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$4 Trillion in Abandoned Shopping Carts is Too Much to Lose

From the Editor's Desk
Jan 27th, 2015
  • Estimated reading time: 2 min read
  • Hummy's
    Highlights

    1What makes buyers abandon carts. 2Eliminate any roadblocks to checkout. 3Create incentives to complete transaction.
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Online Sales

Young woman using touch screen device for online shopping Photo Credit: tashka2000 Bigstock.com

Online shopping cart abandonment is predicted to cost online retailers four trillion dollars in 2015. Dan Leberman offers a ray of hope for business owners in his article “How to Avoid Losing $4 Trillion to Abandoned Carts” on Inc.com.

Leberman, VP of PayPal’s North American Online Small & Medium Business Unit says, “Estimates based on real market impact of existing tools implies that 63 percent (or $2.52 trillion) of that $4 trillion in unrealized revenue is recoverable.” Yet for some reason, most merchants aren’t utilizing these tools to help with recovery.

Tools to prevent cart abandonment:

1. Simplify the checkout process.

• Store your customers’ payment information to allow them to complete a purchase without entering credit card details for each transaction. This is one of the most effective ways to increase checkout conversion.

• Display simple, prominent buttons such as “Add to Cart” or “Checkout” on every page to encourage the customer to add items to the cart and to complete the checkout process. The location, color, and size of these buttons is very important so they should be thoroughly tested on your website.

2. Offer financing options

Providing your customers an attractive, deferred-interest credit card takes the sting out of shopping.

3. Retargeted emails

Lieberman says that a targeted email is often just the slight nudge a hesitant shopper needs to return and complete the transaction. However, relying only on email for retargeting is not advised, as it can sometimes come across as pushy.

“In addition to traditional marketing techniques to retarget (e.g., direct mail), more cutting-edge approaches like “display retargeting” are showing strong results,” he says.

4. Provide a seamless omnichannel experience

Using multiple channels to connect with your customer throughout the buying process enables the customer to start browsing online and later complete the transaction from a mobile device.

To read this article in its entirety, please visit Inc.com

About the Author

From the Editor's Desk

This article was written by a bizHUMM Staff Writer. We aim to provide practical tips that help solve your burning small business questions. If you have any suggestions or ideas for articles, please email them to: editor@bizhumm.com