Abandoned carts are often considered an unavoidable result of running an eCommerce store. According to Forrester Research, eCommerce businesses are losing $18 billion in sales a year because 69.5% of all shopping carts get abandoned. These statistics are alarming, and for the many organisations that are adjusting to eCommerce as a vital sales channel (since March 2020), they can have a significant impact on the success of their online store. What solutions are there to help mitigate this very costly issue?
Solving Abandoned Carts
A standard solution is to offer discounts or rewards to entice buyers into completing their purchases. This strategy is driven by the assumption that cost is the dominant factor in not completing the sale. Although this can be true in some cases, simplifying the cause down to cost is often an easy misunderstanding of a customers intentions. In addition to oversimplifying, it can also be harmful to your bottom line. Solving abandoned carts by reducing your profit margin is not a sustainable long term solution as it trains your customers to wait before buying to get a lower price.
Solving abandoned carts by reducing your profit margin is not sustainable solution... it trains your customers to wait for a cheaper price.
Buyer Attention-Deficit-Disorder
There are many factors to consider when trying to understand why abandoned carts occur so frequently, but in our opinion, the most overwhelming factor is customer distraction.
For example, mobile devices currently account for over 80% of all website traffic. With mobile access comes notification distraction. A call, text, social media notification or reminder, for example, can all arrive and take your customers attention away from their purchase.
In B2B eCommerce, purchases are almost always made during working hours, and we all know that during working hours comes a whole host of distractions and interruptions that derail even the most critical of tasks. For each eCommerce store, there will be different reasons for a high rate of abandoned carts, and this is why it is essential not to assume that price must be the objection. The keys to reducing abandoned carts are taking action, measure the results and improving your actions time and time again based upon your customers response.
Start Recovering Revenue
Taking action against abandoned carts sounds easy, but depending upon your eCommerce solution or service provider, it can often be time-consuming and hard to manage. At ES Tech Group, we offer a comprehensive abandoned cart feature that comes as standard with our EvolutionX eCommerce platform.
Since its launch in June, EvolutionX customers have recovered a huge $494,789 from a total of 2282 recovered carts. The figures continue to rise each month and are showing no signs of slowing down. Plus, our data shows that the number of customers responding to discounts or rewards as a driver is close to zero, with only a handful of promo codes being used.
What is clear is that EvolutionX distributors and manufacturers are utilising the abandoned carts features to communicate effectively with their customers and bring them back to complete purchases with continuously improving results.
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