In today's society, there is a desire for simplicity and convenience among consumers. As the demand for effortless shopping increases, e-commerce has risen up to become the perfect solution for both businesses and consumers. While brick-and-mortar shops are still prevalent, having an online presence is essential for all industries to scale faster and reach a broader audience. In the last decade, the e-commerce marketplace has grown significantly and its uncontrollable growth has resulted in extreme competition. This ongoing battle to attract potential shoppers had businesses innovating new marketing strategies to match the current consumer trends; from marketing emails, social media ads, influencers, to free trials. While all these marketing methods are suitable for some businesses, a much easier (and cheaper) way to attract customers is simply having a unique and seamless customer shopping experience.
Why do people abandon carts?
The appeal of online shopping lies with speed and convenience. A short and efficient customer journey is key to encourage instant purchases. When the customer's shopping journey involves page re-directs and unnecessary form-filling, they generally tend to leave before completing the purchase. This is called cart abandonment or also known as 'drop-offs'. According to a study gathered by Baymard, the average dropoff rate in the Asia Pacific region is at 76%. That means for every 100 visitors that visit your store, 76 of them walk away.
Let's explore the top reasons why customers abandon their shopping carts and 5 simple tips on how to encourage your customers to stay on your site and complete their purchase;
1. No hidden extra costs
It's estimated that 1 out of 4 customers drop-off because of unexpected extra costs at the checkout page. Customers tend to feel annoyed and unconvinced when they have to pay more than anticipated. Although some costs like shipping fees or taxes are unavoidable, clearly stating additional costs since the beginning creates a realistic expectation for the customer. This expectation translates to a transparent shopping experience that builds trust for your brand.
2. Being mobile-first
As most purchases are done on a mobile device nowadays, it's crucial for e-commerce platforms to ensure that their webpage is mobile-friendly at the very least. The Digital report by Hootsuite has recorded that Southeast Asia has the most engaged number of mobile users when compared globally. More than 90% of the region's mobile users are connected to the internet through some type of portable device. Ensuring that your store is compatible across all devices and having a mobile-optimized platform, can help you keep up with the consumer's trend which in turn, can generate revenue for your store.
3. Frictionless checkout process
One of the best ways to reduce cart abandonment is to eliminate any page re-directs and unnecessary form filling. The customer shopping journey should be completed with the fewest amount of clicks possible, from the moment they land on your website to when they complete the payment at checkout. Integrating with a white label payment gateway can help your customer journey to be as seamless as you want it to be. Less friction, more conversion.
Pro tip: Allowing customers to save their card details on site will ensure an optimized checkout experience for when they return
4. Multiple payment options
The checkout page is where the sales happen, and customers are more inclined to complete the purchase when their preferred payment option is available. A study by comScore indicates that over 50% of online shoppers want to see a variety of payment options at the checkout. Offering multiple payment choices increases the chance of closing the deal all while creating a positive payment experience for the customer. When it comes to payments, don't settle for less.
5. Payment security assurance
Generally speaking, people are uncomfortable sharing their details online if they feel that their personal information could be at risk. Roughly 1 in 5 customers opt-out of transactions because they don't trust the site with their financial information. Don't let payment security concerns stand in the way of good business. Integrating with a reliable payment gateway can help secure the payment process and is beneficial for both the customer and the merchant in the long run.
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