed and app performance issues: Slow or poorly performing websites erode customer confidence. If a site is laggy or difficult to navigate, users are more likely to give up and look for alternatives.
- Lack of payment methods: Many stores lose potential sales by not offering a wide range of payment options. Customers now expect multiple payment methods, including credit cards, online banking, cash on delivery, and buy-now-pay-later services, to accommodate their needs.
- Ambiguous return and refund policies: Shoppers are more likely to abandon their carts if the return or refund policy isn’t clear. Since they can’t physically inspect the product before buying, they want the reassurance that they can easily return or exchange items, particularly for higher-value purchases.
7 ways to deal with your cart abandonment crisis
Send abandoned cart emails
When customers abandon their carts, it doesn’t necessarily mean they have lost interest—many are simply distracted or undecided at the moment. By sending a well-timed reminder, businesses can re-engage these potential buyers and encourage them to complete their purchase.
In fact, studies show that cart abandonment emails can recapture a significant portion of lost sales; businesses using cart abandonment email campaigns generated over $60 million in sales within just a three-month period for their users, according to Klaviyo.
Shopify offers an abandonment cart feature that allows store owners to track abandoned carts, particularly when customers are logged into their accounts. By utilizing this feature, businesses can send timely reminder emails to nudge customers toward completing their purchases. These emails can be personalized and enhanced by including promotional offers or discounts, further increasing the likelihood that customers will return and finalize their orders.
Offer loyalty rewards program
Offering a reward program is a powerful way to reduce cart abandonment and encourage customers to complete their purchases. Reward programs provide an extra incentive by allowing customers to earn points or receive discounts on future orders, which can be especially persuasive when they abandon their carts. The prospect of spending less than the original cart value, thanks to accumulated rewards or discount codes, can motivate customers to return and finalize their transactions.
Loyalty programs also help create a cycle where customers are rewarded for previous purchases. They earn points, receive discount codes, and then redeem those rewards on future orders. This system sets a clear goal for customers, making them more likely to complete their purchases in order to earn more points or discounts.
Offer alternative payment methods
By providing multiple payment methods, businesses can cater to a wider range of preferences, increasing the likelihood that customers will find a method they’re comfortable with and proceed with their purchase.
Beyond standard credit card options like VISA and MasterCard, stores should consider offering additional methods such as online banking, third-party payment services, cash on delivery, or even “Buy now, Pay later” plans. These options not only make the payment process more convenient but also help alleviate concerns about credit card security, allowing customers to feel more at ease when entering their payment details.
Moreover, third-party payment services often offer incentives like cashback programs, which add extra value to the customer’s purchase and create a more positive shopping experience.
Use exit intent pop-ups
Using exit intent pop-ups is an effective method to reduce cart abandonment by engaging customers right before they leave your site. These pop-ups are triggered when a visitor's cursor moves away from the active window, indicating they are about to exit. By displaying a targeted message, such as a discount code or free shipping offer, businesses can entice potential buyers to reconsider their decision and complete the purchase.
Exit intent pop-ups can be customized based on the user’s behavior or the specific page they are viewing. For example, if a customer has added items to their cart but hasn’t completed checkout, the pop-up can provide a special incentive, like a discount or limited time offer, to encourage them to finalize the sale.
Offer easy returns policy
Complex return processes often create friction in the buyer’s journey, leading customers to leave items in their carts rather than completing their purchases. By implementing a straightforward and customer-friendly return policy, you can significantly alleviate these concerns, making the checkout process much smoother.
As Sanaz Hajizadeh, former director of product management at Happy Returns, states, “When customers know that they can get their money back just as easily as they can spend it, they’ll shop more confidently and spend more.” This assurance not only boosts customer confidence but also encourages them to complete their transactions, knowing they have a safety net if the product doesn’t meet their expectations.
Giving out the discounts to reduce the total cart amount
Offering promotional programs, such as discount codes or free shipping, can effectively encourage customers to complete their purchases and reduce cart abandonment. When customers perceive that they are getting a deal, it creates a sense of gaining value rather than simply spending money. This psychological boost can motivate them to finalize their transactions.
To maximize the effectiveness of these promotions, consider setting minimum purchase requirements or suggesting the purchase of specific products to qualify for the discount. This approach not only incentives customers to increase their order value but also ensures they feel satisfied with the savings they’re receiving. By sharing the cost of promotions and free shipping, businesses can offset their expenses while still providing a compelling offer that delights customers.
For those looking for an efficient way to implement these strategies, our Salepify is a great solution. You can take advantage of those key features to not only reduce your cart abandonment but also boost your sales incredibly:
- Free gifts for orders meeting a minimum cart value or quantity.
- Package deals with discounted pricing to encourage bundled purchases.
- Volume discounts for larger orders, appealing to price-sensitive customers.
- Free shipping when customers reach a specific spending threshold, motivating them to add more items.
(Source: https://biscottiz.hu)
Be transparent about all costs
When displaying prices on product pages, it’s important to clearly communicate that the listed price does not include additional charges, such as taxes. If possible, show both the inclusive and exclusive prices to ensure customers are fully aware of the total amount they will need to pay. Presenting an artificially low price can lead to feelings of deception, causing customers to abandon their carts in frustration.
Similarly, providing estimated shipping costs can help manage customer expectations. You can offer a general range based on the delivery service used, along with specific pricing information for various regions or countries. It’s crucial to provide updated shipping costs immediately after the customer enters their shipping address, as this transparency fosters trust and encourages shoppers to complete their purchases.
Conclusion
In summary, addressing cart abandonment is essential for Shopify store owners to reclaim lost revenue and improve customer satisfaction. With a high percentage of shoppers leaving their carts without completing purchases, implementing strategies to enhance the shopping experience is crucial. Ultimately, taking proactive steps to reduce cart abandonment not only drives sales but also fosters long-term customer loyalty.
For those customers who are interested in Salepify, you can check out our Salepify demo store (password: 1) here for more information and practical experience.