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  • Jozef Gajdoš

Is Your Business Struggling With These 5 Checkout Abandonment Reasons? Here’s How to Avoid Them.


Just inches away from a sale, and then... they’re gone. Sound familiar? You’re not alone in this, as more than 70% of carts are abandoned during online shopping. Discover the top five reasons that turn potential sales into checkout abandonment and the strategies to overcome them, ensuring a smoother customer journey.


A 2023 study by Baymard revealed that 47% of shoppers abandon their cart during checkout because of high extra costs for shipping, taxes, and fees. Other reasons include account creation (25%), too slow delivery (24%), lack of trust with credit card information (19%), and a long or complicated checkout process (18%). Let’s break them down.

1. Too high extra costs

Customers often add products to their cart based on the listed price. When they proceed to checkout and suddenly find added costs (like taxes or shipping fees), it can cause sticker shock, making them reconsider the purchase.

Solutions

  • Transparency: If possible, offer a shipping calculator on the cart page, so users can estimate the total before hitting checkout. Alternatively, consider running promotions like “free shipping days”.

  • Product bundles: Offer product bundles that allow customers to buy multiple complementary items together at a discounted rate. This can help in offsetting the perception of high shipping or extra costs.

  • Loyalty programs: Introduce loyalty points or cashback for members. Over time, these points can be redeemed to offset extra costs.

  • Volume discounts: Provide discounts for purchasing products in larger quantities or for orders over a certain value, effectively reducing the impact of extra costs.

2. Mandatory account creation

While having users create accounts can be beneficial to your businesses, as you gather customer data and foster loyalty, mandating it can act as a barrier. Many shoppers, especially first-timers, see it as a time-consuming task or a commitment they’re not ready for.

Solutions

  • Guest checkout: Offer a guest checkout option, making account creation optional.

  • Social media login: Alternatively, you can allow users to quickly log in using their social media credentials. This is also a way of significantly reducing the time and effort required.

  • Express checkout: Implement an express checkout feature using platforms like Apple Pay, Google Pay, or PayPal, where users can securely pay with their accounts without needing to create a separate account on your site.

  • Post-purchase account creation: Instead of asking users to create an account at the start, prompt them at the end of their purchase. Highlight the benefits, like easier returns or tracking. You can also motivate them by offering a discount on the next purchase.

A woman online shopping abandoning checkout last-minute.

Include a guest checkout option to make the purchase completion easier.

3. Slow delivery

In an age of instant gratification, where the biggest eCommerce players offer same-day or two-day deliveries, customers have come to expect swift delivery times. As the 2022 data shows, 41% of global buyers hoped to receive their purchase within one day. Slow delivery can be a deal-breaker, especially for time-sensitive purchases.

Solutions

  • Local warehousing: Consider storing best-selling items in local warehouses or fulfillment centers to expedite shipping.

  • Alternative delivery methods: Consider partnering with third-party fulfillment services. Offer local pickup points or collaboration with retail partners for in-store pickups.

  • Expedited shipping options: For those willing to pay more for faster delivery, ensure you have express shipping options available.

  • Transparent communication: If a product will take time to ship, clearly communicate the reason, e. g. it's custom-made or sourced from a particular location, to set proper expectations.

4. Lack of trust with credit card information

Customers are becoming increasingly aware of cyber threats, data breaches, and fraudulent activities. When a customer hesitates to provide their credit card information, it’s often due to concerns about how securely this sensitive data will be stored and processed.

Solutions

  • Recognized security measures: Adopt and maintain up-to-date SSL certificates that ensure data encryption between the user’s browser and your server. Display security badges like Norton, McAfee, and TrustE prominently on your site, especially during the checkout process. They indicate that your site undergoes regular security audits.

  • Trusted payment gateways: Integrating well-known payment gateways like Stripe, PayPal, or Square can alleviate concerns over security, since these platforms specialize in securely handling payment information.

  • Tokenization: Instead of storing credit card details directly on your servers, use tokenization. This process replaces sensitive data with a unique token. Even if a breach occurs, the tokens cannot be reverse-engineered to retrieve the original credit card details.

  • Data minimization: Only collect data essential for the transaction or service. The less personal information you store, the less risk there is of exposing it to a potential breach.

Online shopping resulting in shopping cart abandonment.

Using widely-recognized payment gateways and tokenization can help strengthen trust.

5. Too long or complicated checkout process

A checkout process that requires too many steps or repeatedly asks for the same information can frustrate users, leading to cart abandonment.

Solutions

  • Fewer pages or steps: Condense the checkout process by merging related steps. For instance, rather than having separate pages for shipping information and billing details, combine them into a single page with a clear layout. Use tabs or accordion-style collapsible sections to make information more digestible without making the page feel cluttered.

  • Auto-filling fields: Implement smart systems that remember returning customers. Using cookies or account data, pre-populate fields like shipping addresses, phone numbers, or payment preferences for users who have shopped with you before.

  • Necessary form fields only: Critically evaluate each field in your checkout form. Is it absolutely necessary? From my experience, you can omit the cardholder name. Moreover, if you never reach out to customers via phone, consider eliminating the “Phone Number” field.

To sum it up

In today’s competitive e-commerce landscape, understanding and addressing the barriers to a seamless checkout experience is pivotal. You can mitigate cart abandonment by embracing transparency in pricing, enhancing user flexibility, expediting deliveries, fortifying trust in transactions, and simplifying the checkout process. Forward-thinking strategies will not only improve user experience but also foster brand loyalty, driving sustained growth in the ever-evolving world of e-commerce.


At Axelgate, we focus on creating payment solutions that minimize the effort of your customers and maximize the success of your checkout processes. Get in touch to learn more.

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