Online
shopping surpassed in-store sales in the U.S. for the first time in
history this past February, signifying changing tides for the world of retail
and consumer preferences. With the rise of e-Commerce, consumers want more
convenience and more options when it comes to fueling their retail desires.
This phenomenon has gradually changed how they shop and their methodology for
making purchases, but with that comes the effects of many consumers failing to
close the loop upon checkout. Three out of four customers abandon their digital
shopping carts before making a purchase, which makes it a trillion-dollar affair for e-Commerce
merchants, according to a 2017 eMarketer
report. In fact, retailers across the board see shopping cart abandonment as a
high-priority concern, so what makes consumers go dark before closing the sale?
There are several reasons why a customer may drop their bag, but
these four reasons are the most common, according to the FIS 2018
U.S. Consumer
Behavior Report.
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1.
They don’t
have an account.
Understandably, retailers want every customer to set up an
account. But forcing customers to create an account was cited in the report as
the leading reason for abandoning a shopping cart. Data from the report
suggests that 36% of survey respondents claimed they would bail on a purchase
if required to create an account. Guest checkout options that speed them
through the process can help reduce conversion drop-off.
2.
Extra charges
for their payment method.
The shopping cart is the wrong time to surprise your customer with
extra charges, especially for their choice of payment method. There is very
likely a competitor who will cheerfully accept their payment at no additional
cost. Almost one in three consumers abandoned a purchase for this reason,
according to the report.
3.
Distrust
around payment security on the website.
High-profile data breaches continue to spook consumers. Online
shoppers must have absolute confidence that your site is secure before they
will enter payment details, and in the FIS survey, over a quarter of
respondents (26%) did not have confidence in the merchants they were buying
from.
4.
Too much data
entry.
Even having to enter address and payment information manually can
be enough to end a sale before completion. Up to 25% percent of respondents
indicated they abandon shopping carts if they have to input too many payment
details. Consider offering digital wallet options like PayPal, Apple Pay,
Google Pay, VISA Checkout, Mastercard Masterpass or Amazon Pay to streamline
the checkout process. These services enable autofill of key details at checkout
and securely authenticate purchases without ever having to grab a card.
Grasping the causes and cures of shopping cart abandonment can
help e-Commerce merchants boost conversions and increase sales at a time when
the retail industry is more competitive than ever. For online merchants, it
will take an omnichannel approach to persuade an end-to-end shopping experience
and encourage consumers to check the box before leaving their site. Driving
consumers to an e-Commerce page is one thing but coming full circle and
completing the transaction takes thoughtful strategy and requires merchants to
pave a clear path to purchase without hiccups or roadblocks. Based on the consumer
behavior report findings, it
is increasingly clear that a smooth and secure checkout experience is
merchants’ golden ticket for earning — and keeping — happy customers.
Casey Bullock is General Manager, Global eCommerce –
North Americas at FIS.
His current responsibilities include managing all commercial personnel working
directly with FIS clients in North America. Prior to FIS,
Bullock was vice president, general manager fraud solutions for Chase
Paymentech, and focused on the creation and delivery of enterprise-class fraud
prevention capabilities into the e-Commerce marketplace.
