Learn about
Abandoned Cart
What is an Abandoned Cart?
Abandoned cart refers to the situation when a customer adds items to their online shopping cart but then leaves the website without completing the purchase.
Understanding why Abandoned Carts happen
Common Causes
Here are a few of the reasons why carts often get abandoned:
- High shipping costs: When customers see high shipping costs during the checkout process, they may decide to abandon their cart.
- Complicated checkout process: A checkout process that’s too complicated or requires too much information can frustrate customers and cause them to abandon their purchase.
- Lack of payment options: If the website doesn’t offer the payment method the customer prefers, they may choose to abandon their cart.
- Technical difficulties: Glitches or errors during the checkout process can be frustrating for customers and may lead them to abandon their cart.
- Price comparison: Customers may add items to their cart to compare prices with other websites or physical stores, but ultimately choose to buy from a different source.
- Changed mind: Sometimes customers add items to their cart but then change their mind about the purchase before completing the transaction.
- Unanticipated costs: If the customer encounters unanticipated costs, such as taxes or fees, during the checkout process, they may decide to abandon their cart.
Ecommerce businesses can keep track of abandoned cart instances and use different tactics to try and retrieve those sales. These strategies may involve sending follow-up emails, providing discounts, or using targeted advertising to encourage the customer to complete their purchase.
Example
Sarah is an online shopper who is browsing a clothing retailer’s website. She adds a few items to her shopping cart, including a dress, a pair of shoes, and a handbag. However, before she can complete the checkout process, Sarah is interrupted by a phone call and forgets about her cart. Later that day, when she returns to the website, she decides she doesn’t want the items anymore and leaves the website without making a purchase. The retailer’s system notes that Sarah abandoned her cart and the business can then take action to try and recover the sale, such as sending a reminder email or offering a discount code.
Why preventing Abandoned Carts matters
Recovering abandoned carts can be an effective method for ecommerce businesses to boost their sales and revenue. By tracking customers who have left items in their cart and following up with them, businesses can remind them of their interest in the product and offer incentives to complete the purchase. This can lead to a considerable increase in conversion rates and revenue. Furthermore, abandoned cart recovery can help businesses build stronger customer relationships by offering a personalized experience and showing their dedication to customer satisfaction.
Related Concepts
- A/B Testing
- Analytics
- Conversion Rate
- Conversion Funnel