Shopping cart abandonment reasons and how to reduce them - e-commerce CRO tips

Summary

In this video, Punit Tandon of Young Weapon Project's YouTube channel discusses the high rate of cart abandonment on e-commerce websites, where 70% of customers add items to their cart but fail to complete the purchase. He identifies common reasons for this behavior, such as insufficient product information, complex checkout processes, limited payment options, and unexpected additional fees. Tandon offers solutions to reduce abandonment, including improving product descriptions, simplifying the checkout process, offering multiple payment methods, and being transparent about additional costs. He also suggests using analytics tools to identify and fix issues in the sales funnel.

Takeaways

• 🛒 Cart Abandonment is Common: 7 out of 10 people add products to their cart but don't complete the purchase.
• 📈 Importance of Reducing Cart Abandonment: It's crucial for digital and performance marketers to reduce cart abandonment to improve ROI and conversions.
• 🔍 Identifying the Problem: Often, the issue isn't with the ads but with the user journey after they click on the ad and visit the website.
• 📚 Product Description Matters: Clear and detailed product descriptions, images, videos, and benefits are vital to convince customers.
• 📷 High-Quality Visuals: Invest in good images and videos to showcase product usage and avoid poorly edited stock images.
• 🗣️ Social Proof: Reviews and testimonials are essential as they provide social proof and build trust with potential customers.
• 🔄 Simplify Checkout Process: A complex checkout process can lead to higher abandonment rates; aim for a maximum of four steps.
• 🛂 Reduce Friction: Ensure the checkout process is easy to navigate and that the billing form is concise, only asking for critical information.
• 💳 Accept Multiple Payment Methods: Offering a variety of payment options can prevent customers from abandoning their carts due to unavailable preferred methods.
• 💵 Be Transparent with Fees: Unexpected additional fees at checkout can deter customers; it's better to disclose potential costs upfront.
• 📊 Use Analytics Tools: Utilize tools like Google Analytics to identify and fix issues in the conversion funnel.

Q & A

What is cart abandonment and why is it significant in e-commerce?

Cart abandonment refers to the phenomenon where customers add products to their shopping cart on e-commerce websites but do not complete the purchase. It is significant because it represents a high rate of potential sales that are lost, with industry averages showing around a 70% cart abandonment rate.

Why might customers not be convinced enough to make the final purchase on an e-commerce site?

Customers might not be convinced due to insufficient product information, lack of product images or videos, unclear benefits, or missing social proof such as reviews and testimonials.

How can product copywriting and page structure help reduce cart abandonment?

Product copywriting and page structure can help by providing detailed product information, highlighting benefits in bullet points, investing in quality images and videos, and including realistic reviews and testimonials to build trust.

What is the recommended maximum number of steps in the checkout process to reduce cart abandonment?

The recommended maximum number of steps in the checkout process is four, as each additional step or complexity can increase the likelihood of cart abandonment.

Why is it important to keep the checkout process simple and easy to navigate?

A simple and easy-to-navigate checkout process reduces friction along the user journey, making it more likely that customers will complete their purchase.

What is the impact of not accepting multiple payment methods on cart abandonment?

Not accepting multiple payment methods can lead to cart abandonment if customers cannot find their preferred payment option during checkout.

How can e-commerce websites select the right payment gateways to cater to their customers' preferences?

Websites can select the right payment gateways by understanding the popular payment methods in their target market and choosing gateways that support those methods, such as debit cards, UPI, or credit cards.

Why might additional fees at checkout cause customers to abandon their carts?

Additional fees, such as high shipping costs, taxes, or convenience fees, can be unexpected and unwelcome, leading customers to abandon their carts if they feel the total cost is too high.

What can e-commerce websites do to manage customer expectations regarding additional fees?

Websites can mention additional costs upfront, even if not exact, to prepare customers mentally for potential extra charges like GST and shipping.

How can analytics tools help in identifying and fixing issues related to cart abandonment?

Analytics tools like amplitude, Mixpanel, or Google Analytics can help identify where the sales funnel is leaking, allowing businesses to address the specific issues causing cart abandonment.

What is the role of social proof in the sales process and why is it important?

Social proof, such as reviews and testimonials, plays a crucial role in the sales process as it builds trust with potential customers, who often trust other people's experiences more than brand claims.