Corporate News and Tips

Shopping Cart Report: Why Customers deliberately discard it

shopping-carts

A recent study finds that getting customers through the checkout process is becoming harder than ever, deliberate cart abandonments have nearly doubled since last year. – src. Bizjournals.com

As online retailer the most important part of the online buying process is how your customers get to the “Thank you page”. An online transaction isn’t complete until consumers make it through checkout. A recent study finds that getting customers through the checkout process is becoming harder than ever, and deliberate cart abandonments have nearly doubled since last year. Cart abandonment happens, both when shopping online or within actual physical store.

Two possible reasons why people abandoned shopping carts:

  • they may not have the money they need to complete the transaction; or
  • they may decide to look at another retailer for lower prices;

With too many e-commerce websites across the country the recent state of cart abandonments have been tied to consumers who are looking for a better price from the retailer. To consumers who are techno-savvy they know that many online retailers have triggered email campaigns that kick in after a certain period of time after a person abandons their cart. These triggered emails often have coupon codes (e.g. 10 percent off if you go back and complete your order or get % of discount on your 2nd purchase or earn shopping points that you can redeem in your future purchase).

While shopping cart abandonment has always been a problem for online retailers, but there is evidence that the situation is getting worse for online retailers. According to a study of 300 online retailers in the U.S. and U.K., there was a significant increase in the number of online shopping carts that were deliberately abandoned. In the past year, the percentage of deliberately abandoned carts nearly doubled. It was at 8 percent previously and so far, it’s 15 percent for this year.

Though the existing re-targeting technology is an efficient way of attracting customers to come back, the data suggests that consumers may be abusing this approach in order to obtain a reduction in cost.

The Side Effect

An unfortunate side effect of this marketing practice is that it encourages business owners to artificially inflate their prices since they know people won’t buy unless they get an additional discount on the sticker price.

This is what happened to JCPenny a few years back. The retailer stopped offering coupons and special prices, believing that customers would welcome a clearer pricing scheme. They eventually had to backtrack when it was discovered that people liked the whole fake pricing and saving with coupons. Consumers like getting discounts. So if a business has their prices set so low that they can’t afford to give a discount, it would be wise to raise the price slightly just so it’s possible to offer discounts that make people feel like they’re getting a good value.

There are three ways in which retailers can approach this deliberate abandonment behavior:

  • Retarget only new customers;
  • Limit discounts to more profitable products; and
  • Ensure technology used can apply multiple filters and offers.

The study also provided some insight onto other things that cause people to abandon carts. One in three consumers did not complete a purchase due to delivery cost and about one in four said they did not like being forced to create an account before the purchase could be completed.

Fact: These issues can be addressed through better shipping options and using social logins to reduce the hassle of creating an account.

As today service-oriented information such as store locations and hours, stocking information, and contact numbers is what today’s consumers want, instead of a hard sell.

Below is a shopping cart abandonement infographic to help visualized the rising trend.

shopping-cart-abandon

ref. bizjournals.com | business2community.com
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2 thoughts on “Shopping Cart Report: Why Customers deliberately discard it

  1. i have ordered Mary Kay cream to powder last week and i have already paid for it the problem is i was not able to double check if the delivery option that i have chosen was priority for pickup only when i received the voucher on my email it was then that i realized that it is for pickup at their office in Makati the problem is I am residing here in Lubao Pampanga a 3 hour drive away from Metro Manila , so i tried to call cash cash pinoy for assistance regarding my problem and i ‘am suggesting an option that i can only think of is to have prepaid padala an LBC promo were in i can buy a pouch and then pay for the delivery and pickup of the items i ordered on their site but they refused to accept my only option i know its their policy not to deliver makeups but its the only option i know i don’t have or know any relative or anyone presently living in Manila who can pickup the items from me LBC is the only convenient way for me to get my orders and i am willing to pay for the shipping fee of the pouch back and fort in my address ..but still they wont help me .what kind of service and treatment is that to your clients posting this complain is the only way i know to let the management know my complain …

  2. Hi Mary Jane,
    Thank you for your time to write a comment on our blog, as for your issue.I already e-mailed you so that we can fix the issue ASAP.
    Regards,
    Gilbert Bermudez

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