Abandoned cart – The eshop curse

Disclosure: This article concerns all eShops as a strategy, but its applications concern Magento eShops, on which we specialize (another time, ask us why we love Magento ♥)

 

Abandoned cartA universal problem

Abandoned cart or the abandonment of the basket is a matter of concern for every eShop owner who respects himself. And for the sake of the argument, you can notice the search increase for the term “cart abandonment” in the last 12 months. It is obvious. Houston we have a problem. A problem costing an average of € 3 trillion a year.

google-trends-stat-cart-abandonment
Searches for the term Cart abandonment increase over time.

 

What is the cart abandonment? How will I calculate it?

Shopping cart abandonment is when the user has added items to his cart but leaves and does not complete the transaction. To calculate this, divide the number of incomplete transactions with transactions at which at least one item was added to the basket.

Within Google Analytics, you can see the above percentages in the Conversions> E-commerce> Shopping Behavior tab.

For example, if you had 2000 users who added products to the cart and only 300 orders last month, then the drop-out rate is: 1700/2000 = 85%

 

Abandoned cart & eShop marketing

But the loss of potential customers is not the only problem. For the eshop that carries out marketing actions and especial pay per click advertising, the basket dropping curse takes avalanche dimensions.

Whether you are doing eshop marketing in-house or in collaboration with an eCommerce agency, a high cart abandonment will bring you a headache as you invest in marketing, as on the one hand you will attract prospective customers to your nice eShop (and perhaps at a high cost per click) , but on the other hand you will not have the result you want in sales. There you are losing multiple because you pay to attract users who do not actually buy.

Cart Abandonment – What is a reasonable rate of cart abandonment?

70% – This is the average shopping cart abandonment rate, according to 41 surveys that took place in recent years, which found abandon rates of 50 to 80%. According to another survey in 2018, the percentage in the retail sector is 75%. The bad news is that these rates are rising constantly.

 

Why do users leave the basket? – 5 factors

Having developed hundreds of Magento eShops and having studied eShops on other platforms (Shopify, Prestashop, WooCommerce), we have identified and we present you the most common mistakes depending on their significance.

 

Factor 1 – Hidden costs: In over 60% of cases, the most important factor, according to our own data and according to all relevant surveys, is the hidden costs that the user sees during the ordering process. In the retail industry, this usually involves shipping costs. Solution: Wherever you can, include the shipping cost in the price of the product. Otherwise, please state clearly on each eShop page that the customer is entitled to free shipping from an order amount upwards. And make this amount feasible. In addition, always give the total cost of the purchase along with the shipping costs, payment on delivery costs and other charges to the customer at the checkout.

Factor 2 – Account creation required: eShops that require an account creation by the user in order to be able to order and do not give him/her the option to continue with the order without it are not effective.  This factor is the most important in 30% of users.

Solution: Give the option to proceed with an order without creating an account.

Factor 3 – Time consuming order process Have you visited these eShop where step by step, slowly and
ingeniously can one complete the order? Once upon a time this was common in almost all eshops, but now technology has evolved.

Solution: One-Step Order. Ordering in one step is now necessary.

Check out some eShops we have developed with one-step order: HaritidisA-PharmacyBrokers Jeans

Factor 4 – Checkout confuses the user

Have you ever spent time on an eshop and at the point where you get to complete the order, you try to enter your data and it keeps displaying errors?

Solution: Give the user instructions on how to fill in the details you need. If you only want Latin characters, write it BEFORE the user completes the fields and an error is displayed. If you want a specific writing style for the phone number, for example, with +30 in front, make this clear BEFORE the user completes this field. In other wordsdescribe what the user will need to do in each field.

Factor 5 – Refunds

Two possible errors here: Whether you do not write down the return policy at all, or you write the policy but it does not satisfy the user.

Solution: Always make your return policy clear. In addition, find a balance point in your refund policy so that you can avoid a lot of refunds and costs on the one hand, and on the other make users feel secure to order from you.

These are the main reasons for cart abandonment. Solving all the above issues, you can narrow down cart abandonment and increase conversions. Nevertheless, there is always another factor that we cannot influence much. When users browse in an eShop just for fun or for the pleasure of the e-shopping process, they are most likely to leave the products in the basket.

And if all the above seem time consuming, the good news is that you can have dynamic remarketing that allows you to target users who have left their shopping cart or they’re just looking at products, and show them the same products again, perhaps with some extra discount .

Where will you get started?