Shopping cart abandonment – which happens when a visitor to your online store initiates the checkout process only to leave without completing the purchase – remains a big challenge for retailers this year. 

Considering year-over-year stats, MarketLive reported that overall cart abandonment went from 57.88 percent in the first quarter of 2007 to 59.43 percent over the same period in 2008.

A few months ago (Nov. 18), Charles Nicholls of SeeWhy said shopping cart abandonment rates increased steadily in 2009, up to almost three quarters of shoppers (71 percent) in October.

Meanwhile, a June 2009 study by PayPal and comScore found 45 percent of U.S. online shoppers had abandoned shopping carts multiple times in just a three-week period. Interestingly, 46 percent of respondents cited high shipping charges as a primary reason for backing out of a purchase.

Other reasons for cart abandonment included, from the PayPal-comScore study:

• Wanted to comparison shop: 37 percent
• Lack of money: 36 percent
• Wanted to look for a coupon: 27 percent
• Wanted to shop offline: 26 percent
• Couldn’t find preferred pay option: 24 percent
• Item unavailable at checkout: 23 percent
• Couldn’t find customer support: 22 percent
• Security concerns: 21 percent

“As several surveys have shown, the reasons for shopping basket abandonment are varied, and not all can be controlled, but retailers can do what they can to deal with the rest,” wrote Econsultancy.com blogger Graham Charlton (Nov. 30).

Charlton suggests the following strategies to reduce basket abandonment at your online store:

• Avoid last minute surprises. “Delivery charges and options should be made clear on product pages and elsewhere on the site so customers are aware of this before adding items to their basket.”
• Offer alternative payment methods. Studies have shown that many customers ditch baskets once they see their preferred method of payment is not offered. Charlton recommends PayPal, Google Checkout and locally-sold vouchers, to “cover as many bases as possible.”
• Add a contact number. Answering customer questions over the phone encourages customers and helps to close sales.
• Enable comparison shopping. “If shoppers want to add items to baskets then return later, then, as well as longer cookies, provide save basket options or (allow them) to create wishlists without a lengthy registration process,” wrote Charlton.
• Provide all information on the basket page. Show charges, return policies and answer FAQs to reassure them about server security and reduce abandonment.
• Offer multichannel alternatives. The PayPal-comScore showed that 26 percent of respondents wanted to shop offline and were likely just researching online beforehand. Offer collect-in-store services, point them to the nearest location and show inventory counts to avoid a fruitless store visit.
• E-mail customers to bring them back. If you have the customer’s e-mail address, follow up on abandoned baskets with an e-mail to lure him/her back. Careful wording and timing are needed, as some customers may find this tactic intrusive, Charlton warns.

- newsletter@iQmetrix.com

* To read more about E-Commerce Tips, check out the following articles from iQmetrix News & Views:

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