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Cart abandonment is a common problem that almost all online merchants face at some point or the other. Cart abandonment is when consumers add products to their cart but do not complete the checkout process. They do not buy the products or pay for them. This results in a loss of revenue for the merchants.
While consumers can be indecisive at times, this practice of not closing the purchase weighs in heavily on the merchants particularly during the festive season given the marketing expense involved.
Some of the common reasons for such abandonment include –
• Additional charges on the product at the time of checkout
• The inconvenient or complex user interface at the time of checkouts
• Limited payment options
• Limited coupons or offers on payments, etc.
Since cart abandonment is a serious concern among online merchants, they can look at different ways to rectify this practice. Here are four effective ways in which online merchants can alleviate the problem of cart abandonment.
1 – Optimize the checkout process
One of the first steps in countering cart abandonments is to optimize the checkout process. If customers experience friction at the time of checkouts, they are more likely to abandon their carts. The checkout process should be as simple as possible. Online merchants should use autofill options for repeat customers. This will allow customers to avoid the hassle of multiple steps every time they make a purchase and will enhance the checkout experience by making it quick, reducing the probability of cart abandonment.
2 – Limit or remove additional costs at the time of checkout
Adding additional delivery, GST or other costs on the products at the time of checkout demotivates the customers while closing the purchase. Merchants should, therefore, be transparent about these costs right from the start so that customers are aware of them while considering the product and not at the time of checkout.
3 – Use remarketing techniques
Abandoned carts aren’t the end of the journey for the consumer and it shouldn’t be for the merchant either. Online merchants have the option to remarket the products to customers after cart abandonment. Try sending personalized emails, mobile notifications, online adverts, and other promotional mailers to clients. The idea should be to motivate them to return and complete the purchase. If done right, this can be a powerful tool to show your customers just how much you care.
4 – Allow simple payment options
Another common reason why consumers abandon their carts is the lack of simplified payment options that can complete the checkout process in seconds. Whatever mode of payment customers choose – credit cards, debit cards, net banking, UPI, etc. make the experience seamless. Many customers these days look for one-touch payment facilities to complete their payments instantly. Offering Buy Now Pay Later (BNPL) on your checkout page could be one solution.
When consumers choose the BNPL system of payment, they purchase in credit and their bill is added to an online BNPL account. Thereafter, the aggregate payments are cleared once in 15 or 30 days as provided by the BNPL platform.
The BNPL mode of payment is beneficial for customers because –
• It is simple
• It allows them to accumulate their bills in one account and pay at once rather than paying multiple times
• Since it has a capping on the maximum credit allowed, the chances of default are minimized
• It allows customers to do a one-touch checkout when they are in a hurry
• It has no hidden charges and offers the convenience of payments
Online merchants stand to make big sales during this time of the year and should, therefore, make sure that the consumer is catered to when it comes to their shopping experience. A happy customer ultimately translates to a sales conversion.