The Checkout Challenge: How to Combat Abandonments and Boost Conversions

Checkout abandonment is a significant headache for numerous e-commerce businesses, as the customer initiates the final step before completing the purchase but, for any reason, leaves the process unfinished. This indicates a strong purchase intent; however, some stone is blocking the road. This article dives into the reasons behind checkout abandonment and how you effectively combat it.

The average cart and checkout abandonment rate is around 70%. In the effort to reduce this,

efficient delivery solutions combined with a seamless checkout are vital for your business to reduce the number, increase conversions and make your e-commerce flourish.

Shipping Options, Unpleasant Surprises, Complexity and Data Security: The Reasons Behind Checkout Abandonments

1.      Unexpected costs

The most prominent reason behind checkout abandonment is caused by unexpected costs. Here, 56% of consumers report that their abandonment is due to unexpected costs on shipping and taxes. Here, 49% of customers report that unexpected shipping costs are the main reason on why they cart abandonment is performed. In continuation, 75% customers prefer free shipping to a degree where the cart is abandoned if the cost is considered too high.

2.      Shipping options

Shipping options is a compound theme that extends beyond the number of options. Consumers demand a range of options that suit their individual preferences. On the other hand, too many options might be confusing and lead to abandonments. In terms of options, some consumers prefer home delivery, some prefer the goods to be delivered to their workplace, and some prefer to select a particular pick-up point. In addition, price and pace of the shipment is vital metrics to consider. Here, trac n trace is highly appreciated by consumers, as it provides a peace of mind in terms being aware of the location of the shipment – especially related to more expensive goods.

These were the more technical specifications. In relation to shipping options, sustainability and the generated carbon emissions gain more ground and become even more prominent on the consumer-value agenda in terms of being influential and contributing and shape consumer-preferences.

3.      Payment options

Checkout abandonments are not only linked to unforeseen expenses and shipping options. The payment options, one encounter in the checkout phase, is equally pivotal. Most consumers are constantly accompanied with their smartphone, which gradually replace our need for having an actual wallet filled with physical cards. This emphasizes the importance of integrating mobile payment in one’s checkout flow. The convenience of mobile payment is highly associated with buy on impulse. If consumers are forced to locate their credit cards, the lack of convenience might lead to abandonments or consumers who leave the checkout-flow unfinished.

4.      Complexity

Online shopping should be a convenient, seamless, and frictionless experience. 25% of consumers agree as one-fourth abandonments are due to complex, long and counterintuitive websites and checkout-processes.

5.      Data Security

Concerns on site security constitute the reason why 17% of consumers abandon the checkout process. Trust is a priority and key around e-commerce. Personal data security and credit card information is likely paramount.

Monitoring establishes understanding
As an e-commerce business combating abandonments, understanding and insight are key elements in identifying where to intervene. Here, several metrics are relevant to calculate and dive into.

1.      Abandonment rate

Calculating the abandonment rate is a crucial step in diagnosing and addressing issues that hinder e-commerce conversion. It is crucial to perform the calculation for several reasons:

• Performance Assessment: It provides a clear metric to evaluate how well your e-commerce website or app is performing in terms of converting visitors into customers. A high abandonment rate indicates potential issues in the checkout process that need attention.
• Identifying Problem Areas: Abandonment rate calculation helps pinpoint specific stages in the checkout process where customers are dropping off. This allows you to identify problem areas and focus on optimizing those steps to reduce abandonment.
• Resource allocation: It helps allocate resources effectively. By knowing which parts of the checkout process are causing the most abandonment, you can prioritize improvements and allocate resources efficiently to address the critical issues.
• Benchmarking: You can compare your abandonment rate with industry standards and competitors to gauge your e-commerce platform's competitiveness. This benchmarking can guide you in setting realistic targets for reducing abandonment.
• Decision making: Abandonment rate data can inform strategic decision-making, such as whether to implement new payment options, streamline the checkout process, or enhance the user experience to reduce friction and boost conversion rates.

2.      Value of abandoned order

Even though it might feel unsatisfactory, a value calculation of the abandoned orders will establish a crucial understanding on the financial impact. Can you, as a business, afford not to solve this? And how will it affect the business, and its possibilities if you manage to reduce the abandonment rates?

3.      Customer journey

A thorough review of your customer journey is essential for identifying pain points, optimizing user experience, and reducing checkout abandonments. It allows e-commerce businesses to tailor their strategies to meet customer needs, ultimately leading to higher conversion rates.

