eCommerce shopping cart abandonment is roughly 70%, according to an analysis by the Baymard Institute. The good news is that many of the factors driving customers away are entirely in your control.
For instance, 34% of shoppers abandoned checkout when they had to create an account, and 55% did so because of unexpected costs. Transparency and guest checkout are fixes that directly improve cart conversion rates, and they are within any digital subscription or ecommerce brand’s control. Improved site design and load times, along with security and payment localization, can also significantly reduce abandonment rates and drive conversions.
10 Ways to Reduce Cart Abandonment
1. Provide Locally Preferred Payment Methods for Each Market
Customers are far less likely to complete a purchase if they can’t use their preferred payment methods. But for merchants operating in multiple markets, it can be difficult to stay ahead of payment trends.
In Mexico, for instance, cash and vouchers are still common. That’s why it’s critical to work with payment vendors that make it easy to add locally preferred methods into your checkout experiences.
2. Localize Your Entire Site Experience
Do a deep dive into consumer behaviors in each market, and find out whether people favor in-app shopping or whether they prefer mobile or desktop sites. Analyze when they shop, what types of goods and services they favor for ecommerce and whether there are any cultural expectations around deliveries and return policies.
Rapyd’s Country Guides provide detailed consumer payment preference data for individual countries. They are a great place to start when looking to localize payment methods.
3. Improve Site Load Times to Reduce Frustration
If a site takes a long time to load or checkout drags on, people will look for other places to shop. One Google analysis found a 20% drop in cart abandonment after sites sped up their load times.
Walmart boosted its conversion rate by 2% for every second it shaved off its site loading speed. Businesses can improve their load times by shortening server response times, combining code files and minimizing HTTP requests, according to Crazy Egg. Content Delivery Networks like Akamai and Moovweb offer solutions that can improve load times and user experiences.
4. Offer Free or Low-Cost Shipping and Returns
Free shipping makes consumers feel that they are getting a deal, especially when combined with free returns. The purchase is less risky if they know they can return the item without a financial penalty.
Amazon is perhaps the most famous example of a company whose success is largely tied to its free shipping policy. A recent survey revealed that even customers who view Amazon negatively continue to order goods from its marketplace because of free shipping. But 25% said they would not buy from Amazon if the company didn’t offer free shipping, and 39% said they didn’t know whether they would continue to use the service if free shipping wasn’t an option.
5. Avoid Sticker Shock by Being Transparent About Taxes and Shipping Costs
SEMrush reported that 56% of shoppers abandon their online purchases because of added costs such as shipping rates and taxes. Give people all the information they need by calculating taxes and fees early in the buying process. Adding a shipping calculator will help customers see the true cost of the purchase based on their location.
6. Offer Installment Plans
Installment payment plans are especially popular in Latin America because consumers can buy goods immediately and pay them off over time. More digital shoppers in Brazil paid by credit card installments than any other method in 2018. This option works well in developing markets beyond the LatAm region as well because they provide an affordable way for shoppers to engage in ecommerce. Merchants collect credit or debit card data when the arrangement is made, and cards are charged at set increments.
7. Optimize Checkout for Different Devices
Design and test the checkout experience across devices. If someone is on a mobile site, checkout should be just as seamless as the desktop version or app checkout. Mobile completion rates were only 8.5% as of last year, showing a huge opportunity for businesses to better convert on mobile.
Seven in 10 online customers in India buy via mobile and 57% shop through social media. Mobile devices are also key in Europe, where a majority of shoppers in Germany, Spain and the U.K. reported using a mobile tablet or smartphone to shop online at some point in 2018.
8. Showcase Trust Logos and Verification Protections
Security fears play a significant role in whether shoppers abandon their online purchases. Having an SSL certificate and prominently displaying trust logos indicate that a company takes security seriously and will protect consumers’ financial data. This is especially important for cross-border shoppers, who may not have the same level of trust and familiarity with your brand.
9. Send a Follow-Up Email
Occasionally shoppers will get distracted before they complete checkout, or they might have second thoughts after seeing the total price. A follow-up email with a discount code or special promotion may entice them to come back and finish the purchase since they’re now getting a deal.
10. Simplify Identity Verification and Sign Up
Consumers value security, but they also want a frictionless ecommerce experience. That includes easy identity verification and a streamlined process. Integrating existing identity verification systems, such as India’s Aadhaar Programme or Singapore’s national digital identity platform, can make ID verification frictionless in those countries. Payment providers that integrate fintech into their offerings can simplify this process by providing built-in identity verification.
You can also improve conversion rates simply by consolidating unnecessary form fields, like automatically detecting card type and making first and last name one field instead of two. Built-in address checkers and auto-fill services like Loqate or Google Location API can further streamline the process and make sure forms don’t get in the way of sales.
It’s All About User Experience
Delivering an experience that meets the needs of each unique market is crucial to building a thriving international ecommerce business. Reducing cart abandonment begins with designing around the customer. Creating checkout experiences with a global audience in mind is the first step toward a best-in-class site, app and checkout process anywhere you do business. But security, transparent pricing and customization are key as well.
Connect with Rapyd
The Rapyd Global Payments Network helps businesses access the world’s largest local payment network with more than 900 locally preferred payment methods, including bank transfers, ewallets and cash in more than 100 countries.
Download Going Global: Rapyd’s Guide to the Fastest Growing Local Payment Methods for 2020 to unlock the payment trends that drive conversions.