Shipping costs causing abandonment of etransactions
A new survey has found that nearly half (45%) of online shoppers have abandoned their carts multiple times in the past three weeks.
According to the PayPal survey, the average cost of abandoned goods in US shopping carts is US$109 and is mostly due to high shipping costs, security concerns and lack of convenience.
High shipping costs was cited as the largest single reason for cart abandonment. While nothing could have prevented one-third of shoppers from abandoning purchases, the survey found that providing shipping costs upfront might have caused 40 percent to complete the purchase.
“To get shoppers to buy, it’s critical merchants make the checkout experience easy and costs transparent,” said Eddie Davis, senior director of SMB merchant services, PayPal.
The survey also uncovered signs that the economy still has shoppers wary about clicking the “purchase” button. More than one-third of respondents abandoned checkout because they didn’t plan for all of the expenses; while more than 25 percent left the site to search for a coupon. However, one-third of shoppers later returned to the same site to buy. An additional 20 percent purchased the items at a brick and mortar store or competitor’s website.
“Merchants who don’t welcome back abandoners with open arms are leaving hundreds of dollars per shopper on the table,” added Davis. “Merchants need to remember the items that customers abandon and make it easy for them to buy when they return. Sweetening the deal with free shipping, coupons and special discounts is also a great way to encourage online shoppers to complete their purchases.”
Breakdown on why shoppers abandon
At least a fifth of all US survey respondents cited the following as very important reasons for cart abandonment:
• High shipping charges: 46 percent
• Wanted to comparison shop: 37 percent
• Lack of money: 36 percent
• Wanted to look for a coupon: 27 percent
• Wanted to shop offline: 26 percent
• Couldn’t find preferred pay option: 24 percent
• Item was unavailable at checkout: 23 percent
• Couldn’t find customer support: 22 percent