When you go to a grocery or department store and start adding items in your cart, you are most likely committed to buying all the items and taking them home.
However, in the virtual space of e-commerce, consumer behavior is different.
Due to various reasons, consumers may treat the cart like a wish list, putting a variety of items in it without really committing to purchasing these items. Often, these potential customers simply close their browsers without following through with payment.
Studies about cart abandonment have varying results, pegging the average rate from as low as 55% to as high as 80%. In a study by Barilliance, the cart abandonment rate in 2016 was pegged at 77.24% or 3 out of 4 shoppers abandoning their cart.
Cart abandonment happens for many reasons, which this article intends to shed some light on. In addition, we’ll provide solutions and strategies to combat this problem and help e-commerce entrepreneurs unlock their online businesses’ full potential.
Common Causes of Cart Abandonment
1. Shipping Surprises
In the Philippines, high shipping costs can be a deal-breaker for a lot of shoppers. With many islands in the archipelago lacking logistics and transport infrastructure, shipping can sometimes cost a lot of money. So, if a customer in a far-flung area were to add to their cart without thinking about the cost of shipping, they may be surprised at the final price that includes the sizable shipping fee.
Online customers, just like in other retail environments, appreciate clarity in pricing. Unexpected shipping fees can quickly send them packing. Hence, be upfront about shipping costs. Better yet, offer free shipping whenever possible, or at least clearly state the charges early in the shopping process. After all, transparent pricing builds trust.
2. Complex Checkout Process
In general, shoppers value quick and efficient service. A convoluted checkout process with too many steps can lead to frustration. That’s why it makes sense to streamline your payment process, provide guest checkout options, and minimize distractions.
If you have an e-commerce store in the Philippines, you can check out the leading payment solutions providers like Maya Business. This fintech or financial technology company offers a payment gateway product that can simplify your checkout process. With their Maya Checkout solution, your e-commerce store can reduce the cart abandonment rate caused by a cumbersome payment procedure.
Aside from employing a payment gateway, you may simply display a payment QR code on your website that customers can scan to enable payment. With this QR code payment solution, customers can take advantage of an efficient QR Ph-compliant payment method. What’s more, you can post your business’s QR code on your website or social media accounts for a convenient scan-to-pay scheme that customers can use even without going to your e-commerce site. By enabling QR code payment, Philippines’ businesses can streamline transactions and enhance customer convenience
3. Security Concerns
Trust is of paramount importance to Filipino consumers. This explains why security concerns regarding personal and financial information can lead to cart abandonment. To resolve this issue, ensure your website exudes trustworthiness by getting a Secure Sockets Layer (SSL) certification, making your privacy policy as clear as possible, and securing trust seals from better business bodies.
It’s also important to reassure customers about the security of their payment. For this reason, you should use only trusted payment gateways, such as Maya Checkout.
4. Limited Payment Options
The Philippines’ preference for cashless transactions is increasing. According to a study by Visa, 60 percent of Filipinos are carrying less cash, while 84 percent have tried going cashless in 2021. That’s why when it comes to online purchases, consumers expect that they can use their preferred method of cashless payment.
With the Maya Checkout payment gateway, your e-commerce website can accommodate a variety of cashless payments—from credit and debit cards to QR codes and digital wallets. Your customer will appreciate the payment flexibility your site provides.
5. Website Performance Issues
Slow-loading pages or website crashes can be exceptionally frustrating for shoppers. As such, make sure to invest in reliable hosting and optimized pages to ensure faster loading times. Furthermore, regularly monitor and fix any technical glitches to keep the shopping process smooth and seamless.
6. Comparison Shopping
Filipino shoppers are known for their budget-conscious habits. Before making their final decisions, they often compare prices across different websites.
To make sure that they give you repeat business, offer price-match guarantees and loyalty programs. Highlight the benefits or value propositions that distinguish your products from those offered by your competitors. All these can incentivize customers to purchase through your store instead of shopping elsewhere.
Proven Cart Recovery Strategies
1. Send Abandoned Cart Emails
Craft personalized and friendly abandoned cart emails that remind customers about their incomplete purchases. To sweeten the deal, offer discounts or free shipping as incentives, but keep the tone confident and professional.
2. Consider Retargeting Ads
Consider using retargeting ads on platforms like Facebook, which is popular in the Philippines. In the ad, showcase relevant products and promotions to entice the buyer to complete their purchase. In addition, include a friendly call-to-action about returning to their abandoned cart.
3. Provide Live Chat Support
Deploy friendly and professional live chat support to assist customers as they browse your website. With real-time assistance, customers can directly ask about a product and receive a prompt reply. With all of their questions answered about the products they’re looking to buy, they’ll be more likely to commit to purchasing.
4. Offer Free Returns or Guarantees
Provide assurances of satisfaction, such as free returns or guarantees. Shoppers always appreciate businesses that stand by their products, so make your return policies clear, and offer product warranties, whenever possible.
5. Abandoned Cart Analytics
Analyze cart abandonment data that are specific to your market for a more accurate picture of why cart abandonment is happening. Armed with this information, make data-driven decisions with confidence and clarity.
Final Words
Cart abandonment is a reality faced by e-commerce businesses around the world. However, businesses can overcome this particular challenge by understanding its common causes and implementing proven recovery strategies tailored to the local market.
It’s time to address cart abandonment and recover those precious lost sales. Start implementing these strategies today, and watch your e-commerce business thrive.