SHOPPING CART ABANDONMENT: Merchants now leave $4.6 trillion on the table, and mobile is making the problem worse
BI Intelligence
Lots of consumers click on an item they're interested in online, transfer it to their shopping cart, but in the next moment, get cold feet and close the tab, a common consumer behavior called shopping cart abandonment.
It's a growing problem for e-commerce merchants, who we estimate will lose $4.6 trillion worth of merchandise to abandoned carts in 2016, up from $4.2 trillion in 2013.
Why are merchants losing even more now? Mobile is exacerbating the issue as it rises in prominence as a browsing and purchasing device, because it's easy to search for items on mobile, but entering all of the form fields at the checkout stage is still difficult. Mobile phones represented 46% of global e-commerce traffic in Q2 2016 but just 27% of purchases, according to Criteo, indicating that conversion rates are still low on mobile.
Luckily, a huge chunk of the sales within abandoned shopping carts is recoverable. We estimate $2.75 trillion of abandoned merchandise is recoverable, presenting merchants with a huge opportunity to capture additional sales. To recoup these sales, merchants in part need to examine email retargeting strategies, app development, and the prioritization of establishing repeat customers. Merchants that effectively manage their abandoned shopping carts can bolster sales growth and gain a competitive edge in the e-commerce market.
A new report from BI Intelligence offers updates to our previous report on shopping cart abandonment, including new estimates, trends, and how mobile phones, and even Amazon, are driving up the issue and importance of tackling abandonment.
Here are some of the key takeaways:
- Shopping cart abandonment is a multi-trillion dollar headache for online merchants, but it's also a huge opportunity. Approximately $4.6 trillion worth of merchandise will be left unpurchased in online shopping carts this year, and about 60% of that is potentially recoverable by savvy online retailers, according to BI Intelligence estimates. Recoverable sales equate to an estimated $2.75 trillion.
- Cart abandonment is increasing and will continue to do so as more consumers shift to mobile shopping. It's grown increasingly easy to browse for items on mobile, but entering all of the form fields at the checkout stage is still difficult. This lowers conversions and pushes the overall abandonment rate higher. We estimate that the global abandonment rate will rise to 73.4% this year, up from about 71.1% in 2014.
- There are multiple causes of abandonment. Unexpected shipping costs, having to create an account, poor checkout experiences, and lengthy delivery times can all contribute to a customer's decision to drop off the purchase path. As a result, retailers should invest in shipping options, checkout pages, and other tools to boost conversions.
In full, the report:
- Examines historical shopping cart abandonment rates and the factors contributing to its rise.
- Lists and explains the causes of shopping cart abandonment.
- Determines the steps needed to minimize abandonment and recover lost sales.
- Explores omni-channel shopping's influence on abandonment behaviors.
Interested in getting the full report? Here are two ways to access it:
- Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
- Purchase & download the full report from our research store. >> Purchase & Download Now