Abandoned carts: The Profit and Loss for your Wix Store
Updated: Mar 24
If you're an industrious e-commerce store owner but not seeing the desired outcomes, it's likely due to abandoned carts on your site. To retrieve these lost sales, keep reading.
A recent study proves that E-commerce stores lose a total of $18 billion annually only due to abandoned carts. An average of 69.99% of carts are being abandoned. This blog post will explore the meaning and impact of abandoned carts on your business, as well as the reasons behind them and potential solutions for recovering them.
Contents:
What is an Abandoned Cart?
What leads to Abandoned Carts?
What are the solutions that can be used to recover Abandoned Carts?
What is an Abandoned Cart?
In e-commerce, an abandoned cart occurs when a customer selects items for purchase but then leaves the website without completing the transaction, leaving the items "abandoned" in their virtual shopping cart.
Recent research from the Baymard Institute shows that 58.6% of customers in the United States have abandoned their shopping carts within the past three months, and studies indicate that the rate of abandoned carts among mobile users alone is as high as 85.65%.
Cart abandonment is a widespread challenge faced by online retailers, but this blog will offer actionable insights on how Wix store owners can recover lost sales from abandoned carts.
What leads to Abandoned Carts?
There are five main reasons why customers may abandon their shopping carts. Here are some common factors that can contribute to cart abandonment:
Unexpected costs: Unexpected costs, such as shipping fees, taxes, and additional charges, can catch customers off guard and cause them to abandon their shopping carts. The Baymard Institute's research has revealed that 48% of customers in the United States abandon their carts due to unforeseen expenses. The application of hidden costs can severely impact the customer experience, erode trust, and damage loyalty to the business. In addition, a study found that 61% of shoppers abandon their carts due to shipping and handling costs. Other factors that contribute to cart abandonment due to unexpected costs include surprise fees at checkout, taxes, and additional charges for specific items.
Complicated checkout process: A checkout process that is too lengthy, complicated, or confusing can be a major source of frustration for customers and contribute to cart abandonment. According to research by the Baymard Institute, 17% of online customers in the United States abandon their carts due to checkout processes that are too long or complicated. When the checkout process is excessively drawn out, the abandonment rate jumps to 28%, meaning that 1 out of 5 customers abandon their cart for this reason alone. Furthermore, limited payment options can also significantly increase the likelihood of cart abandonment. A study by Worldpay found that when customers are unable to use their preferred payment method, it can cause up to 27% of them to abandon their cart.
Technical issues: When technical issues arise, such as slow loading times, errors, or crashes, customers may encounter difficulties completing their purchases. Implementing responsive design, where a website is optimized for various screens, can be helpful for many customers. Technical problems must be addressed, as studies have shown that the average rate of abandoned carts from mobile users alone is as high as 85.65%. Furthermore, slow website speeds can also contribute to an increased rate of abandoned carts. Research indicates that a one-second delay in website speed can result in an 11% decrease in page views, while a three-second delay can cause a 40% abandonment rate. During the payment process, encountering error pages can also lead to cart abandonment. A 500 error page, for example, can cause a 2% abandonment rate. In addition, technical errors related to payment processing, such as declined credit or debit cards, can result in a 15% abandonment rate.
Lack of trust: When customers lack trust in a Wix website or its payment methods, they may abandon their shopping carts. Concerns over the safety of personal and financial information during online transactions can make customers hesitant to complete their purchases. Furthermore, if a website appears outdated or unprofessional, customers may be reluctant to trust it, leading to abandoned carts. Negative reviews or complaints about products or services offered by the website can also contribute to a lack of trust and abandoned carts. Additionally, if a website only offers unfamiliar payment methods or the payment process is unclear and confusing, customers may lose confidence in the website and abandon their carts.
Comparison shopping: Customers may leave their shopping carts for various reasons, such as comparing prices or products with other Wix stores, changing their minds, or deciding not to make a purchase after all. Online research is common before making a purchase, with 81% of customers conducting research, and 61% conducting research before completing the payment. According to a study by RetailMeNot, 69% of customers have abandoned a cart due to finding a better deal elsewhere, showing that customers are willing to switch to a competitor if they offer a better deal. Another study by SaleCycle indicated that 60% of customers abandon their carts due to better deals being available elsewhere.
By identifying the reasons for cart abandonment, Wix store owners can take measures to minimize abandonment rates and ensure abandoned cart recovery.
What are the solutions that can be used to recover abandoned carts?
There are 5 main solutions that businesses can use to recover abandoned carts:
Send Abandoned cart Emails: To recover abandoned carts, it is advisable for Wix stores to prioritize sending reminders to customers about the items in their cart, accompanied by a compelling call-to-action (CTA) to encourage them to complete their purchase. Email reminders can also include incentives such as discounts or free shipping to entice customers to return to the website and complete their purchases. Research conducted by SaleCycle reveals that abandoned cart emails have an average open rate of 45% and a click-through rate of 21%, indicating that they can be an effective tool for recovering lost sales.
Optimize the checkout process: To minimize cart abandonment rates, it is recommended to streamline the checkout process by simplifying the number of steps required and eliminating any unnecessary fields. This can help prevent customers from abandoning their carts due to a lengthy or complex checkout process. According to a study conducted by Baymard Institute, 17% of customers in the United States have abandoned a cart due to the checkout process being too long or complicated. The study suggests that an ideal checkout page should have approximately 12-14 elements. Fortunately, this issue is resolvable, and the study shows that a conversion rate of 35.26% can be achieved through modifications to the checkout process.
SMS Marketing: To recover abandoned carts, utilizing SMS as a strategic channel can be highly effective in encouraging customers to complete their purchases. By offering incentives such as discounts or free shipping via SMS, businesses can motivate customers to return to their shopping carts and finalize their purchases. Personalizing the SMS can also help re-establish the connection with the customer, potentially leading to a quicker purchase decision. SMS marketing is considered an ideal option due to its higher open rate of 98% and click-through rate of 35%, significantly surpassing other communication mediums like email or social media platforms.
Abandoned Cart Workflows for SMS and Emails: When it comes to recovering abandoned carts, timing the sending of abandoned cart emails is critical. According to a study by SaleCycle, sending the first abandoned cart email within an hour of the customer leaving the website can result in an average open rate of 48.1% and a click-through rate of 18.2%. According to some studies, the recovery rate for SMS can be as high as 20-30%. Studies show that the conversion rate gained out of SMS can lead up to 30-50%. According to one study, sending a reminder via SMS within one hour of abandonment can lead to a conversion of up to 20%. Additionally, sending a series of abandoned cart emails can further increase the chances of recovery, with the second email resulting in an open rate of 33.3% and a click-through rate of 10.7%. By sending timely and relevant abandoned cart SMS and Emails, businesses can recover lost sales and increase their revenue.
Creating Urgency: Businesses can leverage the fear of missing out (FOMO) to encourage customers to complete their purchases by creating time-bound discounts. Limited-time offers, such as a discount or free shipping for 24 hours or a few days, can create a sense of urgency and prompt customers to return to the website to complete their purchase. By employing this strategy in an honest and transparent manner, businesses can increase the chances of recovering abandoned carts and ultimately boost their sales.
By considering and implementing all the above solutions, businesses can increase the number of recovery of abandoned carts, leading to increased revenues.