In the intricate realm of online commerce, a thorny challenge persists – cart abandonment. Shoppers initiate transactions but halt just short of completing their purchases.
This phenomenon has puzzled retailers globally, leading to lost revenues and unrealised potential. However, a new whitepaper by JCB International Co., Ltd aims to shed light on this issue.
The ‘Click into Place | Unpacking Cart Abandonment‘ whitepaper shares expert tips for merchants to take a proactive approach to tackling cart abandonment.
It is estimated that up to 70.19 per cent of customers globally abandon their online shopping carts before completing their purchases, and that figure is even higher in the Asia Pacific region.
For every 10 people who add items to their cart online, seven choose not to complete the purchase. Customers who leave their online shopping baskets dormant – and exit the website entirely – often do so in
frustration. This represents a significant amount of lost revenue for merchants in the online space.
Reasons to leave
According to JCB, a global payment brand and a leading credit card issuer and acquirer in Japan, there are three primary factors contributing to cart abandonment and outlines corresponding solutions for each challenge.
The first factor is the payment journey, which often presents a significant hurdle for customers. Practical solutions are proposed to streamline the payment process, aiming to simplify it and consequently lower cart abandonment rates.
The third and final factor revolves around the failure to respond to external elements like shifting market trends and evolving consumer behaviours. In this regard, the whitepaper also suggests strategies for merchants to proactively stay abreast of changes, ensuring they remain adaptable within the ever-changing e-commerce and economic landscape.
How to tackle the issue
JCB’s whitepaper presents a series of strategic solutions for online merchants. The paper emphasises the importance of diverse payment methods, catering to regional preferences, and ensuring international payment options are available.
The whitepaper also recommends the incorporation of trust-enhancing technology, such as 3DS authentication, and highlights streamlining the checkout process as a key tactic. Moreover, the paper underscores the significance of following up with customers who left unpurchased items in their carts and considering extended payment options.
To optimise transparency, it’s crucial to display clear payment options and logos, and to tailor the journey to different devices and locales. Overall, addressing cart abandonment not only boosts sales and revenue but also fosters customer loyalty and a competitive edge in the evolving e-commerce landscape.
Nick Fisher, general manager, sales and marketing, JCB International (Europe), comments: “Cart abandonment is a pressing challenge that online merchants face as more players emerge. Adopting a proactive approach and leveraging expertise from the right partners can help merchants shift the narrative and transform a challenge into an opportunity.
“While there is no one-size-fits-all solution, understanding the purchasing behaviours of your customers and ensuring the availability of their preferred payment option will put you in a far better position to reduce the number of abandoned carts and increase sales turnover.”