How To Reduce Online Shopping Checkout Cart Abandonment

How To Reduce Online Shopping Checkout Cart Abandonment

Are you frustrated that potential sales never convert into actual sales? You’ve tried everything—invested in SEO, enhanced your marketing, and refined your product—yet the sales boost remains elusive? Perhaps you are experiencing a high rate of checkout cart abandonment. 

Let’s solve that. This piece will help you reduce checkout cart abandonment, particularly:

  • Understanding Checkout Cart Abandonment
  • Why Customers Abandon Carts
  • 6 Strategies to Reduce Checkout Cart Abandonment
  • Case Studies of Successful Brands That Reduced Cart Abandonment

Understanding Checkout Cart Abandonment

Checkout cart abandonment occurs when a customer adds items to their online shopping cart but leaves the website before completing the purchase. 

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This issue affects nearly all ecommerce businesses, as consumers often need help to finalise their transactions for various reasons, including unexpected costs, complicated checkout processes, or security concerns. Cart abandonment represents a lost sales opportunity, reducing an online store’s overall conversion rate.

According to Baymard Institute, as reported by Tidio, the average cart abandonment rate is 70%, meaning 70 out of 100 consumers do not continue their purchase. That’s a massive untapped sales. Aside from that alarming figure, here are some more essential statistics about cart abandonment that can provide insight into approaching your business problem:

Highest Checkout Cart Abandonment Per Device

Image source: Barilliance

  • Hotjar reported that the industries with the highest cart abandonment rate are home furnishing (90.50%), automotive (85.97%), and jewellery (84.49%). 
  • With 91%, social media is the traffic source with the highest checkout cart abandonment rate. 
  • ContentSquare reported that consumers aged 25-34 tend to abandon their checkout carts the most. 
  • According to SaleCycle, as reported by Tidio, Sunday experiences the highest checkout cart abandonment, while Friday experiences the lowest. 
  • Forbes stated that global ecommerce sales would reach $6.3 trillion by 2024. Therefore, even small reductions in cart abandonment can significantly boost revenue.

Why Customers Abandon Checkout Carts

To effectively reduce cart abandonment, it’s crucial to understand why customers fail to complete their purchases and abandon their carts midway. Identifying these hindrances helps you implement targeted solutions to minimise drop-offs and increase conversions. Below are several common factors that lead to cart abandonment, many of which are preventable with the right strategies:

High Shipping Costs or Hidden Fees

Reasons for Online Checkout Cart Abandonment

Image source: Baymard Institute

One of the most common reasons for cart abandonment is unexpected costs, exceptionally high shipping fees or hidden charges that only appear during the final steps of the checkout process. Tidio reported that 48% of consumers get turned off by extra costs like high shipping and tax fees.  

Customers often feel frustrated or misled when the total price of their purchase increases unexpectedly, leading them to abandon the cart and seek alternatives elsewhere.

Complicated Checkout Processes

Lengthy or confusing checkout processes are another major contributor to cart abandonment. If customers have to navigate through too many pages or fill out excessive forms, they will likely abandon their cart significantly. 

The complicated checkout process happens because of a business’s hidden motive, such as data gathering. Stripe stated, “Businesses sometimes prioritise data collection over user experience or fail to optimise the checkout page.”

A smooth and intuitive process is essential to keeping customers engaged and leading them to complete their purchases.

Lack of Payment Options

Offering limited payment methods can deter customers from completing a transaction. Some customers may prefer specific digital payment methods; if those options are unavailable, they may abandon their cart. 

Providing a variety of payment gateways caters to different preferences and can reduce friction at this crucial stage. 

Security Concerns

Adding Trust Seals and Improving Security to Reduce Online Checkout Cart Abandonment

Image source: CXL

Many shoppers hesitate to enter their personal and payment information online, notably if the website lacks visible indicators of trustworthiness. When customers feel uncertain about the security of their data, they are more likely to abandon their carts rather than risk their sensitive information falling into the wrong hands.

This reluctance is rooted in a heightened awareness of online security threats, such as data breaches and identity theft, which can lead to severe financial and personal consequences.

