Retail Analysis
CHECKED OUT
Elena Bazhenova, payments specialist at
exactly.com reveals why online shoppers abandon their journey.
I
n the fast-paced world of e-commerce, where the battle for consumer attention is heavily saturated, online shopping cart abandonment remains a persistent challenge for online retailers.
Despite the advancements in technology and marketing strategies, a significant portion of online consumers leave their carts before completing their purchases. According to studies, more than a quarter of UK customers are
abandoning their carts before completing their online transactions which adds to an alarming £34 billion of potential sales lost. On a global scale, global online cart abandonment rates have risen to over 70%; meaning that on average, nearly three out of every four shoppers who add items to their online carts do not complete their purchase. It’s vital that online retailers seek to understand the factors
contributing to the high-level cart abandonment issues, whether it be because of pricing strategies, lack of payment methods, or security concerns in order to implement effective solutions to drive conversion rates, maximise revenue and steer potential customers back to the checkout page. In order to reduce the impact this has on the bottom line for
businesses and drive sales, ecommerce merchants must first understand and differentiate between basket abandonment and checkout abandonment. Basket abandonment refers to dropouts of customers with products left in their cart before progressing to the checkout process, whereas checkout abandonment refers to
6 | September/October 2024
customers who disconnect from the merchants site during the payment checkout process. Actively tracking and analysing the issue will allow them to gain insight into the stage of the online shopping journey that potential customers make the decision to leave.
Common Factors Impacting cart and checkout abandonment Security concerns – according to research from VISA, 72% of Brits abandon their virtual baskets with fears of having their credentials stolen being the main contributing factor. Security remains a top priority for online shoppers and with increasing risk of online fraud or data breaches, consumers are becoming more and more hesitant to complete their online orders. Ecommerce businesses need to reassure their customers that they are legitimate by displaying clear security indicators, such as SSL certificates and trusted payment gateway logos to ease the minds of shoppers that their information is safe. Additionally, providing transparent information about security measures and privacy policies can further build trust and confidence.
Mobile experience – as ecommerce has evolved, the tools and technologies that allow shoppers to purchase online have also changed. Research has shown that 69% of online shopping in the UK takes place via a mobile device. However, another study looking into online cart abandonment found that 77% of online
www.pcr-online.biz
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
