If you ignored the customers who abandoned their shopping carts on your ecommerce site, you would lose some severe revenue.
The average cart abandonment rate globally is 69%. That is a startling number, considering that most people arrive at the checkout stage to buy.
So why does someone abandon the checkout process midway? And what can you, as an ecommerce business, do to prevent this?
In this article, we’ll go through the ecommerce checkout process. We will also see why customers abandon checkout and how you can create the perfect checkout flow to prevent it.
The Ideal Ecommerce Checkout Process: 7 Steps
Although the checkout process may seem pretty straightforward, you would be surprised how many businesses fail to create a seamless customer experience.
In this section, we’ll go through the steps of a normal ecommerce checkout process.
1. Initiate checkout
So, your potential customers have landed on your ecommerce website through an email you have sent them.
After browsing your site, they finally choose what they want to buy. Checkout begins when your customer hits the “Add to Cart” button.
This button should ideally trigger your checkout flow. The selected items are added temporarily to their online shopping cart and can be accessed until they finish the checkout process or log out of your site.
Users are then directed to the checkout page and must follow the steps from there. This is how checkout is initiated.
2. (Optional) Login or signup
Once your customer initiates checkout, you can prompt him to log in or sign up for your website. This step is optional.
The signup form can have as little as 2-3 fields for the user’s name, email address, and password.
It is not always advantageous to have a forceful signup page during checkout, even though it may seem like this is the best way to capture the user’s details for further correspondence. We will discuss why a little later in this article.
Once the user has signed up or logged in, he moves on to the next step.
3. Billing information
The billing address field is for the address related to the billing method. For instance, the billing address may be related to the credit card a customer uses to purchase an item.
Many companies use an address verification system to verify that the billing address matches the credit card holder’s address. Although this is only required when using a card to pay, it is advisable to keep this field.
4. Shipping information
The shipping address is where the customer wants the delivery to be made. It is mostly the same as the billing address, but sometimes, customers would like the package delivered to a different address.
This could be because the package is a gift to someone else, the customer needs the delivery to an office address, or some other reason.
You could simplify this by including a small checkbox to indicate whether the billing and shipping addresses are the same. If the customer checks this box, he must wait to fill in the second address column again.
5. Shipping method
This section shows customers all possible methods that can be employed to ship the package to them.
Shipping options that are both fast and affordable can help avoid cart abandonment. Options such as 2-day, same-day, international, or free shipping can entice your customers to continue purchasing.
Be sure to calculate your shipping costs, the dimensional weight of the package, and shipping and handling charges while offering reduced shipping costs for your customers. This will help you balance the fees you must bear while shipping your customers’ packages.
6. Preview order
A preview order page helps your customer review what items he has ordered. It is helpful to add options to edit or delete individual items to modify the cart easily.
If there was a mistake in the order, it could be unpleasant to delete the entire cart and start over again. Make this step user-friendly and straightforward.
This page could also be where the customers rethink their orders and decide not to proceed. Make sure that the call to action is evident at the end of the page so that customers can quickly move on to the next checkout process step.
7. Payment confirmation
This is the last step in the process and helps your customers confirm their payment details. It is essential to make this page secure. Customers may only be completely confident in parting with their credit card or debit card details if your website looks trustworthy.
Use trust signals such as a secure payment gateway. Display the SSL certificate on your page so customers know the secure transaction.
You can also add a cart summary to show customers what items they are purchasing and how much the total bill amounts to, including taxes and shipping costs.
This helps make the whole checkout flow smooth and reduces cart abandonment.
What Is Checkout Cart Abandonment and Why Does It Matter?
In 2018, ecommerce sales around the world reached $653 billion. When you run an ecommerce business, it only makes sense that you pay close attention to every step of the buyer’s journey.
Checkout is the most crucial phase of this journey, as the leads who end up here have almost purchased from you. To have hot and hard-earned leads exit at this stage would be no less than tragic.
Four of five businesses in the U.S. already use at least one SaaS application. There are many tools you can use to optimize the checkout process.
For instance, you can set up email sequences designed to bring back customers who have abandoned their carts. Ecommerce businesses lose trillions due to cart abandonment. An automated email sequence reminding customers to complete their purchases can help reduce cart abandonment.
Use a sales automation tool to ensure leads don’t slip through the cracks, and if they do, you know when to follow up.
6 Reasons Customers Abandon Checkout
You understand how much a cart abandonment can cost your business. Now, how do you reduce those numbers and increase your revenue?
It’s time to get down to the root cause(s) of why customers abandon the checkout process. Here are some of the reasons:
1. Unexpected charges
High additional costs and hidden costs are among the top five reasons for checkout abandonment (55% and 21%, respectively).
This speaks a lot about how potential customers feel about unexpected costs during the checkout process.
These additional costs could be shipping costs, taxes, or other hidden charges that appear at the checkout stage. It would be better to show all possible costs on the cart page before the customer adds all the payment and shipping details. Whether you use an in-house inventory manager or an outsourced third-party logistics company like Shipbob, they must be strongly aligned with your website’s shipping software.
2. Forced account creation or registration
The second most common reason for checkout abandonment is forced account creation (34%). Usually, you would think an account creation process during checkout would help increase your subscriber base, but this is far from the truth.