The presence of visible security features on an e-commerce site can significantly improve consumer confidence. Key elements that contribute to a sense of security include:

  • SSL Certificates: Secure Sockets Layer (SSL) certificates encrypt data transmitted between the user’s browser and the web server, ensuring that sensitive information remains private and secure. 

Websites with SSL display a padlock icon in the address bar and use “https” instead of “http” in their URLs. Customers may hesitate to proceed with their transactions without this indication, fearing that their data could be intercepted during transmission.

  • Trust Badges: Displaying trust badges from recognised security companies or payment processors can reassure customers that their transactions are protected. These badges signify that the site meets specific security standards and has undergone verification processes. 

Common examples include badges from Norton, McAfee, or the Better Business Bureau. If shoppers do not see these badges, they may perceive the site as less credible and more prone to security risks.

  • Data Encryption Symbols: In addition to SSL certificates, showcasing data encryption symbols can further enhance customer trust. These symbols indicate that sensitive information, such as credit card details and personal data, is encrypted and stored securely. Customers are more likely to feel comfortable completing their purchases when they know that their information is being handled with care.

Forced Account Creation

Forced Account Creation Being a Reason for Checkout Cart Abandonment

Image source: Nngroup

Another major deterrent for customers is creating an account before completing a purchase. Many online shoppers prefer a guest checkout option that allows them to make a quick purchase without the hassle of registering or providing unnecessary information. Forcing account creation adds an extra step many customers would prefer to take.

Poor User Experience

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A poor user experience (UX) can make or break an online transaction. Customers will likely become frustrated and abandon their cart if the website is fast, responsive, and challenging to navigate. Factors such as slow-loading pages, unclear call-to-action buttons, and a lack of mobile optimisation can all negatively impact the overall experience, leading to lost sales.

Mobile users are susceptible to UX issues. Given that mobile e-commerce has reached USD 2.2 trillion in 2023 and is growing rapidly, businesses that need to optimise their websites for mobile devices risk alienating a significant portion of their customer base. A clunky or slow mobile checkout can quickly drive shoppers away, even if they are ready to purchase.

6 Strategies to Reduce Online Shopping Checkout Cart Abandonment

Optimising the Checkout Process

Consumers seek a seamless and frictionless experience that minimises effort and confusion. A streamlined and simplified checkout process enhances user satisfaction and significantly reduces cart abandonment rates, ensuring shoppers follow through with their purchases. Here are several effective strategies to create a smoother checkout experience:

  • Streamlined Navigation and Minimal Steps: Every extra click or step can increase the chance of abandonment. Limiting the checkout process to as few steps as possible is critical. A one-page checkout, where users can fill in all necessary information without multiple redirects, is often more successful.
  • Offering Guest Checkout vs. Forced Registration
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Checkout Cart Abandonment_ Guest Checkout vs Forced Registration

Image source: UserTesting

Many customers hesitate when forced to create an account to complete a purchase. Offering a guest checkout option removes this barrier, allowing users to complete their purchases quickly without unnecessary steps. Guest checkout should be the default option, and account creation should be gently encouraged after the purchase.

  • Auto-Fill Features: Auto-fill functionalities can significantly reduce friction during checkout. Customers can save time and effort by automatically filling in personal and payment information. This feature is essential for mobile users, who may find manually inputting their details tedious.
  • Progress Indicators

Adding Progress Indicators to Reduce Online Checkout Cart Abandonment

Image source: Comma Consulting

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Showing customers how far they are from completing their purchase via progress bars or step indicators reduces anxiety and keeps them engaged. When customers can see exactly where they are in the checkout process, they are less likely to abandon their cart midway.

Transparent Pricing and Shipping

Hidden fees are among the leading reasons consumers abandon their online shopping carts. When unexpected costs arise, it can significantly deter shoppers from completing their purchases. Therefore, pricing transparency is crucial for fostering trust and ensuring a positive shopping experience.

