March, 21 2022
If there's any key lesson we've learned about the e-commerce industry, it’s that you can get a faster ROI high without having to launch campaigns on too many marketing channels. That’s possible because of conversion rate optimization.
Many e-commerce retailers today see the shopping cart as the point where the customer’s journey ends in their funnel. And that's a big issue because that section of the funnel requires lots of investment, yet it provides room for leakages. In 2018, Digital Commerce 360 even found that more than $23 billion gets spent by marketers in order to get customers to their shopping carts.
But the sad truth is, all that investment only ends in a disappointing 2.63% conversion rate on average. That shows that the bottom of the sales funnel is where most of the leaks happen for e-commerce brands. So it means that the shopping cart phase of the customer’s journey through your website is where most of them tend to leave. And that's evidenced by a recent SalesCycle research which pegged the cart abandonment rate across different eCommerce sectors at 75%-90%.
Now that we know where retailers suffer the most cart abandonment problems in their sales funnel, we can use these actionable insights to come up with better solutions. So let's talk about how e-commerce brands can zero out the effects of cart abandonment and earn better returns by implementing some conversion rate optimization strategies.
Not many e-commerce brands have figured out how to end cart abandonment. But you can implement certain steps that help to reduce the rate at which customers exit your website during checkout.
Doing so will result in an uptick in profits. And the best part is that you don't have to spend so much to perform conversion rate optimization. All you need are the right tools and actionable information. With that in mind, here are three optimization tactics to lower the effects of abandoned carts on your business:
Consumers want to be able to make payments for their orders in different ways. When you offer only credit card processing, you discourage them from buying and cause them to abandon their carts. So consider providing other ways to pay such as drafts, debit cards, PayPal, or any digital wallet. You can even go further by offering customers a way to split their payments across different options. The idea behind making more payment options available is that it is a hack in conversion rate optimization. Rather than risk losing your customers to other retail stores that offer more flexible payment options, make sure visitors have the service on your website.
Many prospective buyers will see your adverts on different platforms before clicking through to your website. Some of them may decide to shop from you because they want to take advantage of the juicy deal offered in your promotion.
But the thing is, these buyers get disappointed most times when they add your products to their cart, proceed to checkout, and then find more costs awaiting them in the form of handling, tax, and shipping fees. Those are details that customers usually can see only after filling their carts up.
If you're assuming that customers will make that payment just because they went through the rigors of getting their shopping carts filled, then you might want to rethink that notion. You’ll end up losing them at the checkout page if they find additional costs and they’ll likely not return next time. Be transparent about total costs upfront so buyers don’t feel tricked.
Do customers love free shipping? Yes! Do they also over fast shipping? Yes, and they’ll pay for it if they have to. Some retailers have compelled their customers to increase the volume of their orders by making discounted/free shipping with minimum orders available. Many shoppers abandon their carts when the shipping cost is expensive. That’s what a Statista report shows.
While many buyers will opt for free shipping even if it takes 4 to 7 days for their package to arrive, a good number of customers will also ditch the fastest shipping option for the cheaper method. In a nutshell, when it comes to what your customers expect regarding shipping, some want free shipping, others prefer discounted shipping, while a good number need you to provide a plethora of options that they can choose from.
Competitive e-commerce retailers can go the extra mile in conversion rate optimization by perfecting the shipping process even more. How? You can do so by not only providing more shipping options but also displaying accurate expected delivery dates for each customer. That’s a proactive way to win their trust, provide a tailored experience, and reduce cart abandonment.
Consider integrating FenixCommerce into your eCommerce business if you’d like to save costs, offer more shipping options to shoppers, and increase sales. Check out how this order experience AI can help you get it done seamlessly.
Another conversion rate optimization tactic that works well is to allow your shoppers to see an indicator that shows them how far along they have come while heading towards checkout. It’s a way of leveraging buyer psychology to your advantage. When they can see how many steps more they have left to complete their purchase, you present their joinery as convenient and easy to navigate.
Then, continue to analyze and draw insights on which you can improve upon. Use what their behavior on your website tells you to continue optimizing your products and their experience. Always test, evaluate, correct, and repeat nonstop. Doing so will help you reduce cart abandonment problems one step at a time.
Customers getting to your checkout page shows that they moved through your funnel. So focus your conversion rate optimization efforts at the shopping cart phase to fully improve the experience for buyers and reduce the effects of cart abandonment.
Author: Akhilesh Srivastava
Founder and CEO of FenixCommerce