How to Stop Losing E-Commerce Sales at the Finish Line
The final leg of your ecommerce experience has a big impact on your business’s bottom line. In today’s omnichannel world, cart abandonment is a substantial issue impacting retailers – and losing sales due to cart abandonment can be catastrophic for ecommerce margins. In fact, according to Statista, 76.2 percent of online retail shopping carts were abandoned in 2017. This isn’t just the result of aspirational shoppers creating and abandoning carts on multiple websites, however. It’s influenced by a variety of factors. eMarketer reports that 81 percent of online shoppers have abandoned their shopping carts at one time or another due to frustration, lack of efficiency or even “just because”. With such a large percentage of sales being lost at the finish line, cart abandonment is not a phenomenon that retailers can afford to ignore.
All this said, there is some good news to keep in mind. The causes for cart abandonment can be easily remedied once you get down to the core issue that’s causing your customers to abandon ship. To further understand what these issues are, let’s explore the primary reasons customers abandon their online shopping carts to begin with – as well as how to modify your checkout process to increase your store’s conversion rates and profitability.
Realize the Cause of Cart Abandonment
Did you know that unexpected additional costs are the #1 reason online customers don’t go through with their intended purchases? In fact, in a recent study by Baymard, a whopping 60 percent of customers listed high add-on expenses as their reason for abandoning an online shopping cart instead of following through with their order. Customers were also motivated to jump ship because of a “too long/complicated checkout process” (28 %), or not being able to “see/calculate the total order cost up-front” (23%). This data points to a pattern of customers abandoning online purchases as the result of unexpected complications arising in the last leg of their shopping journey.
Identify Where You Lose Customers
If unexpected obstacles arise when your customers try to pay for their order, it’s going to result in lost profits for your business. Then the onus falls on you – the retailer – to reduce cart abandonment by creating a seamless checkout process… the kind that will motivate customers to complete their purchase with your brand. ConversionXL reports, “If you have high motivation and low ability (the action is difficult to do), what you’ll get is frustration.” The frustration that can arise when a customer is faced with unexpected expenses or tedious additional steps at checkout is exactly the type that causes customers to abandon their online purchases. Now ask yourself… does your checkout experience deliver frustration? Be honest… and don’t forget to look at your own data to give you a more concrete snapshot of this reality.
Implement a Comprehensive Solution
Reviewing your check-out experience with honesty and clarity is an important step in eliminating any challenges in your checkout process. To help gain a smoother checkout experience with fewer deterrents to potential customers, aim to go above and beyond what customers may expect. For example… what if you strived to create a checkout experience that can actually inspire customers to make additional purchases, as well as motivate them to purchase bigger-ticket items when they visit your online store? There is no limit to the ways that creating a stress-free checkout experience can help you boost margins for your online store… and offering customers an interest-free payment option that breaks down the price of your high-ticket items can help you achieve (and maintain) more profit for your business, as well.
Maximize Profitability in Less Time
Offering your customers the option to pay in installments with offerings like Quadpay lets them buy the items they love right away, with zero additional interest and minimal hassle. What does this mean for you? Quadpay motivates online customers to increase their basket size from 20 to 60 percent. By offering potential customers the option to choose Quadpay at checkout, you can also increase your website’s conversion rate by more than 20 percent! Plus, since customers get approved for credit instantly and there are minimal delays… meaning fewer lost sales. As Johannes Quodt, co-founder of Koio reports, “there’s no question that for a large number of our customers, using Quadpay is the difference between making or delaying a purchase.”
In conclusion, if you experience high rates of cart abandonment in your online store, there is no reason to keep allowing your checkout process to cut into your store’s overall profitability. If you fall into this category, it’s time to implement new payment technology to get your customers across the finish line. With instant approval and the option to pay for high-ticket items in 4, interest-free payments, Quadpay might be just the right solution to take your online store to the next level.