Customers appreciate knowing the complete breakdown of their expenses from the beginning of the shopping journey. When fees such as taxes, shipping costs, or additional surcharges appear only at the final stages of checkout, it can lead to frustration and a sense of being misled, prompting them to abandon their carts. To tackle this preventable issue, consider implementing the following solutions:

  • Show All Fees Upfront: Ensure all costs, including taxes and shipping, are displayed as early as possible—preferably before the final checkout screen. Transparent and upfront pricing builds trust and reduces the shock of seeing an unexpectedly high total.
  • Offer Free Shipping Incentives: Offering free shipping for orders over a certain amount can encourage customers to make larger purchases. This effort not only reduces cart abandonment but can also increase average order value.
  • Flexible Shipping Methods: Different shipping options, such as standard, expedited, or next-day delivery, cater to customers’ varied needs. Flexibility shows that you are accommodating different preferences and urgency levels.

Improving Payment Options and Security

Add Multiple Payment Options to Reduce Online Checkout Cart Abandonment

Image source: Ecommerce Guide

Another primary reason for the high cart abandonment rate is the limited payment methods available at checkout. Consumers today expect flexibility and convenience when making purchases, and offering a diverse range of payment options can significantly enhance their shopping experience. 

To increase your sales, you must provide various payment methods that resonate with your target audience, particularly those famous in your specific business area.

Here are several key points to consider regarding payment methods and their impact on cart abandonment:

  • Provide Various Payment Gateways: Include all major payment options, such as credit/debit cards, digital wallets (PayPal, Apple Pay, Google Pay), and Buy Now, Pay Later (BNPL) services like Klarna or Afterpay. Multiple payment options ensure customers can choose their preferred method, enhancing the overall checkout experience.
  • Local Payment Options: If you operate in specific regions or countries, consider integrating local payment options widely used by consumers in those areas. For instance, in some markets, services like Alipay or WeChat Pay may be essential for attracting local customers. This localised approach can help you build trust and encourage sales.

Here are the most popular payment methods per continent or region: 

Continent / Region Most Popular Payment Methods
North America
  • Credit/Debit Cards
  • PayPal
  • Digital Wallets
  • Buy Now, Pay Later
Europe
  • Credit/Debit Cards
  • PayPal
  • SEPA (Single Euro Payments Area)
  • Digital Wallets
  • Klarna
Asia
  • Digital Wallets
  • Credit/Debit Cards
  • Bank Transfers
  • PayPal
  • Paytm
  • Cash on Delivery
South America
  • Credit/Debit Cards
  • Digital Wallets
  • Bank Transfers
  • PayPal
Africa
  • Mobile Payments
  • Credit/Debit Cards
  • Bank Transfers
  • Cash on Delivery
Australia
  • Credit/Debit Cards
  • PayPal
  • Buy Now, Pay Later
  • Digital Wallets
  • Mobile-Friendly Payment Methods: Ensure seamless mobile integration with payment options such as Apple Pay, Google Pay, and other digital wallets that cater to mobile shoppers. Simple, quick, and secure mobile payments reduce friction and improve conversion rates.
  • Display Security Certifications: Prominently feature SSL certificates, PCI compliance badges, and other trust indicators on the checkout page. These certifications assure customers that their data is protected, which can build confidence and reduce cart abandonment.

Utilising Retargeting and Cart Recovery

Reducing Online Checkout Cart Abandonment Through Retargeting

Image source: Campaign Monitor

You may have enhanced your e-commerce store’s user experience with intuitive navigation, attractive design, and streamlined checkout processes. Yet, the cart abandonment rate is still high. This is not uncommon, as shoppers abandon their carts for various reasons. 

For instance, they may experience a change of heart regarding their purchase, or they might still be in the research phase, exploring multiple options before making a final decision. Additionally, external factors such as unexpected expenses, distractions, or even second thoughts about the product can all contribute to this behaviour.

The good news is that even after customers abandon their cart, there are still numerous opportunities to recover the sale through effective retargeting and recovery strategies. Here are several approaches you can take to re-engage these potential customers and encourage them to complete their purchases.

Email Retargeting

Email retargeting is one of the most effective strategies for returning customers to their carts.

