Why do prospective customers abandon their carts before completing the payment process?

Why do prospective customers abandon their carts before completing the payment process?

تم النشر 3 years ago

15 min read

Salla Blog

Salla Growth Team

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In brief

In brief

Imagine if shopping in malls was like shopping online. You walk into a department store, start filling your cart with everything you desire, and suddenly a child appears in front of you so you start playing with them, then your phone rings,...

Imagine if shopping in malls was like shopping online. You walk into a department store, start filling your cart with everything you desire, and suddenly a child appears in front of you so you start playing with them, then your phone rings,...

Imagine if shopping in malls was like shopping online. You enter a department store, start filling your shopping cart with everything you desire, and suddenly a child appears in front of you, so you start playing with them. Then your phone rings, and you completely forget what you were thinking of buying, and you leave the store, leaving your shopping cart behind.

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Why do potential customers abandon? This scenario might seem completely unrealistic, but unfortunately, it happens all the time in the world of e-commerce. Despite online store owners implementing the best marketing strategy to target and attract customers, the user visits the site, starts shopping, and then suddenly leaves the cart easily for no apparent reason, and perhaps never returns.  

This is the realistic scenario, and one of the most important and disturbing problems that bother online store owners, and they seek to overcome it in every way. I know it is impossible to eliminate it completely, but we can certainly reduce it by improving the user experience on your store. In this article, I will review with you the most famous reasons why users abandon your cart before completing the payment, and how to address that in simple steps.

When does shopping cart abandonment occur? 

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Shopping cart abandonment occurs when shoppers move an item or several items into your store's shopping cart, but leave the site before finishing the purchase process.

How is the shopping cart abandonment rate calculated on e-commerce stores?

The shopping cart abandonment rate is calculated by dividing the total number of completed transactions by the total initiated transactions, then multiplying it by 100. Why potential customers abandon will determine this rate, which is the percentage of users who have the intention to buy, but did not complete the process to the end.

Shopping cart abandonment rate = (Total number of completed transactions * Total initiated transactions) / 100.

Why does shopping cart abandonment occupy all this importance?

Why do potential customers abandon? Calculating the shopping cart abandonment rate is one of the most important metrics to track for e-commerce sites because a high abandonment rate may indicate that the user experience is poor or that there is a problem with your store's sales funnel.

Reducing shopping cart abandonment leads to more sales and revenues, so improving user experience and reducing cart abandonment rates is a key point that owners and managers of e-commerce stores must focus on.

Shopping cart abandonment statistics: 

We can consider shopping cart abandonment the biggest obstacle to retail trade in e-commerce. According to data from Listrak, a retail marketing company that tracked shopping cart abandonment, "the average rate of users who abandon their shopping cart before purchasing is 81%". Meaning, most e-commerce sites lose at least three-quarters of users due to shopping cart abandonment. In the worst case, this means that four out of five shoppers leave your cart before actually buying anything.

Here are some more realistic data on shopping cart abandonment:

  • In March 2020, 88.05% of online shopping orders were abandoned, meaning they were not converted into a purchase. Furthermore, outer motor vehicles recorded the highest cart abandonment rates among all measured categories with an abandonment rate of 96.88%.

  • E-commerce stores lose $18 billion in revenue every year due to shopping cart abandonment. 

  • The average cart abandonment rate on checkout pages reaches 87%, and this rate rises on Fridays, Saturdays, and Sundays to almost 90%.

  • Through my Google research, I found many different data in various studies, showing abandonment rates ranging from 56% to 81%. However, I believe that the recent data from the Baymard Institute paints the most accurate picture.

They calculated the data across 41 different studies and found that the average cart abandonment rate is just under 70%. This means that approximately seven out of 10 shoppers will not complete their transactions, and this is a very frustrating figure for e-commerce store owners. 

 12 reasons why customers abandon the shopping cart on your e-commerce store

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Now, I will review with you 12 of the most important reasons discovered through statistics and studies to answer the question: Why do potential customers abandon? These lead to a high percentage of customers abandoning your cart before completing the payment process, along with how they can be addressed.

1- Extra costs are the primary reason why shoppers abandon the shopping cart

The Baymard Institute conducted some in-depth research to identify the reasons for cart abandonment by tracking the average global shopping cart abandonment rate for 7 years.

Although there are many different factors, extra costs such as shipping for e-commerce stores, taxes, and fees were the biggest influencing factor, as 50% of survey respondents stated this was the reason they abandoned the cart.

The average shopping cart abandonment rate is currently 68.8%. Why do potential customers abandon? After going through several issues to find the product and add it to the cart, 2 out of 3 users of your store choose to abandon the purchase process!

Therefore, you must be transparent when displaying extra costs to gain your customers' trust; this is what the deodorant company Myro does on its checkout page.

Myro displays the total amount accurately, including shipping and taxes, so the buyer knows exactly what they will pay. This way, the customer will not be surprised. Everything is clear in front of them. Hidden costs cause immediate annoyance to users and have often been the reason they regret purchasing something.

