How to Increase Conversion Rates on E-Commerce Websites
Why Carts are Abandoned
The first thing you have to figure out is why your potential customers are abandoning the cart on your e-commerce site. There are a multitude of possibilities to consider, some of which you can do little to correct. However there are a few key reasons carts are abandoned that you can and should address. Here are a few of the top reasons a customer would fill a cart and then leave it un-purchased:
- Shipping costs too high
- Long complicated check outdated
- Website crashed
- Site didn’t feel secure at the checkout point
- Forced registration for an account
- Limited payment options
Now, a few of these you have little control over such as high shipping costs or taxes and people who are just browsing your site and products. Nevertheless, a couple of the top reasons people drop the cart like its hot, you can have a direct impact on, forced registration and complicated checkouts are well within your ability to alter.
First off your checkout process should be smooth and as simple as humanly possible. When you force customers to fill out three pages of information and verification, they get tired of the red tape and simply click the X at the top of the page! You have lost a right now sale and any potential return sales as well. Work with your web design team to correct any complications as soon as possible.
Research shows that this one alteration can equal a 35% increase in conversion rates. Roughly translated into real money that means if all e-commerce sites were optimized at checkout, they could collectively bring in $260 billion more in revenue. That is how much revenue is lost just in abandoned carts due to complicated checkouts. Let that sink in for a moment!
It makes good business sense to have your customers contact information, but forcing people to register on your site is going to increase your number of abandoned carts. Ask yourself the question, would you rather get the sale now and trust your quality product or service to bring them back or lose some sales so you can get their contact information for future sales attempts? A good e-commerce site should offer guest checkouts.
How many ways can customers pay for their purchases? Do you offer a PayPal button? The more options you can provide the fewer abandoned carts you will have. Everyone has their preferred method of payment and if your e-commerce site does not take it, they will find one who does.
How much money is your e-commerce site losing every year due to abandoned carts? Depending on the size of your company, this figure could be well over six figures. In all honesty, is any money lost to preventable abandoned carts acceptable? You may not be able to push through a sale for the browsers or those considering gift options, and you cannot really affect shipping or taxes. However, you can have a direct impact on two of the leading causes of abandonment which are a complicated process and forced registrations. Fixing this problem may take a little time and effort, but in the long run isn’t your business worth it? Rescue as many abandoned carts as you can, and enjoy the profits!