The eCommerce industry is an accumulation of benefits and losses. It depends on you what aspect you are choosing for your business. To become a successful eCommerce business entrepreneur, knowing about every little factor is essential. One of the significant aspects is cart abandonment. When an online customer visits a marketplace and adds the products to their cart but disappears without making the final checkout process, it creates the situation of cart abandonment.
To increase your sales as well as your revenue, it is crucial to monitor the reasons behind cart abandonment. According to a recent survey, eCommerce businesses lose over 65% of sales because of cart abandonment. It drastically affects your brand’s credibility and reputation at various levels. However, if you find out the significant reasons behind this, you will be able to minimize this percentage effectively. In this particular blog, we have mentioned some of the reasons that lead to the abandonment of carts. It can help you in providing checkout confidence to your potential customers.
Reasons Behind Cart Abandonment in Online Business
Before taking essential steps toward minimizing the cart abandonment rate, it is imperative to know the reasons behind it. Your time and effort can vanish if a customer abandons the cart without completing the checkout process. Here we are mentioning some of the specific reasons that may clear the air and make you understand why it happens most of the time.
Unexpected Additional Charges
One of the most common reasons behind cart abandonment is additional charges that get added at the time of final checkout. At this time, customers may change their shopping decisions and abandon the cart immediately. During the checkout process, along with the product’s actual price, marketplaces also add the shipping, delivery, and other charges. It highly affects the product’s actual price and makes the customer rethink before making the purchase. It immensely affects the customers’ satisfaction level if their charges are hidden.
The ultimate solution is to provide every detail of each charge that is to be added to the products. In this way, they can completely understand the charges they will pay, which may help minimize the cart abandonment rate.
Compulsory Account Creation
A new customer can not make a purchase without an authenticated profile on prominent eCommerce platforms such as Amazon, Flipkart, Myntra, etc. Sometimes customers don’t want to spend their time on such a process, which is also a reason behind the increasing cart abandonment rate. To deal with this situation, marketplaces should never force the customer to create an account, and instead, they should provide guest checkout options. As a brand, you must keep this in mind if you plan to create your own online shopping portal.
In terms of collecting customers’ personal information, such as their contact number, email address, and delivery address, ask these questions after they make a purchase. Every upcoming eCommerce brand is establishing its business with this tactic. To resolve this problem, you can also sell your products on websites that provide the option of guest checkout as well.
Limited Payment Options
A customer may abandon the shopping cart if they don’t find a suitable payment method. Although we live in a digitalized world, many still only understand the language of cash. Hence there must be an option for a cash-on-delivery. Most customers prefer to pay the amount at the time of order delivery. So along with the credit, debit, UPI, and wallet payment options, there must also be the option of COD. You need to understand the fact that customers don’t develop trust quickly if they do not hear about you. This can be the reason why they abandon the cart in case of the unavailability of cash on the delivery option.
Poor Stock Management
Suppose a customer adds a product to their cart, but the item gets out of stock during the final checkout process; what do you think it leads towards? Of course, it increases the cart abandonment rate. Thus, poor stock management can also be the reason for this devastating situation.
So you need always to keep an eye on your stock to decrease the cart abandonment rate in the future.
Now the question is, how is it possible to watchdog your stock 24×7? Well, at this point, you need to take the help of a robust stock analysis software such as etraKY BS. It provides you with real-time notifications along with a stock analysis report. In this way, you will be able to get clarity on your stock and never miss a chance to dissatisfy your customers. This software alerts you whenever a product gets out of stock and gets back in stock.
Not Maintaining the Price Hygiene
It can be another reason for the increasing cart abandonment rate in the eCommerce industry. You must know that based on recent research, it has been found that approximately 75% of customers compare the price of the product on various eCommerce sites before taking the final checkout step. Customers never want to pay extra for a product if they find it at a lower price somewhere else.
In this scenario, sellers or brands need to monitor the prices of their competitors. But this task may consume a lot of time or may potentially take up your whole day. A more sensible solution is acquiring price tracking software such as etraKY BS. It can also help you track the historical data to understand your customers’ changing preferences. So, by maintaining the price hygiene across the channels, you can somehow minimize the cart abandonment rate.
Now, you must have got an idea about the various reasons for the cart abandonment. You may follow the above-mentioned solution to provide checkout confidence to your customers. You may also focus on other vital elements that can help reduce the cart abandonment rate, such as inaccurate return policy, complicated checkout process, delayed shipping and delivery options, payment insecurity, lack of customer support, etc. However, you can effectively diminish these issues by implementing best practices for a hassle-free checkout process. Some significant issues such as maintaining the price hygiene and stock unavailability can get resolved with the help of powerful brand analytics software such as etraKY BS.