As of February 6, 2025, the average e-commerce cart abandonment rate is about 70%, according to Baymard Institute. This means 70% of online shoppers abandon their carts, and only 30% complete a purchase. This high rate is a major challenge for businesses of all sizes. In our first blog post, we covered the essentials of cart abandonment rate – what it is, why it matters, and industry benchmarks (link). Understanding why shoppers abandon their carts is key to minimizing losses and boosting conversions.
This high rate is a major challenge for businesses of all sizes. Understanding why shoppers abandon their carts is key to minimizing losses and boosting conversions.
This second post in our series explores the most common reasons for cart abandonment.
While some cart abandonment is unavoidable (like window shopping in a physical store), addressing key issues can significantly improve conversion rates for serious buyers.
Table of Contents
10 Reasons for a High Cart Abandonment Rate
Reason 1: Unexpected Costs at Checkout
No online shopper wants surprise costs at the last minute. In fact, hidden costs are the top reason for a high cart abandonment rate, cited by 48% of shoppers, according to one study. Customers are much more willing to pay extra fees if they’re informed about them upfront.
Here are some common unexpected costs that lead to a high cart abandonment rate:
- Shipping Costs: Customers often assume the listed product price is the final price. Shipping fees, especially when applied unexpectedly, can be a major deterrent. While necessary for businesses, these charges should be transparent from the beginning.
- Taxes: Sales tax, VAT, and other taxes can significantly increase the total cost, particularly if they weren’t anticipated or are higher than expected. The complexity of tax calculations across different regions can also add to the confusion.
- Fees: Handling, processing, restocking, or even “small order” fees can appear at checkout. These often feel arbitrary and can easily lead to abandonment.
- International Costs: Import duties, customs fees, and brokerage fees on international orders can be a major surprise. These costs are often poorly disclosed and can substantially increase the final price.
- Payment-Related Fees: While less common, some businesses add fees based on the chosen payment method.
Also Read: Cart Abandonment: The Expert’s Game Plan
Reason 2: Forced Account Creation
The average online shopper’s attention span is just eight seconds. Now, imagine asking a shopper, already navigating a potentially cluttered page, to create an account before completing their purchase. You’re asking them to invest even more of their precious time.
The 1.5 to 3 minutes it takes to create an account might seem short, but in online shopping, it’s an eternity. While account creation offers benefits like order tracking and personalized recommendations, these aren’t always top of mind for first-time buyers. They want to make the purchase now, and account creation feels like an unnecessary obstacle.
A significant 26% of shoppers abandon their carts because of mandatory account creation. That’s more than one in four potential customers lost simply because of this extra step.
Reason 3: Lack of Trust
A lack of trust is a major contributor to a high cart abandonment rate, especially for newer or lesser-known online stores. With so many choices online, consumers hesitate to risk an unfamiliar site when established retailers offer similar products. Online scams and data breaches have made shoppers understandably cautious, particularly on first visits. This wariness is amplified by a lack of clear trust signals.
Conversely, poor website design, missing contact details or security indicators (like SSL certificates), and a lack of social proof (like reviews) raise red flags. Unclear policies on returns, shipping, or privacy further erode confidence.
For new businesses, the challenge is often simply a lack of brand recognition. Customers naturally gravitate toward familiar names. These factors, especially the absence of visible trust signals, create uncertainty, leading potential buyers to abandon their carts for more established and trustworthy alternatives. The perceived risk outweighs the potential reward.
Reason 4: Slow or Limited Delivery Options
Slow delivery contributes significantly to a high cart abandonment rate, accounting for 23% of lost sales. E-commerce giants like Amazon have conditioned consumers to expect fast, flexible shipping. Their same-day, next-day, and standard delivery options cater to various needs, offering convenience and speed that many D2C brands struggle to match. This speed advantage is a major draw, especially for time-sensitive purchases.
While D2C brands often excel in product quality and brand storytelling, they frequently fall short in delivery logistics. Customers used to the instant gratification of platforms like Amazon may find extended shipping times unacceptable. This disparity can be a deciding factor, pushing shoppers to abandon their carts and choose the faster, more reliable delivery of larger platforms, even if it means sacrificing a more personalized brand connection.
Reason 5: Complicated Checkout Process
A complicated checkout process is a major contributor to a high cart abandonment rate, accounting for 22% of lost sales. While a transaction requires contact, shipping, and payment details, many online stores overcomplicate this essential process. Excessive form fields, mandatory account creation (already discussed), and unclear progress indicators can quickly frustrate shoppers.
Forcing customers to navigate multiple pages, repeatedly enter information, or decipher confusing error messages creates friction and disrupts the purchase flow. A lengthy checkout can feel overwhelming, especially on mobile devices. Requiring unnecessary information, like date of birth or gender, can also raise privacy concerns and slow things down. The more steps involved, the greater the chance a customer will get distracted, change their mind, or give up.
