Updated on 25th September, 2023

Exploring the world of e-commerce can be an exhilarating journey. As you open your virtual store to eager customers, watch them peruse your offerings, and add items to their carts, a sense of accomplishment washes over you. However, within this excitement, a common challenge emerges- cart abandonment.

This phenomenon can be compared to a sudden loss of interest, leaving you baffled about its root causes. Understanding this issue is vital, especially when scrutinizing data that reveals recent cart abandonments. High abandonment rates can exert substantial financial strain on your business, underscoring the pressing need to bridge this gap in your e-commerce strategy.

What is Cart Abandonment?

Cart abandonment in the context of e-commerce is a term that refers to the frustrating scenario where a potential customer loads their virtual cart with an online store’s products, only to leave the cart abandoned without completing the order.

And the higher the cart abandonment rate is for an online store, the lower the chances of revenue generation. Cart abandonment is not unheard of, but how many e-commerce stores actually take this vital metric seriously?

Cart Abandonment Rate: The Grim Statistics

Figuring out the reasons behind a high abandoned cart rate is crucial. The higher the abandoned cart rate, the lower the sales will be, and conversely, the lower the abandoned cart rate, the higher the revenue generation. Therefore, the primary task for any e-commerce business is to identify factors that may be impacting their sales and implement strategic solutions to reduce the abandoned cart rate.

1. According to the Baymard Institute, the average rate of abandoned carts stands at 70%. This translates to a scenario where out of 10 visitors to an online store, 7 leave their carts behind, leaving only 3 to successfully complete the purchase process.
2. Barilliance reveals an intriguing statistic: the average cart abandonment rate for desktop users hovers at 73.07%. Surprisingly, despite the comfort and convenience that desktops offer for navigating e-commerce stores, customers are still inclined to part ways with their filled carts.
3. Barilliance also analyzed the pattern of the abandoned carts rate among tablet users, and according to them, 80% of tablet users abandon their carts. This means that if 10 people have visited an online store, only 2 people completed their transaction process and purchased something.
4. The most concerning statistic, however, pertains to mobile users. Among them, the cart abandonment rate skyrockets to a striking 85.65%. This number, in contrast to tablet and desktop figures, stands as a significant setback. For businesses that predominantly cater to mobile users, this underscores a substantial revenue loss.

Key Takeaway

Mobile users notably surpass tablet and desktop users in volume. Regrettably, this surge in mobile traffic corresponds to the highest rate of abandoned carts – an alarming 85.65%.

10 Reasons Your Cart Abandonment Rate is High 

Lack of Mobile-Friendly UI

The number of mobile phone users is constantly growing, with over 60% of customers now shopping from their mobile devices. If your website isn’t responsive to different screen sizes, it can look messy on smaller screens, making it hard to navigate and disrupting the smooth shopping experience. Problems like struggling to find products, accessing the shopping cart, or completing the checkout process can frustrate users and lead to abandoned carts.

What to Do:

If you have an e-commerce store and your website is not mobile-optimized, you are losing out on half of your potential customers. 

• Prioritize the implementation of a responsive design that adapts seamlessly to different screen sizes. This ensures that the UI remains user-friendly on all devices.
• Simplify the navigation process for mobile users. Prioritize key elements such as search bars, shopping carts, and menus for easy access. 
• Adding a progress bar that informs customers about the steps they have completed and the next ones they need to follow can help keep them well-informed and less likely to abandon their carts.
• Optimize images and website elements for faster loading on mobile devices. Speed is crucial for retaining users’ attention. Design touch-friendly buttons and forms that are easy to interact with using fingers, reducing friction in completing essential actions.

Added Charges, Elevating Total Cost

When customers begin their shopping journey, they naturally expect transparency and fair pricing. Discovering extra charges at the last moment can be jarring and may even cause abandoned carts. These unexpected costs create a psychological effect known as ‘sticker shock,’ where the perceived value of the product suddenly changes due to an unforeseen price increase.

What to Do:

Transparency is vital in fostering trust between customers and businesses. Unexpected costs can lead to a feeling of deception, eroding the trust customers have in the brand. 

• Display all potential additional charges upfront, even before customers add items to their carts. This approach sets accurate expectations from the beginning.
• During the shopping journey, provide clear information regarding potential extra costs. Implement tooltips or small pop-up messages that explain why these costs exist and how they contribute to the overall value.
• Integrate shipping calculators that allow customers to estimate costs based on their location before they proceed to checkout.
• Consider offering free shipping for orders over a certain amount. Highlighting this threshold can encourage customers to add more items to their carts, offsetting the extra cost.

Unnecessary Account Creation

The checkout process stands as a crucial juncture in the online shopping journey, but a major obstacle that often leads to abandoned carts is the requirement for users to create accounts unnecessarily. Requiring users to fill out extensive forms for account creation elongates the checkout process, testing their patience and making them rethink their purchase decision. Many customers are looking for a quick, one-time transaction. Demanding account creation implies a long-term commitment, deterring users from seeking a swift and hassle-free experience.