  • Craft Personalised Cart Recovery Emails: Send personalised reminder emails based on the abandoned cart. Mention specific products left in the cart and create urgency through limited-time offers or low-stock warnings.
  • Timing and Frequency of Emails: The timing of cart recovery emails is crucial. The first email should ideally be sent within 24 hours of abandonment, followed by a second reminder within 2-3 days.
  • Offer Incentives: Including discounts or free shipping in the recovery email can entice customers to return and complete their purchase.

Retargeting Ads

Reducing Online Checkout Cart Abandonment Through Retargeting Ads

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Remarketing ads on platforms like Google and Facebook can effectively remind customers of their abandoned carts.

  • Use Remarketing Ads: Show targeted ads to customers who previously abandoned their carts to remind them of incomplete purchases. Displaying the products they left behind in the cart can rekindle their interest and prompt them to return.
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Exit-Intent Popups

Reducing Online Checkout Cart Abandonment Through Exit Popups

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Exit-intent popups are a last-minute effort to prevent cart abandonment.

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  • Offer Incentives with Popups: If a customer tries to leave the checkout page, display an exit-intent popup offering a discount, free shipping, or other incentives to encourage them to stay and complete the purchase.

Enhancing Mobile Checkout Experience

Mobile e-commerce reached USD 2.2 trillion in 2023 and is expected to have a market share of 62% in overall e-commerce by 2027. With the increasing number of mobile shoppers, optimising the mobile checkout experience is essential for reducing abandonment rates.

  • Ensure Mobile Responsiveness: Ensure the checkout page is responsive and adapts to different mobile screen sizes. Mobile optimisation should focus on clear buttons, fast load times, and a simple layout.
  • Offer Mobile-Friendly Payments: Digital wallets like Apple Pay and Google Wallet allow for easy, one-click payments on mobile devices, reducing friction.
  • Focus on Fast Load Times: A fast-loading mobile checkout page ensures customers can move through the process without delays, reducing frustration.

Proving a Real-Time Customer Support

Meteor Space said, “90% of customers in 2024 say that their experience with a brand’s customer service directly influences their purchasing decisions.” This staggering statistic shows the impact of helpful customer support on the user experience and your bottom line. 

Moreover, real-time assistance during checkout can prevent customer frustration and reduce cart abandonment. Here are some ways to provide helpful customer support:

Live Chat Integration

Live chat support during checkout can help answer any last-minute questions or concerns that could lead to abandonment.

  • Offer Real-Time Help: Customers often have questions during checkout that can cause them to hesitate. Live chat provides immediate answers and can guide them through the process.
  • Customer Support Availability: Ensure customer support is easily accessible during critical phases of the checkout process.
  • Ensure Easy Access to Support: Whether it’s through a chatbot, email, or live chat, having readily available support reassures customers, making them more likely to complete their purchase.

Chatbots for Quick FAQs

AI-powered chatbots can answer common questions quickly, reducing the need for human intervention.

  • Use Chatbots for Assistance: Chatbots can handle simple queries like payment options, shipping times, or returns, helping customers navigate the checkout process without delay.

Case Study: Brands That Succeeded in Reducing Their Online Shopping Checkout Cart Abandonment Rate

These brands succeeded in reducing cart abandonment through technological improvements, transparency, and personalisation strategies.

Case Study: ASOS

Case Study on Reducing Online Checkout Cart Abandonment_ ASOS

ASOS, a global online fashion retailer, faced a significant cart abandonment issue due to complicated checkout processes and unexpected costs. To combat this, ASOS implemented the following strategies:

  • Simplified the Checkout Process: They reduced the number of checkout steps and introduced a one-page checkout option.
  • Clear Pricing Transparency: The brand began displaying shipping fees and taxes upfront to eliminate surprise costs at the end of the process.
  • Results: These changes reduced cart abandonment rates and increased overall sales, proving that simplifying the checkout experience and improving transparency impacted customer conversion.

