According to webstrategiesinc.com, take a look at the following abandon rates
Why Do Customers Abandon the Shopping Cart?
Why are customers abandoning their purchases more than half the time? Some site more comparison-shopping activities. Recent studies found the following reasons (multiple studies cited so the numbers dont add to 100%).
57% didnt want to pay shipping costs
48% felt the cost of the purchase was more than expected
41% simply used the shopping cart for research perhaps to determine shipping costs
27% wanted a discount coupon
24% sought more payment options
22% were unable to find contact information and felt the website was less credible as a result
19% didnt want to wait for the purchase to be shipped and purchased offline instead
15% felt checkout process was too complicated
12% reported a variety of other reasons
The Financial Impact
In a recent article about conversion rates, I mentioned that ecommerce websites convert anywhere between 1-2%. If you are converting at 1.5% for example and you can reduce your cart abandonment rate by 25% (from 50% to 37.5%), your conversion rate increases from 1.5% to nearly 1.9% – a nice improvement. Taking it one step further, if your average sale is $100 and you are spending 10% of revenue on paid search marketing to drive website traffic, you have improved gross margins by 40% – this is meaningful.
Write a one to two-page analysis of what you think organizations can do to reduce their abandon rate? Feel free to leverage an existing site like Amazon.com, BestBuy.com or another eCommerce site.
Be sure to cite your references (required element).