At least 24% of customers abandon their carts because they are asked to create an account. 

What to Do:

Think of making the checkout journey as smooth as possible for your customers. The faster the checkout process is, the faster the transaction will be completed. 

• Prioritize a guest checkout option that enables users to complete their purchase without the necessity of creating an account. Razorpay’s Magic Checkout provides a seamless one-time OTP authentication, eliminating the need for account creation. 
• Offer the option to sign up or log in using social media accounts. This not only expedites the process but also eliminates the need to remember additional credentials.
• Provide users with the option to save their cart and come back later to complete the purchase without requiring immediate account creation.
• If account creation is essential, highlight the benefits of account creation, such as personalized recommendations and order history, to encourage users to create accounts willingly.

Slow Delivery of Products 

Shoppers often expect a specific delivery timeline, and when this estimate is exceeded, it creates a sense of disappointment and unease. The absence of an expedited delivery option limits customer control and convenience, especially for those seeking a swift receipt of their purchase. When faced with the prospect of prolonged wait times, customers may explore alternative sellers or platforms that offer quicker shipping options, potentially leading to abandoned carts.

What to Do:

If your online store fails to deliver products as per the expectations of your customers, they have no other choice but to look for alternatives. Even if you have to charge extra for expedited shipping, do so, but do give an option to your customers. 

• Provide accurate delivery windows at the earliest stage of the shopping journey. This aligns expectations and minimizes surprises.
• Introduce expedited delivery choices for customers seeking a faster receipt. Offer tiered shipping services to cater to various timelines, such as standard delivery- 3-5 business days, expedited delivery- 1-2 business days, or same-day delivery- within 5-6 hours. 
• Try to offer incentives, such as discounts or loyalty points, to customers who choose standard shipping, acknowledging their patience. 
• Be transparent about your delivery policies. Better to have a detailed page on this and explain why some items can’t have expedited deliveries while others can.

Concerns Regarding Sharing Credit Card Information

Building a trustworthy brand is a significant challenge for online businesses. The apprehension around sharing credit card information can significantly influence a customer’s decision to proceed with a purchase. Customers worry about the safety of their sensitive financial information, fearing potential data breaches and unauthorized access.

What to Do:

The fear of credit card fraud or unauthorized charges can be a powerful deterrent, prompting customers to rethink their purchases. 

• Clearly communicate and showcase security measures in place to protect customers’ financial data. Highlight SSL encryption, secure payment gateways, and compliance with data protection regulations.
• Display recognized trust badges and security seals prominently during the checkout process. These symbols can instill confidence and ease concerns. Including a trust badge like Razorpay’s can help build confidence among customers that their money is safe and encourage them to complete their purchases.
• Provide easy access to your platform’s privacy policy, detailing how customer data is handled, stored, and protected.
• Make customer support readily available to address concerns related to payment security, assuaging doubts in real time.

Multiple Steps to Complete Purchase

The complexity of multistep checkout processes can have profound effects on a customer’s decision to finalize a purchase. Complicated checkout processes result in 18% of customers abandoning their carts. Lengthy checkout processes with multiple steps increase the cognitive load on customers, leading to decision fatigue and an increased likelihood of cart abandonment. 

What to Do:

Customers value their time, and if the checkout process takes longer than expected, they might opt for a simpler, quicker transaction elsewhere.

• Condense the checkout process onto a single page, allowing customers to view and complete all necessary steps without constant navigation.
• Offer an option to check out as a guest, eliminating the need for account creation and simplifying the process for one-time shoppers. 
• Utilize auto-fill features to pre-populate fields with information like shipping addresses, making the process faster and more convenient.
• Get in touch with checkout providers like Razorpay Magic Checkout to streamline the process, reducing the effort and time it takes for customers to pay for their products.

Return Policy Fails to Meet Expectations

Customers seek assurance that they can return products if they’re dissatisfied or encounter issues. A vague or restrictive return policy triggers concerns and prompts cart abandonment. Return policies marred by hidden fees, restocking charges, or complicated return procedures lead customers to perceive returns as burdensome, driving them to abandon their carts. And a return policy with tight timelines for returns doesn’t cater to customer flexibility.

What to Do:

Returns will happen, and it is advisable to be transparent about one’s return policy. The more precise and honest you will be about your return policy, the more trust you will instill in your customers. 

• Clearly articulate the return policy on the product pages and during the checkout process. This builds trust and helps customers make informed decisions.
• Extend return timeframes to provide customers with ample opportunity to evaluate their purchases and return items if needed.
• Streamline the return process with easy-to-follow instructions, clear contact information, and user-friendly online return request forms.
• Address customer concerns promptly and professionally around returns and refunds. Assure customers that their inquiries and issues will be handled efficiently.

