Cart Abandonment Can Be Reduced – Here’s How.
Imagine losing out on thousands (and possibly millions) of dollars each year in sales because people put products in their online shopping carts but never finished the sale.
“The average website can experience anywhere from 70 to 75 percent abandoned cart, some are as high as 80 to 90 percent of people leaving and not purchasing,” said Eva Hodgens, vice president of fulfillment at Take 5 Media Group.
Cart abandonment is a huge problem faced by many online retailers – from finance to fashion and more (for abandonment rates by industry see Cart Abandonment Statistics).
In terms of dollars lost, those numbers are huge too. Marketing Land estimates that “companies lose $18 billion in sales revenue each year from cart abandonment, with over $4 trillion worth of merchandise predicted to be abandoned in online shopping carts” in 2017.
The problem is mind-boggling: ecommerce is booming (see stats below), mcommerce (mobile commerce) is picking up steam yet at the last minute, people bail out on the sale and leave your website.
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The Overall Ecommerce and Mcommerce Landscape
eMarketer’s Worldwide Retail and Ecommerce Sales: eMarketer’s Updated Forecast and New Mcommerce Estimates for 2016 – 2021 shows impressive numbers:
- In 2017, retail ecommerce sales worldwide reached $2.3 trillion, a 24.8% increase over the previous year
- Mobile was a key factor, as mcommerce accounted for 58.9% of digital sales
- Total retail sales last year reached $22.5 trillion, up 5.8% over 2016
- Ecommerce made up 10.2% of total retail sales worldwide in 2017, up 8.6% from 2016
- Global mcommerce sales rose 40.3% last year to $1.3 trillion, representing 6.0% of total retail expenditures
- Mcommerce will continue to rise and by 2021 will account for 72.9% of the ecommerce market
Some Reasons for Cart Abandonment
There are several reasons shoppers are leaving their carts high and dry. Some people don’t trust a website with their credit card info, while others aren’t happy with the site’s return policy. Another reason could be a lack of payment options (e.g., no PayPal.)
There’s also those everyday life reasons. “You’re busy, working, trying to grab lunch and you’re shopping online and all of a sudden you’re like wait, I have no time for this so you leave the website,” said Michael Boy, director of fulfillment at Take 5 Media Group.
“Another factor is research,” Boy noted. “People research the product looking for a cheaper price or free shipping, and want to know what are the taxes, what’s this going to cost me at the end of the day.”
For a more in-depth look at why people abandon their carts and leave websites see Shopping Cart Abandonment Reasons.
Cart Abandonment Solutions
While we’ve presented a fairly grim picture so far, all is not lost. There are several steps you can take to alleviate cart abandonment and recover many of those lost sales.
Besides website analytics (finding out where people are leaving your site during the check-out process) and offering deals you should also consider email and re-engagement campaigns.
Both are a great way to remind customers that they left products in their cart and entice them to come back to your site and finish the purchase.
Take 5 Media Group takes a unique, multi-channel approach to shopping cart abandonment with its new Web Interceptor™.
“There are abandoned cart programs out there that many sites use, but the retargeted person needs to be a subscriber, or be in your client CRM database in order to re-engage through email and they are anonymously retargeted through banners, social,” said Take 5’s Eva Hodgens.
“We’re basically capturing users who have come to your website – not a buyer, not a client, not in your CRM database – and we’re able to append and match that cookie ID back to our data house and re-engage with those users in any and all channels,” continued Hodgens.
For more tips to lessen cart abandonment and to see how Web Interceptor works see Cart Abandonment Solutions.
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Take 5 Media Group – Digital Marketing & Audience-Building Experts
Take 5 Media Group is one of the nation’s leading compilers of consumer information. We build highly-targeted audiences based on that data and use our cutting-edge marketing channels – Web Interceptor, email, display ad and social media retargeting, geo-fencing, content marketing and others – and get your message to those audiences.
To find out more, call Take 5 Media Group, Boca Raton, Florida, 561-819-5555, New York at 917-201-7451, or visit our website at Take5mg.com.