Last week, we had a post on what things online shoppers want to retailers to improve upon. One of the biggest problems many online retailers are dealing with is shopping cart abandonment. New research has been developed that shows why digital shoppers don’t complete the sale.
• 70% of consumers have add items to their online shopping carts but have not complete the purchase – the total cost to US online retailers is estimated to be over $18 billion
• 56% were not ready to purchase but wanted to save the cart for later
• 55% did not complete the sale because they thought shipping costs were too high
• Just over half didn’t complete the purchase because their order was not large enough to qualify for free shipping
• Four in 10 said shipping and handling costs were listed to late
What Does This Mean To You
You’ve taken the time to develop an ecommerce solution and committed resources to driving traffic to your site. Now you’ve put all this effort in and customers are not completing the sale – evidence is point to shipping being the main reason. There are several strategies you can use to help sway customers into completing the sale.
• Offering free shipping may not be financially feasible for all businesses, but how valuable is a database of shoppers to your company. You can offer free shipping to customers if they join a loyalty club or at least sign up for alerts for your business. This not only gives them the free shipping they want, it helps your business keep customers engaged and forms a relationship with them
• Develop a shopping cart alert system. If you’ve got the email address of customers who have not completed a sale, contact them and offer a discount for them to finalize the purchase
• Investigate lower cost shipping alternatives or local pick-up options to help consumers save money
• Create a referral or social media program where shoppers can earn discounted shipping for directing friends & family to your business
Your online business can be an important revenue stream – if customers complete the sale. Take some time to go through the checkout process and make sure it runs smoothly. Also do this with friends and employees. You may find that there are hiccups in the process or those removed from the site may find it clunky or not user friendly. For more information on developing online revenue, please contact your Sun Sentinel representative or:
Advertising Marketing Manager
Source: eMarketer; comScore; Listrack