Why Online Shoppers Don’t Complete The Sale

Last week, we had a post on what things online shoppers want to retailers to improve upon.  One of the biggest problems many online retailers are dealing with is shopping cart abandonment.  New research has been developed that shows why digital shoppers don’t complete the sale.

• 70% of consumers add items to their online shopping carts but do not complete the purchase – the total cost to US online retailers is estimated to be over $18 billion

• Nearly 60% of those who abandoned their carts were not ready to purchase, but wanted to get an idea of how much shopping costs were

• 56% were not ready to purchase but wanted to save the cart for later

• 55% did not complete the sale because they thought shipping costs were
too high

• Just over half didn’t complete the purchase because their order was not large enough to qualify for free shipping

• Four in 10 said shipping and handling costs were listed to late

What Does This Mean To You

You’ve taken the time to develop an ecommerce solution and committed resources to driving traffic to your site.  Now you’ve put all this effort in and customers are not completing the sale – evidence is pointing to shipping being the main reason.  There are several strategies you can use to help sway customers into completing the sale.

• Offering free shipping may not be financially feasible for all businesses, but how valuable is a database of shoppers to your company.  You can offer free shipping to customers if they join a loyalty club or at least sign up for alerts for your business.  This not only gives them the free shipping they want,
it helps your business keep customers engaged and forms a relationship
with them.

• Develop a shopping cart alert system.  If you’ve got the email address of  customers who have not completed a sale, contact them and offer a discount for them to finalize the purchase

• Investigate lower cost shipping alternatives or local pick-up options to help consumers save money

• Create a referral or social media program where shoppers can earn discounted shipping for directing friends  & family to your business

Your online business can be an important revenue stream – if customers complete the sale.  Take some time to go through the checkout process and make sure it runs smoothly.  Also do this with friends and employees.  You may find that there are hiccups in the process or those removed from the site may find it clunky or not user friendly.  For more information on developing online revenue, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: eMarketer; comScore; Listrack

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5 responses to “Why Online Shoppers Don’t Complete The Sale

  1. There should be an incentive for customers to shop online. Free shipping or a pick up place should be considered. Importantly customers get the same price when they see and touch, why m

  2. Maybe/perhaps/likely the study that ATC did over a year ago indicates that the majority of shoppers for autos spend up to a year in ‘research’ of ….

    • Michael – Thanks for adding to the conversation, There is a lot of data that points to the larger the purchase, the more research that goes into the purchase process. Vehicle buyers, in particular, spend a great deal of time “kicking tires” before the purchase. Often the decision to make a vehicle purchase is based on a many different factors from age of vehicle to the sudden realization that an expensive repair is needed. Then often times the decision is not brand is going to be purchased, but where the purchase is going to be made.
      Thanks
      Al

  3. I think making shipping information available without using the checkout would be a wise thing, and not just telling how much but using scripting to show the price total on items without adding to shopping carts.

    The truth is there are millions of sites online and its just as easy to go to the guys who make the shopping experience the most pleasant.

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