• Understanding User Behavior: It helps you gain insights into how customers interact with your website or app from the moment they land on your site to the point of checkout abandonment. This understanding enables you to identify pain points and bottlenecks in the customer journey.
• Pinpointing Abandonment Triggers: By analyzing the customer journey, you can identify specific actions or stages where users are most likely to abandon their purchases. This knowledge allows you to focus on optimizing those critical touchpoints.
• Cross-Device Optimization: Many customers switch between devices during their journey, such as researching on a mobile device and completing a purchase on a desktop. Reviewing the customer journey helps ensure a seamless transition between devices, reducing friction and abandonment.
• Data-Driven Decision-Making: By examining the customer journey, you can make data-driven decisions to improve user experience and checkout processes. This allows you to allocate resources effectively and prioritize efforts to address the most critical issues.

Understanding the customer journey is not just about preventing abandonment. It also aids in building long-term customer relationships. A positive journey experience can lead to enhanced customer loyalty and repeat business.

4.      Page Load times

Studies constantly show that faster websites lead to higher conversion rates. Reducing page load time is central in combating checkout abandonment rates due to its significant impact on user experience and conversion rates. Here is why, along with relevant micro goals:

• User Experience Improvement: Faster page load times create a smoother and more enjoyable shopping experience for customers. When pages load quickly, users are less likely to get frustrated and abandon their carts out of impatience.
• Micro goal: Aim to reduce the loading time of key checkout pages, such as the cart page and payment page, to under 2 seconds.
• Improved Mobile Experience: Many customers shop on mobile devices, where slow load times can be particularly frustrating. Ensuring fast-loading pages on mobile is essential for reducing abandonment among this significant user group.
• Micro goal: Optimize images and scripts specifically for mobile devices to ensure quick loading and a seamless mobile shopping experience.
• Optimized Images and Content: One micro goal within the broader strategy of reducing page load time is to optimize images and content. Compress images, minimize code, and use efficient content delivery methods to decrease loading times.
• Micro goal: Implement image and content optimization techniques to reduce the file size and loading time of web pages.

Actions that Abridge Abandonments
When selected metrics have been monitored, the necessary preconditions should be established for you to start implementing solution-oriented initiatives.

1.      Shipping options

Provide different shipping options of trusted partners. This enables that you become able to offer logistics solutions that correspond with individual preferences. Shipping is an inevitable cornerstone of your e-commerce setup and exceeds mere functionality.

2.   Build trust

To establish and increase trust among consumers, one can employ several initiatives. In relation to building on-site trust, security certificates may be beneficial to apply combined with secure and payment gateways. Being transparent about your business practices, including pricing, return policies, and terms and conditions, helps build trust. Hidden fees or unclear policies can erode trust and lead to cart abandonment when customers feel they're being deceived. Displaying customer reviews, ratings, and endorsements on your website can provide social proof of the quality of your products or services. Positive feedback from previous customers can alleviate doubts and encourage potential buyers to proceed to checkout.

However, trust is not solely established through on-site. Trust is also built through off-site platform such as Trustpilot. Trustpilot is a trusted third-party review platform where customers can share their experiences and opinions about your business. Since these reviews come from real customers, they carry significant credibility and influence potential buyers.

3.      Conversation Rate optimization

CRO is essential within reducing e-commerce abandonments, especially when it comes to constructing the shopping cart in an optimal way. The optimization affects users’ mental decision-making processes and, thereby, makes it harder for them to abandon the checkout. Here is why CRO is important in that sense:

• Product Recommendations: CRO can include intelligent product recommendations based on user behaviour and preferences. By suggesting relevant items in the cart, you can entice customers to add more products or complete the purchase, increasing the perceived value and making it mentally challenging to abandon the cart.
• Multiple Payment Options: CRO ensures that various payment options are available, accommodating users' preferences. Offering options like credit cards, digital wallets, and buy now, pay later services can make it easier for users to complete the purchase, reducing mental friction.
• Shipping Information: Providing clear and transparent shipping information, including estimated delivery dates and any shipping costs, eliminates uncertainty and reduces the mental hesitation that can lead to cart abandonment.

4.      Data minimization

Based on incidents in which personal data has been abused, data policy is a prominent theme on the consumer agenda. Ask only for the necessary data and be transparent on why these are collected and be upfront with the purpose they serve.

5.      Simplify the process

Ensure a straightforward and simple customer journey. The fewer steps, the better.

6.      Transparency

Demonstrate transparency by being upfront about alle costs. This will, from a consumer perspective, avoid unpleasant surprises. As previously established, unpleasant surprises are linked with higher abandonment rates.

7.      Technical Robustness

Ensure that your site is up and running. Frequent crashes give rise to scepticism and lack of trust.

Combating checkout abandonment is vital for your e-commerce to flourish. Here, it is furthermore key to establish an understanding of the various metrics that are in play as these might shed light on key figures and provide you valuable explanations. Based on these insights, you can phrase and implement strategies that serves the purpose of increasing conversions and reducing abandonments.

Feel free to reach out if you have any questions related to the article.