Ecommerce shopping cart abandonment rates have jumped by nearly 20 percentage points – from the low-to-mid 50s to the low 70s – during the last two years. While a closer look reveals the facts probably aren't as bad as the numbers indicate, they do represent a call for marketers to take a closer look at their checkout structure.
The jump in abandonment rate, according to a white paper from Bronto Software, which offers a marketing platform for commerce, is in part explained by the company citing research from two different sources, and at least part of it may be attributable to different research methodologies. But part if it is also likely due to changing customer behavior, according to Jim Davidson, Bronto's manager of marketing research.
"There has been a shift in consumer behavior – not just how they shop online, but how shopping, meaning from mobile devices and tablets," Davidson says, adding that there have also been shifts in the location of shoppers. "People may be shopping during lunch hour and going home to do more research before completing their purchase." These activities can artificially increase cart abandonment rates.
The culture of readily available discounts hasn't helped, either. Consumers have been trained to look for promotional codes, or to comparison shop, or investigate tax- or shipping-cost free purchase options. All of these contribute to their setting up shopping carts while delaying the final purchase.
Of course, some marketers' practices can result in flat-out abandonment. Bronto analyzed 100 ecommerce sites, and found that 9% required users to create an account before a transaction could be completed – there was no guest checkout option. And some – Bronto did not provide a percentage – impede the process by diverting shoppers from order completion, such as by making irrelevant offers for branded credit cards or loyalty programs.
Asking for information a customer is not ready to give, or that is not relevant to the purchase, can also serve as a deterrent to purchasers. "Having data on your customers is important, but at this part of the purchase funnel it can be a barrier," says Davidson. Simple contact information, such as an email address, can be requested after a purchase is completed – and justified by mentioning shipping confirmation notification.
In seeming contrast to the increasing abandon rates mentioned previously, marketers have taken steps to streamline the checkout process. Many have reduced the number of screens between shopping cart and order confirmation, with the majority requiring a total of five or six.
The Bronto white paper notes that while simplification is usually a good impulse, there are hazards to jamming too many options onto a single page: A two-page confirmation process may include a page with so many options that shoppers become overwhelmed and abandon out of confusion.
There have been innovations in behind-the-scenes processes, such as integrating commerce platforms with communication options. Doing so has allowed merchants to link items in abandoned carts with post-abandonment communications when the merchant has managed to gain contact information such as email addresses.
But just because these technologies exist doesn't mean marketers are making use of them. Only 13% send out such communications. "I believe a lot of brands still think [linking the information] is a major hurdle, and that is why we are seeing so few sent out post-abandonment emails," Davidson says. "We typically see 15%-20% sales rates on post-abandonment emails. If marketers aren't sending them out, they are missing out on a lot of revenue."
Tactics for Reducing Abandonment
Other tactics marketers can use to increase sale completion include providing a photograph of items in the cart, in order to maintain customer enthusiasm throughout the purchase process.
The company also urges marketers to provide easy order modification. While some marketers do allow consumers to easily change quantity of items desired, fewer allow purchasers to make last-minute additions based on, for instance, color or size of item. These would seem to be no-brainers for apparel marketers.
"Promoting accessories or care kits would be more valuable than changing quantities," Davidson says, adding that customers should be able to add suggested items without leaving the checkout page.
Finally, marketers should avoid giving shoppers sticker shock by calculating shipping costs or taxes only at the end of the checkout process. Marketers seem to understand this: Nearly two-thirds offer actual or estimated shipping costs before the actual checkout process begins.
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