Hi guys, John Peden here from CartRecover.com
Today I want to talk about the reasons customers abandon their carts
Most ecommerce store owners are oblivious to cart abandonment, or even know the problem exists. They might have heard the term, and might think that abandoned carts are an issue, but most don’t know that the average cart abandonment rate is 68.63%, and they probably have no idea of their cart abandonment rate and what that translates to in terms of dollar value.
For the most part, these are people who don’t know they have a problem. There is a small minority of store owners who think…
“Yeah ok, I know I have to handle my cart abandonment, I know why it happens – it’s because customers are time wasters. They change their mind, they add stuff to their checkout and then they change their mind and they leave”.
That couldn’t be further from the truth. That reason shows up as number 6 on a study done back in 2012 in terms of top reasons customers drop out of your sales funnel and abandon their carts.
For cart abandonment, this is a massive problem. As your sales go up, your cart abandonment rises with it, unless you choose to do something about it. So the more you sell, the more you are losing in cart abandonment.
The number 1 reason for cart abandonment is shipping costs. They get all the way through the checkout process, and your shipping costs are displayed too late.
They see that because they live in Hawaii or the UK and you’re shipping from Delaware, you’re charging them $100 to ship that product. Another scenario could be, they are buying a big heavy rug, you’re charging them $100 to ship that product and it’s displayed too late. They’re almost ready to buy from you, and you lose them because the shipping costs were too high.
That’s the number one reason.
There are a series of other reasons, but basically the top reasons come down to:
- Shipping costs being too high
- Customer wanted to shop around (not ready to buy just yet)
- The overall price of the product being too high
- The customer found a better deal elsewhere
What all of those reasons can be attributed to is the customer either thinking the price is too high (whether for your products or your shipping), or the customer not being ready to buy. So what can we do about those to get the numbers down?
Free shipping is absolutely the biggest thing you could do today to get that number down. We are not talking about cart recovery emails, that’s dealt with elsewhere and we will come to that in another video. What we are talking about is stopping the customer from abandoning their cart in the first place.
Think about it: you’re piping people into your sales funnel, and you are just losing them at this last little step, which is ‘converting a lead into a customer’.
So you need to make that checkout process as smooth and frictionless as possible. The first thing to try is free shipping. Now, obviously there are costs associated with that, but if you can suck those costs up and still remain profitable, you will see a huge boost in the number of people making that leap from lead to customer.
You can try things like:
- Free shipping above a certain dollar amount.
- Free shipping on certain days.
- Free shipping for customers in particular areas that did not convert very well.
- Free shipping on particular products.
There is lots of ways to offer free shipping without going broke, and I’ll link to some really really cool information on that in this video.
The next reason as we discussed, is a customer not being ready to buy. You need a way of letting them know they can revisit your checkout and buy whenever they are ready. The way to do that? Store their carts.
You use a cookie, get your developer to set this up for you or your development team or indeed if you are a developer then do it yourself. Just make sure that carts are stored for as long as possible. Asos.com in the UK, a big clothes company, store carts for over 60 days.
Think about that. They’re factoring in a customer taking almost 2 months to complete a purchase. How long do your carts persist for? Just something worth considering.
Reasons 3 and 4: the product being too expensive or finding a better deal elsewhere. Now again, there is some really cool information over on cartrecover.com on how to capture those visitors and to keep them buying from you.
Take Amazon prime as an example, I spend $100 a year on Amazon Prime. It’s easier for me to go straight to Amazon and buy a product, even it’s a couple of dollars more expensive than a competitor, it’s very simple and very straightforward. I know it will ship very fast, and the returns will be no issue.
I know that if I choose to ship urgently, because I’m on Prime, I get a better deal. There’s loads of reasons that Amazon, even though their products are slightly more expensive, I’ll go and buy from them.
There is also Zappos, who have prided themselves on their amazing customer service, that’s how they differentiate themselves, they are no longer just a shoe shop. They are a leader in customer service, that is their USP (unique selling proposition).
So how do you differentiate you and your business? Do you offer:
- Free returns?
- Do you offer no hassle returns?
- Free shipping?
- Expedited shipping?
There are loads of nice little things that you can offer your customer, so they will come back and buy from you even though you might be slightly more expensive.
So you want to pitch your product so that it encourages them “not to shop around”. This is why I hate coupon codes so much. How many times have you gone through a checkout process, you see a coupon box, and you leave the site to go look for a coupon code?
It’s because they are thinking “well, there must be a coupon available, there is a coupon box on the site”. Even for cheap things, I’ve used coupon codes on domains that have cost a couple of dollars to save a dollar less.
If you leave the site, it breaks the process. You want that checkout process to be as frictionless as possible.
The overall price of your product being expensive ties in with Zappos. Zappos can afford to charge a little bit more, as can Amazon. It’s because they offer expedited shipping and because the customer knows they are going to get easy returns if they need to send it back. Zappos will cover return shipping costs. Take these sorts of ideas and run with it on your own store.
Look at how can you get customers to buy a more expensive product without shopping around, how can you offer free shipping, how can you offer them a way that doesn’t force them to buy right this second, and give them time to look around and make a decision if they want.
And think about why they would be looking around, do you go to Amazon think “I’ll go look at a competitor for that exact same product”. Think about the psychology here. Amazon have countless reviews, countless testimonials.
The only reason I’d buy something from elsewhere, personally, is because the other store is a specialist.
If I can find the product on Amazon, I know I’m gonna get all those good things, so I’m tempted to just buy it from them. But if it’s a specialty item, I might be tempted to go to a specialist. That’s where you can compete with them.
Testimonials, reassurances, trust messages, particularly around your calls to action, make that checkout process frictionless and remove any sort of doubts or worries or concerns the customer might have that they are making a bad decision buying from you.
There is some food for thought, there are plenty more resources over at CartRecover.com. I really encourage you to check them out, there is only so much I can cram into one of these little videos.
Just a few ideas to think about, but free shipping is absolutely the big one. If you can offer free shipping without going broke you’ll be onto a winner in terms of reducing cart abandonment in the first place, which means you need to worry less then about your email sequence.
Head over to CartRecover.com check out the cart recover manifesto, just enter your email address in any of the pop up boxes and I’ll send it out to you.