The reason for many companies to have a website is e-commerce, the ability to sell their product or service over the Internet. The benefits have always been clear, maximum customer reach for minimum cost. Most organisations with an e-commerce website will be well aware of their online turnover and profit figures. They will probably be aware of user numbers and customer data such as geography and repeat visits. The data that often goes missed however is the number of shopping baskets that never reach the checkout.
The ratio of completed orders compared to those uncompleted can be surprisingly high. This issue has always existed and to a degree always will. However it is worth reviewing the figures and then considering how more of these potential customers could be converted into paying ones. Data from numerous reports going back to the emergence of e-commerce in the late nineties have shown a consistent trend towards an average of 60% of users abandoning their shopping carts.
Surveys by companies such as DataMonitor and Ernst & Young have found there to be a number of reasons why this happens but the most popular are shipping charges and the purchase process itself. I can remember advising clients 10 years ago to keep checkout forms short but still you come across long forms that require a lot of information to be input. Research by Customer Experience Management found the following reasons for abandoning carts:
High shipping prices (72%)
Comparison shopping or browsing (61%)
Changed mind (56%)
Saving items for later purchase (51%)
Total cost of items is too high (43%)
Checkout process is too long (41%)
Checkout requires too much personal information (35%)
Site requires registration before purchase (34%)
Site is unstable or unreliable (31%)
Checkout process is confusing (27%)
This means that making a few simple changes to the purchase process and/or reducing shipping costs could help to significantly reduce the number of abandoned carts and therefore increase revenue. Consider your site has a conversion rate of 1 order for every 4 abandoned with a turnover of $100,000. Simply by halving the bounce rate you could add $200,000 to your turnover. Looking at the reasons given by users above this could be achieved with some basic usability work. A good investment when you think about it.