No business wants to see a customer make their way through the sales funnel only to abandon their cart at checkout. Many companies blame the buyer when they don’t complete the purchase, never stopping to think the problem may be on their end. What is the checkout abandonment rate? How can a business reduce this rate?
The Checkout Abandonment Rate
To reduce the checkout abandonment rate, a business must first understand what this is. When a customer adds an item to the cart, begins checking out, and doesn’t complete the sale, this is referred to as checkout abandonment. It differs from cart abandonment in that checkout abandonment occurs after the customer begins the process of paying for the item. If the customer never begins checking out, it is referred to as cart abandonment.
The cart abandonment rate hovers around 69 percent. The checkout abandonment rate, in contrast, averages 25 percent. However, the rate is much higher in certain industries and lower in others. Regardless of the industry, every business owner wants to see this number go lower. However, the business must first understand why customers abandon their carts.
Extra Costs
The main reason a customer abandons their cart during the checkout process is extra fees. When they see additional charges such as shipping and tax, they may decide not to complete a purchase. Ensure they know the total price before they head to check out to reduce the risk of them abandoning the process. The easiest way to overcome this is to offer free shipping. Doing so provides the business with an edge over competitors.
Checkout Usability
If the checkout process is confusing, a customer may leave the site and visit a competitor. Reduce the risk of them doing so by making it easy to get the items they want. Don’t require them to create an account. Allowing guest checkout can increase the conversion rate by 45 percent. Permit them to register using a social media or Apple ID rather than entering their information to simplify the process.
Make the checkout process easy to avoid having a customer abandon the process at this stage. A speedy checkout increases the likelihood of the purchase being completed. For every additional step in the checkout process, the odds of the sale being completed decrease.
Payment Methods
Offer different payment methods to reduce checkout abandonment. Customers like options, so every business needs to provide them. However, doing so can be costly for the business. A payment orchestration system helps to keep these costs down. Debit and credit cards remain the preferred payment for most American consumers today. In fact, four out of five online purchases are made using these cards. However, Europeans typically prefer PayPal or Alipay. Ensure every user can pay using their preferred method with the help of BlueSnap. In addition, consider offering a buy-now-pay-later option to increase the conversion rate.
Checkout abandonment is something every ecommerce retailer needs to be concerned about. With these tips, a retailer can reduce its checkout abandonment rate and see conversions rise. Implement these tips today to see a rise in sales quickly.
