4 ways to reduce abandoned shopping carts

E-commerce managers all over the world have one thing in common: an ongoing plight with abandoned shopping carts. And with good reason.

Studies show that, on average, 75% of shopping carts are abandoned . That means that 3 out of every 4 customers that add items to their basket don’t go through with the purchase. Why is that?

4 key factors that lead to the abandonment of shopping carts

Customers abandon shopping carts for a variety of reasons. Sometimes, users are merely browsing or researching. Others are setting up their basket and waiting on promotions or discounts to come by. Or simply trying to figure out the final cost. But most times, abandoned shopping carts boil down to a poor customer experience with one simple root cause: lack of adequate payment methods.

These are the key reasons for abandoned shopping carts.

1# Hesitation at the time of purchase

An SAP study shows that, for 73% of users, the purchasing process lasts approximately one day. During this time, users ponder whether the product or service is beneficial to them. They also compare prices and offers with the competition. And in these 24 hours, it is natural that at least some may go for an option that better suits them. It is a commercial motive for leaving and a powerful one since web users are keen to switch providers once they encounter a better value proposition elsewhere.

2# Hidden fees or taxes

Cost is clearly a major factor for modern consumers. But surprise costs are especially damming for the overall user experience. If the final costs are higher than the first amount users see, the likelihood of giving up on the purchase is very high. For half of the online shoppers, extra costs such as deliveries or hidden fees added at checkout are one of the major causes of abandoned shopping carts.

3# Complex and time-consuming checkouts

According to a study by the Baymard Institute, 18% of users say that checkouts and payment processes are too complex and time-consuming–and list it as one reason they give up buying. Filling in multiple fields of personal and billing data or having to perform too many steps to conclude payment are some examples of the obstacles pointed out by users.

4# Lack of alternative payment methods

The same study by the Bymard Institute confirms what any shopper knows intuitively: the lack of payment options leads to a higher rate of abandoned shopping carts. With the emergence of faster and simpler means of payment, consumer demands have also increased – and will continue to do so. And without payments methods, the tendency to abandon the buying process is much more poignant.

How to eliminate abandoned shopping carts

Given the major causes that may be behind your business’s abandoned shopping carts, there are several courses of action.

1# Deploy mental triggers

Users’ indecision might fade if companies persuade them they already have the best deal they can get. To do so, savvy brands resort to mental triggers that lead consumers to be more impulsive and decide quickly.

The trigger of scarcity, for instance, significantly reduces abandoned shopping carts. In the minds of users, this trigger gives a sense of fear of “being left out” – FOMO (Fear of Missing Out) and the possibility of loss. It leads shoppers to want to seize opportunities and move forward.

That’s why so many brands advertise the number of vacancies or items in stock (“last units”, “there is only 1 article left in stock”, etc.) or a checkout countdown (“Promotion valid for x minutes”). This will nudge customers along the buying process and urge them to move on to payment.

2# Show costs upfront

Did you know that free delivery is the most effective incentive for users? This does not mean that you have to truly offer the value of deliveries to customers and continue to support them in their entirety. You can simply increase the value of the product to include your delivery costs upfront.

Consumers prefer a product of 15 € with free delivery to another of 12 € + 3 € delivery fee. Why? Because the customer knows about it from the beginning of the process. Instead of an “extra” cost, users perceive this as a more transparent pricing strategy. In short, the best way to reduce abandoned shopping carts is to display all costs upfront and eliminate hidden fees.

3# Simple and fast checkout

Time-consuming, extensive checkouts lead to a higher rate of shopping cart abandonment. To improve it, it’s time to upgrade and streamline this process.

easypay Checkout gives brands access to a new, simpler, faster and more intuitive payment page. We are designed to reduce friction in payments and can be fully customized to the image of your business. Our checkout page can be used on any device (mobile phone, tablet or computer), and reduces 80% of the integration effort. It even allows you to configure the payment methods you want to make available.

4# Offer your customers’ preferred payment methods

With easypay checkout, for each payment, you can offer your customers’ preferred payment methods:

  • Multibanco Reference: the best choice to pay for services and invoices. It is one of the leading payments options in Portugal and can be easily setup within easypay checkout. This is how to get started with Multibanco references.
  • Visa and MasterCard: the most popular international means of payment for one-off and frequent payments. These are the primary advantages of Visa and Mastercad for businesses.
  • Digital IBAN: a new way to make bank transfers, without the need to send proof of payment and with automatic bank reconciliation. See Virtual IBAN in action.
  • MBway: Simple to integrate and configure, MBway is the Portuguese payment method with the highest penetration and growth rate in the last year. This is how to set it up in your online store or app.
  • Uniflex: the payment method that allows to pay a purchase in 3, 6 or 12 months and that is having a huge acceptance by the consumer. It is simple, fast, increases the average purchase ticket and loyalty.
  • Santander Consumer Finance: a totally innovative online credit solution for purchases up to €5,000. It Increases the average ticket of the purchase and the level of customer satisfaction.

Learn all about the benefits of easypay checkout and start lowering the rate of abandoned shopping carts in your online store today.