A recent survey has revealed that an alarming 88% of Australian online shoppers abandon their carts before completing their purchases. This staggering statistic represents a $18 billion loss in sales revenue for E-Commerce stores across the country.
So, why do so many Aussies abandon their carts? The survey, commissioned by leading parcel delivery service CouriersPlease, identified several key reasons:
The top reason cited by shoppers for cart abandonment was high shipping costs. A whopping 63% of respondents said they abandoned their carts because the shipping fees were too expensive. This is a major concern for retailers, as shipping costs can significantly impact the overall cost of a purchase.
Another common reason for cart abandonment was finding a lower price elsewhere. A surprising 38% of respondents said they abandoned their carts after researching and discovering the same item at a cheaper price from another retailer. This suggests that Aussie shoppers are increasingly price-conscious and are willing to shop around before making a purchase.
In some cases, shoppers abandon their carts because they re-evaluate their need for the product. Twenty-nine (29) per cent of respondents said they abandoned their carts because they realized the product was unnecessary. This suggests that retailers need to provide more information about the product to help shoppers make informed decisions.
Inconvenient Delivery Options
Flexibility and convenience are important factors for online shoppers. Sixteen (16) per cent of respondents said they abandoned their carts because they were not satisfied with the delivery options offered by the retailer. This suggests that retailers need to offer more flexible and user-friendly delivery options.
Other Hidden Costs
Currency exchange fees and other hidden costs can also deter online shoppers. A significant proportion of respondents (26%) abandoned their carts after discovering additional fees associated with their purchases. This suggests that retailers need to be transparent about all fees upfront.
Wish List vs. Purchase List
Some shoppers use online shopping carts as wish lists, rather than actual shopping lists. Twenty-six (26%) of respondents admitted to using online shopping carts as wish lists, without any intention of actually purchasing the items. This suggests that retailers need to provide clearer messaging about the difference between wish lists and purchase lists.
Retailers Can Take Action
While the survey results highlight some challenges for online retailers, they also provide valuable insights and opportunities to improve the shopping experience and reduce cart abandonment. Retailers can implement strategic measures to address the key factors driving cart abandonment and enhance customer satisfaction.
1. Offer Competitive Shipping Costs:
Shipping costs remain a significant barrier for many online shoppers. Retailers should carefully evaluate their shipping costs and strive to offer competitive rates. This may involve negotiating better rates with shipping carriers, implementing free shipping thresholds, or offering tiered shipping options based on order value or delivery speed.
2. Clearly Communicate All Fees Upfront:
Transparency is crucial in building customer trust. Retailers should clearly disclose all fees, including shipping, taxes, and any additional charges, upfront to avoid surprises during checkout. This helps manage customer expectations and reduces the likelihood of cart abandonment due to unexpected costs.
3. Provide Flexible and Convenient Delivery Options:
Today’s consumers demand flexibility and convenience in their online shopping experiences. Retailers should offer a variety of delivery options, including multiple shipping carriers, expedited delivery services, and alternative delivery locations, such as pick-up points or in-store collection.
4. Educate Shoppers About the Product and Its Benefits:
Providing comprehensive product information can help shoppers make informed decisions and reduce product-related cart abandonment. Retailers should offer detailed product descriptions, high-quality images, customer reviews, and interactive features to enhance product understanding.
5. Make it Easy for Shoppers to Track Their Orders:
Order tracking allows customers to stay informed about the status of their purchases, reducing anxiety and minimizing cart abandonment due to perceived delays or delivery issues. Retailers should provide real-time order tracking information and proactive notifications to keep customers updated.
6. Offer a Seamless and Hassle-Free Checkout Process:
A smooth and streamlined checkout process is essential for converting shoppers into paying customers. Retailers should minimize the number of steps required to complete a purchase, optimize the checkout page for usability, and offer multiple payment options for convenience.