According to a recent Forrester survey, the number one reason for cart abandonment is high shipping costs. The results were as follows:
- High shipping costs – 44%
- Not ready to purchase – 41%
- Price checking – 27%
- Price too high – 25%
- Wanted to save products for later – 24%
In addition to basket abandonment, checkout abandonment rates are also an increasing problem faced by etailers, and with so much choice online this is unsurprising. Online consumers are now much less tolerant of problems online (in fact, only last night I found myself leaving a site when a page took longer than 5 seconds to load) and gone are the days of dial up, and so too, therefore, are the days of patient internet users.
Last year, an informative study by Akamai on ecommerce web page response times compared results from 2006 and 2009. Here is a snapshot of some of their findings:
- Consumers become impatient when pages take longer than two seconds to load. 47% of consumers expect a web page to load in two seconds or less, representing a significant evolution in consumer expectation over the 2006 study, which showed customer expectations at four seconds or less. Forrester found that 40% of consumers will wait no more than three seconds for a web page to render before abandoning the site.
- Online shopper loyalty is contingent upon quick page loading, especially for high-spending shoppers. 52% of online shoppers stated that quick page loading is important to their site loyalty, up 12% from the 2006 study.
- Shoppers often become distracted when made to wait for a page to load. 14% will begin shopping at another site, and 23% will stop shopping or walk away from their computer.
- Retail and travel sites that under perform lead to lost sales. 79% of online shoppers who experience a dissatisfying visit are less likely to buy from that site again, up 17% from the 2006 study. 64% would simply purchase from another online store, up 16% from the 2006 study.
Why are users abandoning their order further along the checkout process?
Back in 2006, the Webcredibles conducted a survey which asked the question: ‘Why would you abandon an order when shopping online?’ The results were as follows:
1 Hidden charges at checkout – 36%
2 Having to register before buying – 31%
3 No clear delivery details – 13%
4 Phone number not provided on website – 10%
5 Lengthy checkout process – 9%
(These results are also closely correlated to Marketing Sherpa’s 2007 survey.)
So, what do you need to do?
Well, the answer is pretty clear cut. Aside from the number one reason to abandon a basket (high shipping costs), the rest are to do with price, and with so much price transparency online, the obvious answer is this: make sure your prices match others online and provide your user with a hassle free, enjoyable shopping experience. Therefore, as an online retailer you will need to:
- Ensure your prices are similar to others online
- Keep your shipping costs low (an offer of free shipping is always a good incentive)
- Think about giving customers the option of not having to register before buying (a quick checkout option)
- Provide clear delivery details and returns information
- Provide clear customer service information (including a telephone number if possible)
- Examine your customer journeys and assess whether you might be able to cut out a stage or two during the checkout process.
Always think about your customer profiles or segments and the usability of your website and the checkout process – it should be painless and effortless for every user. While some may be experienced internet users who are confident online shoppers with high expectations, others may be nervous first time buyers who need reassurance by means of a telephone number, clear instructions or clear call to actions.
Nevertheless, whoever your customer may be, one thing is certainly clear… that there has been a rise in customer expectations, and those who fail to fulfil these expectations will loose out to their competitors online.