Statistics also indicate that free shipping plays a major role in motivating users to finalize the purchase, so you should consider offering free or at least discounted shipping. 79% of people are more likely to shop when shipping is free. If you are not doing so already, consider offering free shipping as an incentive for your customers to reduce the cart abandonment rate.

2- Being forced to create an account is the second reason for shopping cart abandonment

Why do potential customers abandon? They prefer doing things quickly and getting immediate results. 34% of the participants in the previous survey said they abandoned the shopping cart due to the request to create an account. It is highly frustrating to fill the shopping cart and then be surprised that you must create an account first to complete the purchase.

Why should I go through all these steps to buy from you when this might be my first and last experience on your store? It seems that more than a third of online shoppers share this same feeling.

Therefore, you should make the purchasing process easier without having to put effort into creating an account, just like

Jarir Bookstore does, making the customer experience on its store simple and smooth.

3- Usability across different devices

Mobile users have a higher abandonment rate of 85.65%. Barilliance says: "The smaller the screen size, the more likely the product will not be purchased." This is a major problem; mostly, a large number of digital buyers use smartphones more than computers for shopping, especially for the first time.

This highlights the importance of fully optimizing your store to be compatible with all types of devices. You can do this using the following methods:

  • Increase your site speed on mobile.

  • Condense your copy to include essential information only.

  • Use the "Mobile Accordion" feature to organize information effectively; keeping important elements in the visible part of the page.

The Khotwh online store is a great example of a brand that offers an ideal mobile experience. It is fast loading and features a simple, intuitive design with key elements above the fold.

It also uses the Mobile Accordion feature to quickly guide users to where they want to go.

4- Conducting research to buy later

Why potential customers abandon. I also recommend getting into the habit of routine A/B testing so that you can constantly improve the mobile experience and make it as seamless as possible.

It is impossible to eliminate all reasons for shopping cart abandonment and questioning why potential customers abandon. Often, customers add items to the cart to easily refer back to them next time; it is also common for users to return several times before buying.

The truth is that the majority of visitors will not complete their purchase immediately. Retail trends show a clear shift towards the "omnichannel shopper." Customers research first and often complete the purchase on a completely different device or channel.

In the recent study by Barilliance, they found that the most effective way to reduce cart abandonment and reduce the premise of why potential customers abandon the store is to move up using targeted customer service emails like "Email Cart" or "Visit Summary" offers. 

Redesigning such an image with content change 

Content:

Title: Send cart contents to your email

Text: When you write your email here, we will send the cart contents to it within minutes.

Boxes:  Type your email here  |  Send

Before the user leaves your store, you can launch a pop-up window like this one, offering to send the contents of the shopping cart to their email, giving them a chance to return to the store and giving you a chance to communicate with them after a while, whether by offering special deals or gifts. 

5- Concerns about payment security

Payment security is a major reason for shopping cart abandonment. There are some key flaws that make users worry about payment methods, including design flaws, outdated layouts, missing images, and the absence of an SSL certificate.

Bookings.com uses a variety of methods to build trust with its customers through live notifications and tags.

Why do potential customers abandon the store? There are many ways you can increase trust on your site. The easiest way to assure customers that your store is trustworthy is through social proof. These processes should be part of optimizing product pages: for estimate, use customer testimonials and product reviews. Provide full contact information, such as a phone number and photos of you and your team if possible. These factors suggest to your customer that they are dealing with a real person who cares about their experience and will care about their personal information.

6-  Absence of discount codes

Some customers hunt for deals. If they can't find a coupon or discount codes, they will go and look for one elsewhere.

According to Statista, 8% of customers indicate that failing to find a discount code is a key reason for abandoning the shopping cart, choosing to wait until they can find a discount coupon for any competing site.

Unfortunately, some sites encourage this by placing a search bar for the discount code near the checkout button. This way, you push them to exit immediately if they don't find the code!

The ideal solution is to constantly provide discount codes when possible, or permanently disable discount coupon and code buttons that make the user hesitate to pay. Personally, when I experience this, the first thing that comes to mind is: "There are discount codes, why should I pay the full price now?" and I prefer to wait to obtain one of them. 

7- Unavailability of fast shipping

You have surely noticed that customers care a lot about shipping. To the extent that the cost of shipping can be a main reason for abandoning the cart, even shipping speed also poses a great threat to major purchases.

If your store is unable to deliver goods in a timely manner, many customers may be forced to abandon your cart, especially during holidays and occasions.

Try to provide fast shipping, even if you have to charge extra for express shipping. Customers are more willing to spend on fast shipping; you will certainly benefit greatly from offering this option.

8- The site has errors/crashes.

Site errors, crashes, and load times are major obstacles to completing a purchase because they contribute to a feeling of insecurity on the site. Therefore, you must keep in mind that improving the user experience is crucial so we do not return to questioning why potential customers abandon the store. 

