An Abandoned Cart is an online shopping cart where a potential customer adds items but doesn’t complete the purchase.
Cart abandonment is one of the biggest problems for merchants selling online as it leads to revenue loss and missed opportunities. It's similar to when people shop in a physical store and add items in their basket but leave them at the checkout counter.
Why Abandoned Carts Happen:
Cart Abandonment happens due to;
Unexpected charges such as shipping fees or taxes
Lack of payment options
Checkout process is complicated or time consuming
Concerns regarding the Website’s security
Simply browsing without the intention of purchasing
The Impact on Businesses:
Abandoned carts are a significant problem for online stores, with global abandonment rates averaging around 70% (according to Statista). This means businesses lose a large portion of potential revenue from incomplete transactions.
How Businesses Can Reduce Cart Abandonment:
Strategies include:
Simplifying Checkout: Make sure that the process is quick and user-friendly.
Transparent Pricing: Display all the costs upfront to avoid surprises.
Offering Multiple Payment Methods: Provide flexibility for customers.
Follow-Up Emails: Use automated email reminders to encourage customers to return and complete their purchase.
Discounts or Incentives: Offer discounts, free delivery, or promotions to encourage customers to complete the checkout process.
