We’ve all done it before – loaded up our online shopping carts with products we love, only to abandon minutes later. The question is why?
Some of it has to do with the online shopping experience itself. Simply put, it’s more fun to shop than it is to pay. Still, driving conversion is big business in the fast lane of retail commerce. According to Cooper Smith of businessinsider.com: “Approximately $4 trillion worth of merchandise will be abandoned in online shopping carts this year.”
In a recent article, Smith revealed findings from a June 2014 study by UPS and comScore. One of the key takeaways? Lower shipping costs and faster delivery times lead to higher conversion rates. (Yep, no surprise there.)
Other causes for abandonment?
- High on the list was a poor mobile shopping experience. Consumers expect to enjoy a frictionless journey via any connected device. Fail to deliver, and you’ll lose that sale.
- Information security and privacy were also rated as top concerns for wary online shoppers. Companies that enact stringent policies, like Kibo – which is PCI compliant – give shoppers the peace of mind they need to purchase online.
- Lastly, respondents increasingly expect a convenient, no-questions-asked return policy. Enabling in-store returns of online purchases – which Kibo’s distributed order management supports –makes this easy.
In sum, offering competitive pricing, policies and promotions, such as free shipping, have never been more critical than in today’s click-happy retail landscape where your top competitor is only a bookmark away.
The chart below highlights some of the key findings from the UPS/comScore study.
