25 November 2015
Abandoned shopping carts are hot sales opportunities, and that reactivation can improve total ecommerce revenues with up to 12%.
67% of all shopping carts are abandoned
Recent analysis by Baymard Institute shows that 67% of all shopping carts are abandoned without completed transactions (and the number keeps growing). This tendency occurs while online companies are continuously trying to improve the purchasing experience, for instance by optimizing landing pages, introducing pricing strategies and improving check out flows. The question is why carts are abandoned and more importantly how to reactivate them.
Hot sales opportunities
Our experience shows that the abandoned shopping carts are hot sales opportunities, and that reactivation can improve total ecommerce revenues with up to 12%. Online companies should therefore consider recovering lost sales opportunities, by implementing automated cart abandonment emails.
This blog series will elaborate on the subject by including the following topics:
Consider an abandoned shopping cart like a broken promise. For the company, there is a lost sale and unclaimed revenue. For the customer, there is an unfulfilled need or want. The question is why the customer abandons their shopping carts in the first place.
Why are shopping carts abandoned?
There are several studies arguing the reasons and motives for why shopping carts are abandoned. Forrester Research, for example, has consistently blamed shipping and handling costs as the most common cause for abandonment.
Imagine that a shopper finds the perfect $20 item, adds it to the cart, and learns that it will cost another $10 —half of the product’s actual price — just to ship. At other times, a shopper might have become distracted, or maybe the shopper just wanted to compare prices from other sites.
Selling online, you should study the above-mentioned reasons for shopping cart abandonment and re-evaluate your site and business model accordingly. This involves improving the shopping experience by clearing the path to purchase, clarifying shipping prices and delivery times up front, as well as testing checkout scenarios including shopping cart abandonment campaigns.
But you should also consider implementing a shopping cart abandonment campaign in order to reactivate abandoned carts.
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