A high customer engagement rate on an e-commerce website is good for the business. It implies visitors come to the website, look into the available product ranges, add products to their shopping carts, and make purchases. But there is one aspect related to this user journey that is often overlooked – shopping cart abandonment.
In simple terms, an abandoned shopping cart means a user adds products to the cart but does not place the order. The pain of shopping cart abandonment has an equivalent effect on both small and big businesses. However, the impact differs mainly at scale. As per statistics, the worldwide shopping cart abandonment rate stood at 88.05% in March 2020, which means 88.05% of online orders were not converted into a purchase.
Shopping cart abandonment is one of the significant problems faced by online business owners. Every year, millions of rupees are lost because the end-customers end up leaving the products in their cart without completing the checkout process.
If you also run an e-commerce business, you should know about the average cart abandonment rate on your site and how you can improve that. Before we move to the exact numbers, let’s start with some basic information about cart abandonment.
What is shopping cart abandonment?
Shopping cart abandonment results when the prospective customers add products to the cart on your website but leave before paying for them. It is measured in terms of cart abandonment rate, which is an important metric for online retailers to monitor. This rate is correlated with conversion rate and revenue on an e-commerce site.
A high cart abandonment rate indicates the existing friction in the customer experience or particularly the checkout process followed on your online store. It also refers to the missed opportunities and revenue loss.
Statistical information – cart abandonment rate
Checkout abandonment rate usually varies as per the industry your business operates in, the product range you sell, and the target audience. In general, the average cart abandonment rate worldwide has come out to be 69.57% – a key figure for e-commerce players to look at.
Top reasons for shopping cart abandonment
- Unexpectedly high shipping price
- Payment security issues
- Product quantity restrictions
- Comparison shopping
- Lack of preferred payment sources
- Unclear return/refund policy
- Unreasonable delivery timeframe
- Site performance issues
- No discounts
- Long checkout process
Simple way to reduce shopping cart abandonment rate
If you have already spent considerable time researching how to reduce the shopping cart abandonment rate, you might have several tips and tricks handy. Many of the steps and methods related to lowering the cart abandonment rate point out one crucial aspect – simplifying the payment acceptance process.
There is one way you can reduce the rate of cart abandonment on your online store – use of Paytm payment links to accept payments from your customers.
With Paytm Payment Links, you can ask the customers leaving their carts to continue buying the products in their carts and get paid instantly. Think of our payment links as an alternative to the traditional checkout experience on your online shop. Once you know what a customer wants to buy from you, you can directly ask for the payment via Paytm payment links and get things delivered to his/her doorstep. It helps regain and retain the abandoned carts and improve online sales.
All you need to do is to share Paytm payment links to your customers via an SMS, Whatsapp, email, chat, or any other communication medium.
5 reasons to choose Paytm Payment Links
- Easy substitute for cash-on-delivery payment method
- Easy to integrate with chatbots and social media channels to enable a quick checkout for your customers
- Availability of multiple payment sources like cards, UPI, and net banking on the customer’s front
- Simple process to create payment links on the go
- Offer the facility to make partial payment – like an upfront token payment for large orders
- Bulk creation of payment links for up to 100 customers
- Easy to accept international payments
What more can you do to reduce cart abandonment?
- Maintain transparency related to all the costs associated with your products
- Optimise page load speed
- Provide live chat support
- Reassure customers by using trust symbols like PCI-DSS compliance and similar others
- Showcase a clear refund/return policy
What happens when a customer abandons an online shopping cart?
A potential customer leaves a website after abandoning the shopping cart without completing the purchase process. On the business side, it means loss of revenue, which can be prevented by using Paytm Payment Links and delivering a hassle-free payment experience to your customers. They can simply click on the link you send, choose their preferred payment method, and make online payments.
How can I stop abandoned carts on my e-commerce website?
There are various ways to reduce cart abandonment on your business website, one of which is to reconnect with the customers via payment links and offer multiple payment sources to complete the purchase.
Why are abandoned shopping carts bad for a business?
Cart abandonment tends to affect the revenue generated from your website negatively, thereby stunting your business growth. It also prevents your brand from reaching more customers and increasing sales.
What is the average cart abandonment rate?
Based on the statistics shared above, the average rate of shopping cart abandonment is 69.57% worldwide.