Cart abandonment has been a burning issue that e-commerce organizations can no longer ignore. According to Forrester research, this issue causes e-Commerce brands to lose up to USD 18 billion yearly sales revenue . Hence, it becomes imperative for companies to devise effective solutions to address this significant challenge, including:
- Streamline checkout process;
- Accelerate delivery time; and
- Implement robust website tools for faster loading speed.
Effortless payment with a frictionless checkout
A significant driver behind cart abandonment is the presence of a lengthy and convoluted checkout process. Astonishingly, 50% of Americans express a reduced likelihood of completing an online purchase if the checkout process extends beyond 30 seconds . To address this critical issue, e-commerce stores will need to:
- Create a logical sequence - A disjointed payment flow, characterized by unclear navigation or confusing terminology, can pose challenges for customers as they attempt to navigate the required actions and determine the correct order of steps. Thus, a well-designed checkout process should adhere to a logical sequence of steps, seamlessly guiding customers through each stage.
- Collect necessary information - During the checkout process, requesting excessive information can adversely affect customer satisfaction and perceived efficiency. Overwhelming customers with unnecessary or irrelevant details, such as phone numbers, date of birth, or gender, can be intrusive and time-consuming. 86% of Americans believe businesses and organizations collect more information than is needed . Unwarranted information requests not only disrupt this expectation but also act as deterrents, with 35.9% of participants indicating that a brand's demand for excessive information causes them to lose trust .
- Diversify payment methods - Providing a diverse range of payment methods can be beneficial, as it accommodates the varied preferences of customers. However, if customers are required to install additional applications or navigate to external payment gateways, it introduces complexities that significantly raise the risk of cart abandonment. A well-chosen payment gateway can reduce abandoned carts by 50%, ensuring a simple and convenient checkout experience and enhancing consumer conversion rates .
- Create an adequate checkout design - Poorly designed interfaces, cluttered layouts, and unintuitive form fields can create confusion and make it challenging for customers to enter their information accurately. Furthermore, a lack of visual cues, progress indicators, or clear error messages can exacerbate confusion and lead to abandonment. As an average large-sized e-commerce site can achieve a 35.26% increase in conversion rate through better checkout design alone , e-commerce companies should focus on refining the design of the checkout page to facilitate a frictionless experience.
The quicker, the better
Order fulfillment and delivery times are core factors for customers when making purchasing decisions. While 41% ranked fast and reliable delivery as a top consideration , 32% of global online customers have abandoned a purchase because the estimated shipping time was too long .
Hence, to address the issue of long delivery times in e-commerce, integrating specific technologies can revolutionize the efficiency and speed of order fulfillment. The possible solutions include:
- Logistics management software - By automating carrier selection, route optimization, and real-time package tracking, retailers can expedite the movement of goods from warehouses to customers. This automation minimizes delays, improves delivery accuracy, and enables proactive customer communication, resulting in shorter delivery times and increased customer satisfaction.
- Last-mile delivery technology options - Last-mile delivery technology solutions' role in enhancing the delivery process's final leg cannot be overstated. Retailers can significantly improve visibility and efficiency in their last-mile operations by harnessing route optimization algorithms and implementing delivery tracking apps. These innovative solutions facilitate better route planning, real-time monitoring of delivery progress, and optimal resource allocation, enabling faster and more reliable deliveries. Besides, retailers can allow customers to personalize their last-mile delivery options by providing in-store or curbside pick-up, shipping directly from physical stores, and smart parcel delivery lockers. With 81% of retailers ramping up their investments in advanced last-mile logistics strategies , e-commerce stores should adopt these strategies and elevate the overall customer experience.
- Incorporate delivery partners - Incorporating multiple partners emerges as the preferred approach. While opting for a single carrier may present more attractive rates initially, it is associated with the inherent risks if the carrier's capacity falls short. On the other hand, adopting a multi-carrier model enables retailers to provide customers with a broader array of options, including expedited or cost-effective choices (especially for time-sensitive deliveries that require a guaranteed arrival date). According to a survey by Accenture, 50% of respondents blame delivery issues on the brand . This finding underscores the crucial importance for retailers to establish a robust delivery strategy that can validate delivery before purchase.
Fast loading speed for a fast-paced industry
It's truly exasperating when a website fails to meet consumers' urgent cravings or requirements. Surprisingly, 90% of shoppers abandon their carts if they encounter a sluggish website loading speed . Hence, to expedite a website’s loading speed, enterprises should:
- Optimize website performance: website optimization plays a pivotal role in maximizing conversions. With 81% of marketers recognizing the detrimental impact of slow-loading websites , taking swift action to improve infrastructure and design is crucial. Implementing techniques like caching, image compression, and code minification helps streamline loading times. Additionally, leveraging caching mechanisms to store frequently accessed elements locally on users' devices and utilizing Content Delivery Networks (CDNs) to distribute content globally accelerates access, delivering an exceptional browsing experience for users across various geographical locations.
- Prioritize mobile shopping: Optimizing the website for mobile users is essential with the increasing use of mobile devices for online shopping. Implementing responsive design techniques and optimizing images and content for mobile viewing will enhance the mobile shopping experience and reduce abandonment rates. Notably, 60% of consumers prefer mobile shopping apps over mobile sites due to the superior user experience .
- Invest in robust web hosting: A website loading speed can be a make or break for the e-commerce industry. Users can be frustrated with a slow website, leading to higher bounce rates, decreased conversions, and potential loss of customers to competitors. Therefore, having a reliable and scalable hosting solution is essential to ensure optimal performance, especially during increased traffic. Research indicates that 88% of customers prefer to shop with businesses offering a high-performance user experience . By investing in an efficient hosting service, e-commerce stores can provide a seamless shopping experience, mitigate cart abandonment risk, and consistently maintain fast website loading speeds.
See how FPT Software accelerated a multinational corporation’s website loading speed in 4.5 seconds: 4.5 Seconds to Forge Ahead of Digital Transformation - E-commerce Revamp for a Multinational Manufacturing Corporation.
Paving the way for a seamless experience
The e-commerce industry is experiencing unprecedented acceleration, accompanied by soaring customer expectations for swift and seamless shopping experiences. Businesses can reclaim lost sales by implementing strategies that cater to these demands. This includes optimizing the online checkout process to ensure a seamless and logical sequence and minimizing the need for redundant information requests. Furthermore, recognizing the industry norm of fast delivery, incorporating last-mile delivery technology solutions, and collaborating with multiple delivery partners become crucial for success.
Lastly, prioritizing speed by offering a robust website experience, facilitating mobile shopping, and leveraging reliable web hosting services is also necessary. By comprehensively addressing these critical areas, businesses can unlock the keys to mitigating cart abandonment, realizing significant financial gains, and fostering unparalleled growth.