Frequent Crashes and Loading Problems

Repeated crashes and slow loading times frustrate users, making their shopping experience unpleasant and prompting them to abandon their carts in search of smoother alternatives. Crashes and loading issues impede customers from completing their desired actions, such as adding items to the cart or proceeding to checkout, leading to abandonment out of sheer inconvenience. Frustrated customers are more likely to explore other online stores where they can shop without disruptions, diverting their attention and purchases away from the problematic site.

What to Do:

Your website serves as the ambassador of your brand, presenting your image to the world. Therefore, it’s crucial to maintain its seamless operation consistently, devoid of even the slightest glitches.

•  Perform routine website maintenance to identify and resolve potential issues before they escalate into crashes.
• Invest in a reliable and scalable hosting infrastructure that can handle traffic spikes and minimize downtime.
• Ensure the website is fully optimized for mobile devices to prevent loading problems and crashes on different platforms.
• Conduct rigorous user testing to identify and rectify any usability issues that might contribute to crashes or loading problems.

Unavailability of Preferred Payment Option

Customers seek convenience and familiarity. If their preferred payment method is missing, they might opt for a more familiar platform where their choice is supported. The availability of a preferred payment method can sometimes outweigh other considerations, such as price or even the products themselves.

What to Do:

It is always advisable to offer as many payment options as possible to encourage speedy payment. Cash on delivery, for example, is the most preferred method in India, you might want to add it to the payment page as well. 

• Offer a wide range of payment methods to cater to various customer preferences, including credit cards, digital wallets, UPI, and more.
• Analyze customer demographics and preferences to identify the most popular payment methods for your target audience.
• Connect with checkout partners, like Razorpay Magic Checkout, to make the checkout process 5x faster and display all payment methods in a single screen, including COD. 
• Clearly communicate accepted payment methods on the website, ensuring customers are aware of their options before reaching the checkout stage.

Promo or Coupon Codes Unavailable

Incentives like discounts and coupons are attractive to customers. Customers seek value in their purchases. The absence of promotional discounts or coupon codes can lead them to reconsider, perceiving the purchase as less advantageous. This can lead to customers exploring other online stores in search of better deals. 

What to Do:

Make it easier for them to find and add coupons themselves, but be careful not to overdo it, as it could lead to customers constantly expecting discounts.

• Offer strategic promotions, such as seasonal sales, holiday discounts, and limited-time offers, to engage customers and drive purchases.
• Tailor promotions to individual customer preferences based on browsing behavior, purchase history, or loyalty status.
• Create loyalty programs that reward repeat customers with exclusive discounts, early access to promotions, or accumulated points for future discounts.
• Implement abandoned cart recovery strategies that automatically remind customers about their unpurchased items, accompanied by special promo codes to incentivize completion.

Read Also: Return to Origin- Why it Happens, Its Impact, and How to Solve it? 

Bonus Tip: Reduce Cart Abandonment with Razorpay Magic Checkout.

Here’s a quick checklist to remind you about the reasons behind cart abandonment:

✅Lack of mobile-friendly UI

✅Added charges, elevating total cost

✅Unnecessary account creation

✅Slow delivery of products

✅Concerns regarding sharing credit card information

✅Multiple steps to complete purchase 

✅Return policy fails to meet expectations

✅Frequent crashes and loading problems

✅The desired payment option was not available

✅There were no available promo or coupon codes

Cart abandonment is a challenge every e-commerce business faces. Figuring out why it happens can help improve sales and overall success.

To combat cart abandonment effectively and boost your conversion rates, you can consider partnering with Razorpay’s Magic Checkout. This one-click checkout solution offers the following benefits:

• Magic Authentication: Streamline the checkout journey by introducing one-time OTP authentication. This eliminates the necessity for customers to register accounts or input multiple OTPs.

• Seamless UI: Elevate the checkout experience’s speed with pre-filled delivery details and past purchase information, resulting in transactions that are 5X quicker.

• Trust Badge: Enhance customer reassurance through the display of the Razorpay Trusted Business badge throughout the checkout process.

• Display Coupons Seamlessly: Customers can effortlessly apply coupons and discount codes using Magic Checkout, enhancing the likelihood of recurring purchases.

• Versatility in Payments: Seamlessly accommodates a wide array of payment methods, from conventional Cash On Delivery (COD) to an array of digital options. Swift success/error notifications and impeccable uptime are guaranteed. Complying with RBI regulations, we proudly facilitate transactions across 100+ currencies.

• Tailored for Indian Shoppers: Provide an intuitive, user-centric checkout interface attuned to the nuances of Indian consumer preferences, grounded in a mobile-first ethos.
• Endorsed by Many: Capitalize on Razorpay’s established reputation as a checkout partner for numerous Indian enterprises, including names like Fire-Boltt, Amazfit, and VS. Mani & Co. This trust infusion builds a strong foundation of confidence within your customer base.

Embrace Razorpay’s Magic Checkout and witness a surge in customer satisfaction and reduced cart abandonment rate.