Shopping cart abandonment is an ever-growing problem for e-commerce businesses. According to The Omnichannel reports, as much as 94% of consumers abandoned their shopping carts since June 2020. What this means is that more and more people are window shopping on e-commerce sites. But why do people spend so much time curating wishlists, adding products to the cart and abandoning them last moment? And how do e-commerce giants like Amazon prevent shopping cart abandonment rates? Well, the answer lies in overpromising and overdelivering.
Now, when we say overpromising and overdelivering, we mean it in a competitive way. Most e-commerce businesses fail to tend to the customer’s volatile needs. Let’s inspect Amazon’s functioning. The reason people are driven towards the platform is that it offers delivery fast and free (affordable, if not free). We can say that the primary cause of shopping cart abandonment is logistics problems.
Is it ONLY a Logistics Problem?
If you think about it… yes, it is. The reason why most consumers abandon their carts is high shipping prices, or long delivery time. Note that here, we are talking about the consumers who browse through the e-commerce site with an intention to actually shop, and not window shop.
During the time of checkout, high shipping charges can lay off a consumer and shift them to another site. Reports show that around 45% of consumers abandon their carts because of this reason. The next reason why consumers do so is long delivery time. In the age of Amazon Prime, there’s no reason why consumers would expect delivery to take more than a few business days. The speed of the delivery matters in preventing shopping cart abandonment issues.
What is the Solution for Shopping Cart Abandonment?
The fix for shopping cart abandonment issues, in short, is fixing the logistics services of the business. Your products and services need to be in proximity to your customers. The only way to do this is to physically take your warehousing operations closer to your customers. Setting up on-demand warehouses in the location where you get the most sales from can improve your business even better. On-demand warehousing is a brilliant way to deal with the flexibilities of the market. Providers like Anyspaze tend to on-demand warehousing needs for e-commerce businesses and connect them to the relevant marketplaces.
By setting up flexible warehousing spaces in multiple locations, you will be able to save the expense on setting up fixed warehouses. You will also be able to test the markets. But this is not enough. Your existing logistics network must also be optimized. Some other aspects that an e-commerce business needs to prioritize include the use of data to track consumer preference, and personalise the shopping experience for customers. Rewards, etc. can also help make the consumer stick to your e-commerce site. Next, technology can also help immensely in improving your logistics operations. This can include devices, software that help with efficient warehousing, etc. Do whatever is needed to streamline your logistics operations and your overall sales would also improve.
Is that All I Need to Do To Prevent Shopping Cart Abandonment?
Improving logistics is pretty much all you need to do to improve your shopping cart abandonment rates. Apart from this, you can try and offer competitive rates on your delivery or products or service. Be innovative about it and do not hesitate to test and try. Remember that fixing logistics doesn’t have to be an economically draining affair. With services like on-demand warehousing, you can comfortably shift from a rigid business model to a flexible one that fulfills consumer demands better.