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Shopping cart abandonment is when a potential customer starts a check out process for an online order but drops out of the process before completing the purchase. Any item that enters the shopping cart but never makes it through the transaction is considered to be “abandoned” by the shopper. Shopping cart abandonment is an important aspect of the online shopping process that retailers pay careful attention to.
Shopping cart abandonment rate is calculated by dividing the total number of completed transactions by the total number of transactions that were initiated. This rate will identify what percentage of a site’s users signal purchase intent by adding an item to the cart, but don’t complete the purchase.
The shopping cart abandonment rate is an important metric for e-commerce sites to keep track of because a high abandonment rate could signal a poor user experience or broken sales funnel. Reducing shopping cart abandonment leads directly to more sales and revenue, so optimizing the checkout flow a core area of focus for many online retailers.
There are many possible causes for shopping cart abandonment, making it a complex problem to tackle. The first step in addressing the issue is to create hypotheses about why visitors are abandoning their carts. This can be done by looking at analytics data and identifying dropoff points, conducting user research and surveys, or comparing your checkout flow to competing sites.
Once a hypothesis has been generated, then different solutions can be tested on the site through A/B testing to determine whether a proposed solution will help improve the shopping cart abandonment rate.
For example, one common issue that many online retailers face is the issue of trust. Although web users have grown more comfortable in providing their credit cards over the web, many users can still be hesitant to provide their financial information to unfamiliar websites.
If the theory is that lack of trust is causing shoppers to abandon their carts, then different solutions can be implemented to increase trust, such as including reviews and testimonials, incorporating trust seals, prominently featuring pictures of real people, and offering money back guarantees. Each of these can be tested on the site to determine whether they have a statistically significant impact on cart abandonment rate.
In another example, a company might notice that 25% of their shoppers are dropping off on the second page of their shopping cart. Once they have identified the problem area, they can implement different features to encourage users to complete the purchase.
For example, they could test adding a progress bar to give shoppers a visual indicator of where they are in the checkout process. Or they could offer a limited-time offer to incentivise shoppers to complete the transaction immediately. They could even eliminate the second page of their checkout flow altogether through a redesign, in order to speed up the checkout process.
By creating hypothesis for why a site’s shopping cart abandonment rate is high and testing new ideas for improving the sales funnel, ecommerce sites can constantly improve the conversion rate of their site and increase revenues without having to spend more on increasing traffic.
Every site is different, but the following are some common issues faced by many sites that result in cart abandonment:
There are many different reasons why customers abandon shopping carts and many potential ways to solve them, which is why A/B testing is a key part of reducing shopping cart abandonment.
A/B testing software such as Optimizely allows you to easily make changes to your site through a visual editor (no coding required!) and then split your traffic so that visitors to your site are randomly shown either the original version of your site, or the version with your changes.
Once Optimizely has collected enough data, it uses an advanced statistical engine to tell you which version of your page performs better. With Optimizely there’s no guesswork involved, you will know with mathematical certainty which version of your site has a lower shopping cart abandonment rate and exactly how big the impact on your business will be.
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