The typical shopping cart abandonment rate for online retailers varies between 60% and 80%, with an average of 67.91%.
And with nearly 70% of people failing to complete their purchase, you’re missing out on valuable revenue.
There are many reasons for abandonment
One is the rise in window shopping and price comparison shopping. A recent report by Forrester explained that “shopping is now a lifestyle experience, it’s all about the experiential engagement” – and that means more people are browsing with no intention of actually buying from you. No matter how sophisticated your website or slick your processes, you’ll have percentage of customers who don’t complete a purchase for these reasons.
However, there are factors that cause previously engaged consumers to abandon their carts, such as:
• Long, complicated checkout processes (“I don’t have time for this”)
• Questionable security (“I don’t trust the site with my credit card information”)
• Lack of payment options (“Give me more choice”)
• Issues paying (“My credit card was declined”)
Payment options influence online shopping behavior and affect cart abandonment
Customer preferences are changing and moving away from traditional debit and credit card transactions – they no longer want to type in long numbers or go through the verification processes.
When customers have more payment options that help them check out faster, they buy more frequently and have a higher average order value, which leads to more sales for you.
5 mobile payment options help boost conversion rates
We recently exhibited at IRX, the Internet Retailing Expo. It was a great opportunity to speak to retailers about their pain points and perceptions of the payment market. Interestingly, there were many misconceptions around mobile payments – many retailers didn’t understand the available options.
- Mobile wallet – payment linked to a bank account, where customers ‘tap and go’ for purchases up to £30.
- Mobile as the point of sale – mainly used by smaller companies/retailers, where customers use their mobile as a payment device.
- Mobile payment platform – like PayPal and Stripe, where customers pay a merchant online and make payments to friends
- Direct carrier billing – customers just provide their mobile number and the charge appears on their phone bill (this is Tola’s proposition)
- Closed loop payments – proprietary mobile payment systems, for example the Starbucks mobile app