Have you ever selected a product from an online retailer, only to decide against purchasing at the last possible second? If you have, it’s more than likely that shipping costs influenced your decision. A recent report indicates high shipping costs are the primary reason why online consumers abandon their shopping carts.
Sixty-five percent of online shoppers abandon their carts on average, according to Invesp. Of those, 44 percent cite high shipping costs as their chief motivation for abandoning prior to purchase. Other drivers include lack of purchase readiness (41 percent), high product prices (25 percent), and a preference to save products for later consideration (24 percent). Additional issues include not clearly mentioning shipping costs, no guest checkout option, slow website, and spam with offers.
The report further underscores seven elements critical to the shopper’s checkout process: fears, uncertainty, and doubts; incentives; trust indicators; visitor persona; buying stage; complexity of purchase; and engagement. Some companies are reformatting “click” routines to simplify the shopping experience and reduce abandonment rates. Others have long offered free shipping for purchases over a certain dollar amount.
In the meantime, the Invesp study offers good insight to the aspiring retailer hoping to make a dent in the world of e-commerce.