Quick solution: If a complicated checkout is driving your high cart abandonment rate, streamline the process with a solution like Magic Checkout. This type of tool can prefill contact, address, and payment information, making checkout significantly faster.
Reason 6: Unclear or Inadequate Return Policy
An unclear or inadequate return policy contributes significantly to a high cart abandonment rate, accounting for 18% of lost sales. Returns are common in online retail; damaged goods, incorrect deliveries, and changes of mind are unavoidable. Customers understand this, but they need reassurance that returns will be handled efficiently and smoothly. A vague or hard-to-find return policy generates anxiety and distrust. Shoppers want to know their options before purchasing, especially for expensive items.
A complex return process, with short timeframes, unclear guidelines, or substantial restocking fees, can discourage potential buyers. The absence of a well-defined return policy can also suggest a lack of faith in the product. For high-value purchases, this concern is amplified. Customers often look for purchase protection or guarantees, highlighting the crucial role of a strong, transparent return policy in building trust and driving sales.
Reason 7: Website Issues
Website issues significantly contribute to a high cart abandonment rate. Technical problems like slow loading speeds, website crashes, and mobile incompatibility frustrate users and drive them away. A website that doesn’t function seamlessly on mobile is particularly vulnerable. Usability issues, such as complicated navigation, cluttered layouts, and confusing checkout processes, further deter purchases. If customers can’t easily find products, navigate the site, or complete checkout, they’ll likely abandon their carts.
Poor product presentation, including low-quality images or incomplete descriptions, can also make shoppers hesitant. Design and content matter too. An unprofessional website design or a lack of trust signals, like security badges or clear return policies, raises red flags. Even excessive pop-ups or a lack of easily accessible customer support can push customers away. Essentially, any friction in the user experience, from technical glitches to poor design, can lead to a high cart abandonment rate.
Reason 8: Lack of multiple payment methods
The lack of multiple payment methods contributes substantially to a high cart abandonment rate, with 13% of customers abandoning purchases due to limited payment options. Customers have diverse payment preferences, influenced by convenience, security, financial situation, and even cultural norms. Some prioritize the ease of UPI, while others prefer the security of established credit card networks. For some, BNPL options offer a crucial budgeting tool, while others rely on digital wallets for quick transactions. Offering a wide range of payment methods also builds trust and signals that the business is adaptable and caters to different customer needs.
Conversely, limited options can raise concerns about the legitimacy or modernity of the online store. With the increasing globalization of e-commerce, businesses often cater to customers from diverse regions and backgrounds. Offering multiple payment methods, including international options, is crucial for accommodating this diverse customer base. Modern payment methods like BNPL have become increasingly popular, offering greater financial flexibility. They allow shoppers to spread out payments, making larger purchases more manageable. Not offering such options can deter customers who rely on these tools for budgeting.
Reason 9: Difficulty Finding or Using Coupons/Discounts
Customers love coupons and discounts. The allure of saving money is a powerful motivator, yet 8% of customers abandon their carts when they can’t find relevant deals. Clearly promoting and displaying available offers is crucial. If coupons are hard to find, expired, or have confusing restrictions, shoppers may leave frustrated. The absence of visible discounts can also create the perception of lower value. Clearly showcasing coupons and promotional offers encourages conversions and reduces cart abandonment rate.
Reason 10: Saving for Later
Sometimes, customers add items to their cart with no immediate intention of buying. They might be saving items for later, creating a wishlist, or simply “window shopping.” While this contributes to a high cart abandonment rate, it also reveals valuable insights into customer behavior. These abandoned carts aren’t necessarily lost sales; they represent a form of pre-purchase consideration. Customers use the cart as a way to curate items of interest, effectively creating a personalized collection of products they’re considering.
This behavior can be driven by various factors. They might be researching a purchase, comparing prices across different retailers, or waiting for a specific event like a birthday or holiday. Perhaps they’re unsure about sizing, color, or other product details and plan to revisit the cart later when they have more information. For some, the cart serves as a temporary holding place while they finalize their budget or wait for payday.
Essentially, the cart becomes a bookmark, a reminder of items they intend to purchase eventually. This “saving for later” phenomenon underscores the importance of understanding the customer journey and recognizing that not every cart abandonment signifies a lost sale. It often indicates a delayed purchase, a customer who is still in the decision-making process.
Key Takeaways and Next Steps
Now that we’ve identified key reasons behind a high cart abandonment rate, the next step is implementing solutions. In our next article, we’ll cover effective strategies and tools to help you lower your cart abandonment rate. One of the most effective ways to optimize the checkout flow and enhance conversion rates is by using Magic Checkout—a seamless, AI-powered checkout solution designed to eliminate friction and improve order completion rates.
Stay tuned for actionable insights on:
✔ Optimizing the checkout flow ✔ Improving payment experiences ✔ Leveraging retargeting strategies ✔ Enhancing customer trust and transparency ✔ Using automation tools for cart recovery
📌 Watch this space for our in-depth guide coming soon!
