Recovering Lost Sales through an Automated Shopping Cart Abandonment Strategy
By Megan Ouellet, Director of Marketing for Listrak
January 20, 2010
Convenience no longer trumps price for online shoppers. Shoppers, in search of bargains, are taking the time to compare prices, shipping fees, return policies, and product reviews prior to making a purchase – and there is no easier way to do that than to add items to their online shopping carts. A study by PayPal and comScore found 45% of US online shoppers had abandoned shopping carts multiple times1. Another study by the e-tailing group showed 64% of US online retailers experienced cart abandonment rates of over 20% in 2009, with nearly one-third of them reporting rates over 50%2.
Even more alarmingly, 22% admitted that they didn’t know what their abandonment rate is.
Consumers abandon etail shopping carts for a number of reasons. High shipping charge, slow delivery schedule, lack of customer support, inconvenient time to purchase, and feelings of insecurity are some of the more common reasons people don’t complete their online purchases. Many times the shoppers simply found it too easy to walk away from an impulse purchase without a salesperson there to encourage the sale. But, whatever the reason, the results are the same. Retailers are losing significant amounts of revenue due to abandoned shopping carts.
It is possible, however, to recapture a major portion of those sales. There are a number of tweaks you can make to your website to discourage abandoned carts – PayPal published a great article entitled “10 Tips to Reduce Cart Abandonment3” and Practical eCommerce offers tips in its article “Seven Ways to Reduce Shopping Cart Abandonment4.” However, this white paper focuses on how you can use email remarketing campaigns to re-engage shoppers and convert them to buyers. You can find out how much revenue you can recoup through a simple reachback campaign with our online shopping cart abandonment calculator.