Make sure to browse all pages of your site regularly and listen to customer alerts and feedback to ensure that all pages of your site are working well without errors.

You should perform these checks across a variety of screen sizes, especially as the importance of smartphones continues to grow. You can check site speed through a number of free services, such as Pingdom and Google Pagespeed Insights.

9- Unsatisfactory return and exchange policy 

Up to 66% of shoppers say they would spend more with a convenient return policy. 

Unfortunately, many stores place strict restrictions on returns. This can take two forms. First: policies that take a long time. Second: those policies that charge fees for returns, usually in the form of shipping.

The best solution: make sure you can track the number of returns and associated costs. Then start offering free 30-day shipping. Run a test for a month or two, and see if this strategy is profitable or not.

10- Credit card was declined

The worst nightmare a buyer who has decided to purchase can face is having the transaction canceled and their card declined for any reason. Therefore, it is best to provide the user with more than one payment method; this will make their experience better and more comfortable.

11- Lack of helpful customer support

Customers expect service and convenience. In a study conducted by LivePerson, they found that 83% of online shoppers want help while on the site. More than half (51%) said they are more likely to make a purchase if the site has support like live chat during the session.

The solution is to try to support your customers in every way possible. If you don't offer instant chat, try it now, or use chatbots. Invest in the technology for a month or two, and measure its impact on sales.

La Roche-Posay shows us a great example of this by using chatbots, which converse with customers and help them solve the problems they face.

Try interacting with it; you will find that this chatbot is perfectly set up to understand user needs and problems, and guide them to the best solutions and products.

12- Ambiguity of call-to-action phrases on checkout pages

Many sites fail to include call-to-action (CTA) phrases on checkout pages. Assuming that if a customer adds something to the cart, they won't need any actual incentive to buy is a grave error in a marketer's mindset. Quite the contrary, checkout pages are the ideal place to include strong and clear calls to action to help users complete the purchase process and ensure potential customers do not abandon the store.

Include strong calls to action on checkout pages, and do not distract the user. It is preferable to include only one call to action on each page.

Including strong call-to-action phrases on checkout pages is very important. Equally important is ensuring that these CTA messages are consistent with your site and the marketing materials you use. 

Remember that you aim to provide a continuous, seamless experience from discovery through to purchase. If you change the tone of call-to-action phrases on your checkout pages, it might seem disruptive to visitors, even if they don't immediately understand why. It is also important to make these call-to-action phrases as clear as possible.

Keep messages consistent across all calls to action, right down to the payment process. If you prefer a friendly, connected tone in your marketing materials, maintain this gentle tone during the checkout process. However, if you are leveraging urgency or another incentive, continue with this method during checkout. 

Also, make sure to use appropriate and consistent phrases depending on where the potential customer is in the process, especially if you are using a progress indicator. Do not make assumptions about users' understanding of your site details; you must know marketing strategies to increase your sales.

The 8 most important stages of the customer journey for your online store

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It is extremely frustrating to succeed in moving a shopper through the sales funnel and creating promotional offers attractive enough to spark their interest, only to lose them at the point of purchase. Simply, you can reduce the number of people who abandon the shopping cart on your site if you address the main reasons why potential customers abandon the store and resolve them. All you need is to follow the reasons below and address them as we mentioned above:

1- Extra costs are the primary reason why shoppers abandon the shopping cart. 

2- Being forced to create an account is the second reason for shopping cart abandonment.

3- Usability across different devices. 

4- Conducting research to buy later. 

5- Concerns about payment security. 

6-  Absence of discount codes. 

7- Unavailability of fast shipping. 

8- The site has errors or crashes. 

9- Unsatisfactory return and exchange policy. 

10- Credit card was declined. 

11- Lack of cooperation from the customer support team.

12- Ambiguity of call-to-action phrases on checkout pages.

If your store is on the Salla platform, we will save you a lot of trouble. We provide all our stores with the Abandoned Carts Reminders feature. Through this page, you can identify the number of users who left your cart, along with several details about them, such as their number, checkout time, and more. This gives you another chance to bring them back to your store.

Create your store now for free through Salla platform, and enjoy integrated services with no sales commission.

How to track your progress?

How to track your progress?

Track your weekly order completion rate in the Salla dashboard and compare performance before and after each change. Focus on mobile, which accounts for most visits across Saudi Arabia and the GCC. Small, continuous improvements are easier to measure than major changes.

Track your weekly order completion rate in the Salla dashboard and compare performance before and after each change. Focus on mobile, which accounts for most visits across Saudi Arabia and the GCC. Small, continuous improvements are easier to measure than major changes.

Salla Blog

Salla Growth Team

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Turn what you read into real sales

Start your store on Salla today and put what you learn into practice, step by step.

Turn what you read into real sales

Start your store on Salla today and put what you learn into practice, step by step.

Turn what you read into real sales

Start your store on Salla today and put what you learn into practice, step by step.

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