Businesses Are Losing $4 Trillion Due to Abandoned Shopping Carts – But Here’s What You Can Do
Can you imagine what grocery store parking lots would look like with $4 trillion worth of food abandoned in shopping carts? It’d be messier than an Interstate highway on The Walking Dead. But that’s exactly the scenario in the digital eCommerce space, according to a Business Intelligence report which found upwards of $4 trillion in items were abandoned in shopping carts in 2014.
But if you consider that by reducing abandonment by just 1%, an unprecedented $40 billion in revenue could be returned across the board to eCommerce merchants. The same Business Intelligence report states that 63% of sales (or $2.52 trillion) lost to abandoned shopping carts can be recovered if merchants implement proper shopping cart abandonment strategies.
So what can a merchant do to reduce shopping cart abandonment and better manage the process? Here are four things to consider:
Dynamic display ad solutions can help increase and drive traffic to merchant sites. By using collected purchase intent data, keyword data and media owner data, merchants can better target traffic that is most likely to convert and retarget those who abandon their shopping carts.
Shopping cart search solutions can help reduce bounce rates on merchant sites by conducting a quick product search that will present the shopper with relevant products from the merchant’s database when the customer shows signs of abandonment. This helps prevent the customer from leaving the site, increasing conversions and improving the ROI on search budget.
Chat, which a merchant can activate on their site during any stage of the customer journey, can proactively answer customer questions and offer promotions to engage the shopper with helpful tips that will steer them towards checkout.
Shopping cart email strategies, when implemented, can offer shoppers the opportunity to save their items for future use. Additionally, a reminder email sent to shoppers with a direct link to their cart gives them the opportunity to continue shopping right where they left off.
One company, VE Interactive, tracks over $68 million in attempted transactions per minute globally across 12.5% of the world’s internet commerce. The primary purpose of its platform is to keep shoppers moving through a merchant’s site all the way through checkout and, if they bail, bring them back and incent them to complete their purchase.
VE Interactive claims it can lift shopping cart completion rates 1-2% for retail, 4-5% for travel and 7-10% for software and services.
What does this percentage lift mean for you? Let’s say your online business averages 800 cart creations and 250 completed checkouts per day with an average cart order value of $50. So 550 carts are abandoned. By recovering 10% of abandoned carts, you could recapture about $82,500 in sales per month.
Nearly $100,000 is nothing to sneeze at, right? As a merchant, it would not only benefit your bottom line to consider abandonment prevention and remarketing technologies, but it would impact your performance overall. By working with a performance marketing solutions provider, you’ll be able to see how these solutions can be successfully integrated into your overall strategy.
But, that’s just the tipping point. Many shopping cart strategies involve immediately pushing the consumer to the next step. While this can be a good thing in some cases, in others, shoppers will simply load up their cart as a way of creating a “to buy” list that they’ll come back to later. Technologies like those developed by VE Interactive can help determine the intent of this behavior and, as a result, prevent wasted resources and money from being engaged too soon with a shopper who has displayed this behavior. This, of course, is a win.
Moving shoppers swiftly through the shopping cart process is, indeed, important. However, just as important is realizing consumer intent as it relates to the usage of their shopping cart so as to properly implement or – in some cases – pause additional efforts designed to encourage them to finally click the “buy” button.