India is excited about the 2022 festive season sales. After the long hiatus due to Covid-19, the country is finally free to celebrate this festive season with zeal, enthusiasm, and minimum restrictions.
Online sales during the festive season are expected to grow by 28%. As per a report shared by Redseer Strategy Consultants, India has clocked in a sale of $3.5 Bn or Rs. 24.5k Cr during the first week of this year’s festive sales.
Since the festive season boosts sales, an increase in the cart abandonment rate or higher drop-offs can be the biggest nightmare for online stores for obvious reasons.
If you want to fight the high cart abandonment rate this festive season, this guide will help you figure out the impact of cart abandonment, why customers abandon their carts, and the solutions you can implement to reduce the cart abandonment rate.
Customer Buying Journey
Before we dwell deep into why customers abandon their carts and what can be done to reduce the cart abandonment rate, let us first understand the touchpoints of a customer buying journey.
Each touchpoint a customer goes through is important and should be taken care of to drive sales. One needs to understand how a customer reacts to these touchpoints and work on optimizing them.
Impact of Cart Abandonment
No matter your business, this guide doesn’t need to tell you that if the cart abandonment rate is high for your brand during the festive season, you will miss out on a lot of business revenue. And the truth is the average cart abandonment rate is 70%.
Reasons for Cart Abandonment This Festive Season
Cart Abandonment Solutions to Try This Festive Season
1. Offer Guest Checkout
At least 24% of customers abandon their carts because they are asked to create an account! Customers shop from various online stores and create multiple accounts. Rather than asking them to create an account every time, it would be better to have a guest checkout option.
If an online store wants to collect contact information, such as email address and phone number, that can be collected once the order transaction is complete. Let customers complete their purchases without any complications.
2. Offer One-Click Checkout
These days, customers demand a simplified checkout experience. 18% of customers abandon their carts when they find the checkout process complicated. Hence, by minimising the steps to complete the checkout process, an online store will increase its chances of customers shopping from them.
One can take advantage of checkout solutions, such as Razorpay Magic Checkout to help them with the checkout process to minimise the steps for their customers. The idea is to make the customers invest less effort and time to pay for the items they like. The result! 5x faster, one-click checkout that can minimise drop-offs.
3. Provide Full Pricing Details
It is always a good idea to tell customers the total cost upfront rather than making them learn about it on the payment page. The total cost should include tax, shipping charges, etc. What can be done is provide an option for customers to add their zip code on the product detail page. Once a customer adds their zip code, the store can share the total cost so that customers can be aware of how much they are paying and not feel surprised at the payment page.
4. Partner With a Trusted Checkout Company
The internet is overloaded with a galore of online stores. The problem is customers don’t know whether an online store is trustworthy or not.
Razorpay Magic Checkout is a trusted checkout partner. There is a Razorpay Trusted Business badge program that select brands can win based on prolonged trusted behaviour. This further helps in enhancing brand image, particularly if they are new.
5. Offer a Clear Return Policy
Although every eCommerce and D2C brand tries its best to provide customers with optimum-quality products, things can happen. By offering a robust return policy, online stores can further strengthen their brand image.
Think of creating a return policy page that explains everything properly. It is also a good idea to add a link to the return policy page on the payment page so that customers can go through it before buying.
6. Offer Multiple Payment Options, Including COD
Customers want the freedom to pay via the payment method they feel the most comfortable with. Therefore, think of offering as many payment options as possible. Customers typically prefer the cash-on-delivery option when it comes to new stores, primarily because of trust issues.
Now, everyone knows that the return to origin rate is the highest on cash on delivery orders. But here’s how Razorpay Magic Checkout can help. Magic Checkout’s proprietary RTO Intelligence algorithm can analyse each order for eCommerce and D2C brands and disable the COD option for high-risk orders with a high propensity to RTO based on customers’ historic RTO patterns, address accuracy and hundreds of other parameters.
So, if any eCommerce business is worried about the COD payment method, they don’t need to worry about it anymore with the Razorpay Magic Checkout RTO intelligence algorithm.
7. Be Cautious About Cross-Selling
There will be many products that an eCommerce business or D2C brand would like to market to prospective customers who are already interested in similar products. But be very cautious about cross-selling.
Never be too pushy. The right place to upsell a product is the product page. This is where one can show off different versions of the same product. Another good place to upsell is when a customer adds an item to their cart but hasn’t checked out yet. Too much cross-selling can make even interested customers abandon their carts.
8. Offer Discount codes
Customers these days are provided with coupon/discount codes on almost every online store. And these coupon/discount codes are quite beneficial for them. Since incentives play a significant role in letting customers save money, one can think of making it easier for them to find coupons and add them themselves.
Also, coupons should be easy to find. Partner with a checkout partner, such as Razorpay Magic Checkout, that makes finding coupons easy. The idea here is not to leave a single opportunity to disappoint customers.
9. Prioritise Mobile-Friendly Experience
Make mobile-optimised and adaptive websites a priority. It is always a good idea to design a website that is accessible via mobile phones and desktops/laptops. Just like a customer will not want to visit a physical store that doesn’t label each category of products properly, online customers don’t want to zoom in and out of the screen just to be able to see the whole content of the website.
Any modern eCommerce store can be mobile-optimised, and it would be better to make the layout mobile-friendly when designing an online store.
10. Recommend Relevant Products
Some customers will visit an eCommerce store or a D2C brand just to see what they offer. They will take time to decide whether to buy from the store or not. And the truth is these customers will even add products to their carts only to leave them abandoned.
Although not much can be done for casual website browsers, every new visitor to an eCommerce store is first a casual browser. So, the right thing to do would be to keep the online store well-prepared.
By keeping the website tidy, offering a fast and hassle-free checkout, displaying high-quality product images, explaining the products properly, having a robust return policy page, and taking every necessary step, the chances of converting these casual browsers into buying customers will increase.
No one can get rid of cart abandonment 100%. There will be customers who will abandon their carts even though the online store is pitch-perfect. But there are a few steps eCommerce businesses and D2C brands can take to minimise their cart abandonment rate.
A high cart abandonment rate can massively impact the growth of an eCommerce business or D2C brand. To fight the high cart abandonment rate this festive season, partner with a checkout provider who will take care of it. Offer customers with a checkout experience that will make them repeat buyers.
Razorpay Magic Checkout focuses on providing eCommerce businesses and D2C brands with a 5x faster, one-click checkout that can identify frauds efficiently, let them offer COD as a payment method confidently, help in improving order conversion rate, and support businesses with their growth.
Still Unsure About Razorpay Magic Checkout?
Let this festive season bring joy, prosperity and, most importantly, an abundance of business growth.