Case Study: Nike

Case Study on Reducing Online Checkout Cart Abandonment_ Nike

Nike, a major global sportswear company, used a combination of personalisation and technological improvements to reduce cart abandonment. Key strategies included:

  • Personalised Email Retargeting: Nike sent personalised recovery emails within 24 hours of cart abandonment, featuring product recommendations based on the customer’s browsing history.
  • Mobile Optimisation: Since many customers shopped on mobile devices, Nike enhanced its mobile checkout process by streamlining it and ensuring compatibility with mobile payment options like Apple Pay.
  • Progress Indicators: The company added progress bars during checkout to inform customers how far they were from completing their purchases.
  • Results: Nike saw a decrease in cart abandonment rates after these optimisations, mainly benefiting from the personalised retargeting efforts.

Love, Bonito

Case Study on Reducing Online Checkout Cart Abandonment_ Love, Bonito

Love, Bonito, a famous Singapore-based fashion brand, tackled cart abandonment by addressing user experience and offering attractive incentives:

  • Mobile-First Approach: Love, Bonito prioritised mobile optimisation, ensuring their mobile site was fast and easy to navigate. They integrated mobile payment options such as GrabPay and PayNow to facilitate smooth transactions.
  • Exit-Intent Popups: To capture customers about to abandon their carts, Love, Bonito employed exit-intent popups offering discounts or free shipping.
  • Results: The brand experienced a reduction in cart abandonment and saw a significant increase in mobile conversions, proving that focusing on user experience and incentives pays off.

Key Takeaways on How to Reduce Checkout Cart Abandonment

Simplify the Checkout Process

Streamline the checkout by minimising steps, offering guest checkout, and incorporating auto-fill features to make the process faster and more user-friendly.

Be Transparent with Pricing

Display all costs, including taxes and shipping, upfront to avoid surprising customers with unexpected fees at the end of the checkout process.

Offer Multiple Payment Options

Provide a variety of payment methods such as credit cards, PayPal, and mobile payments, ensuring customers can choose their preferred option for a smooth checkout experience.

Use Cart Recovery Strategies

Implement retargeting tactics, such as personalised cart recovery emails and exit-intent popups, to bring back customers who abandon their carts, offering incentives when appropriate.

Optimise for Mobile Devices

Ensure the mobile shopping and checkout experience is optimised for speed, simplicity, and mobile-friendly payment options like Apple Pay and Google Pay to cater to on-the-go customers.

Frequently Asked Questions

What are the main causes of online shopping cart abandonment?

Common reasons for cart abandonment include:

  • High shipping costs.
  • Unexpected fees.
  • Complicated or lengthy checkout processes.
  • Lack of preferred payment methods.
  • Forced account creation.
  • Concerns about payment security.

How can simplifying the checkout process reduce cart abandonment?

A streamlined checkout process with fewer steps, auto-fill features, guest checkout options, and clear progress indicators makes it easier and faster for customers to complete their purchases, reducing frustration and abandonment.

How does offering multiple payment options help reduce cart abandonment?

Providing various payment methods, such as credit cards, PayPal, and mobile payments, ensures that customers can choose their preferred, convenient payment option, which increases the likelihood of completing the purchase.

What role does transparency in pricing play in reducing cart abandonment?

Displaying all costs, including shipping fees and taxes, upfront helps avoid unpleasant surprises during checkout. This transparency builds trust and reduces customers’ likelihood of cart abandonment due to hidden fees.

How effective are cart recovery emails in reducing cart abandonment?

Cart recovery emails are highly effective. Sending timely, personalised emails reminding customers of their abandoned items and offering incentives like discounts or free shipping can bring them back to complete their purchases, significantly reducing abandonment rates.

About the Author

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Tom Koh

Tom is the CEO and Principal Consultant of MediaOne, a leading digital marketing agency. He has consulted for MNCs like Canon, Maybank, Capitaland, SingTel, ST Engineering, WWF, Cambridge University, as well as Government organisations like Enterprise Singapore, Ministry of Law, National Galleries, NTUC, e2i, SingHealth. His articles are published and referenced in CNA, Straits Times, MoneyFM, Financial Times, Yahoo! Finance, Hubspot, Zendesk, CIO Advisor.

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