When the checkout process is not smooth, visitors are put off by the extra steps required and may most likely wander off your site without purchasing.
Remember that online shopping is meant to be fast and convenient, so avoid slowing down the experience for your shoppers.
3. Long, complex checkout process
A complicated checkout process accounts for 26% of customers abandoning their online shopping carts.
A long and tedious checkout process puts customers off. They want to be in and out of your site without hassle.
Take care to keep your checkout process as simple as possible. Remove any unwanted steps or clicks. Keep your pages clean and without distractions.
4. Website crashes and other errors
When a website crashes or shows an error, it can prevent people from purchasing even when they are ready.
This is one of the most critical issues that leads to checkout abandonment. Although most customers will attempt to complete the checkout process again later, not everyone will do so.
Website errors also lead to distrust in the company website. Try to ensure no errors are occurring during the checkout process. Even if your website is down, find ways to monitor and rectify it as soon as possible.
5. Performance and load times
On the same note, let’s discuss site performance and load times. If your site is slow or performs poorly, it can quickly send your customers away.
Most people judge the quality of a company by its website. Regularly check your site performance and fix any issues as soon as possible.
Selling online can simultaneously be accessible and challenging, so ensure your customers have the best experience while shopping on your site.
6. Lack of payment options
The last issue we will discuss here is the need for payment options. Most people prefer multiple payment options based on convenience, and not providing them can turn them away.
You need to be moderate when offering payment options, as this may prove to be expensive for your business. Instead, focus on the few popular payment methods with your customers. These methods can be beneficial and help you reduce your checkout abandonment rates.
Best Practices to Perfect Ecommerce Checkout Process
The best way to deal with an issue is to get at its roots. Let’s see what you can do to better your checkout process.
1. Make the checkout process fast
People often abandon online shopping carts because the checkout process is not fast enough.
Here are some ways to make the checkout process seamless:
Offer guest checkout
Guest checkout allows customers to make purchases without signing in to your website or creating an account. The process is quick since none of the customer’s information is stored in your company’s database.
Autofill addresses
Use autofill on your ecommerce site to allow customers to fill out address fields quickly. This will make the process extremely convenient for them.
Allow social sign-in
Social sign-in gives your customers multiple sign-in options through accounts like their Google or Facebook accounts. This gives them a quicker checkout flow while allowing you to collect their details, such as their email addresses.
Use password managers
Let users log in via password managers. This allows them to save multiple passwords on a secure app and then use autofill to fill in the passwords.
2. Design checkout pages that are enticing to buyers.
Your web design is a significant part of the checkout experience. The simplicity of your checkout pages helps your customers efficiently complete the process.
Here is an example of a clean and simple checkout page from Somnifix.
If you scroll down the page, you will see it is filled with the product’s benefits, features, and user reviews. This contributes to a better user checkout experience.
Summarize cart details
Add a summary of the cart details on the checkout page. This way, customers can check what items they ordered and how many of each.
Simplify the checkout process.
Keep the checkout process plain and simple without any unnecessary buttons. Take a look at the checkout process at Bay Alarm Medical:
Their page tells customers everything they will get once they make the purchase. Their checkout process is relatively simple.
Add microcopy to guide users.
Microcopy refers to the words that you place on text placeholders in form fields, call-to-action buttons, etc.
You can use microcopy to guide users through the checkout page’s form fields or inform them about extra charges, return policies, and other information.
Prioritize the mobile experience
80% of customers have used a mobile phone to look up reviews of a particular product, compare prices, or search for alternatives. 79% of smartphone owners have bought something online using their phones in the last six months.
Pay attention to your customers’ mobile experience because that is where they usually shop online.
3. Prevent customers from leaving at the last minute
Checkout abandonment could be better. Imagine a customer so invested in your business that they enter the checkout stage. Then, for some reason, they will move away from your site.
As a business owner, you need to understand what causes your customers to leave at the last minute and find ways to avoid that.
Employ call to action.
Calls to action play a significant role in nudging customers to purchase. Good copywriting designed from an SEO perspective is crucial.
Loganix says this about the call to action –
“Call to action can’t be written in just minutes. We recommend an SEO copywriting approach: optimize for the keyword and intent target while being persuasive, ultimately focusing on the end-value a user receives.”
Use error notifications
Sometimes, users are unaware they are doing something wrong to cause an error on a page. Maybe they filled in incorrect information or left a form field empty on the checkout page.
Clear error notifications help users understand what they did wrong and go back and fix it without having to start filling the form again from scratch.
Offer multiple payment options.
Offering your customers various payment options allows them to pay according to their convenience.
Evaluate which payment platforms are the most popular among your customers and offer them as options.
Display trust signals
Since customers will enter sensitive information on your website, such as their credit or debit card details, you must ensure it is secure.
Take a look at how LFA Machines uses trust signals on the checkout page:
If you look at their Payment Method section, you will see, “Your card details are protected using PCI DSS v3.2 security standards.”
This is called a trust signal and assures customers that it is safe to enter their card details.
Connect customers to support
Another common reason customers abandon checkout is that they must wait to contact the company.
Sometimes, customers are looking for extra information about a product or have an inquiry. Encouraging customers to use live chat and email support helps them resolve their queries quickly.
Customers will abandon their carts even if you have a perfect checkout flow. When that happens, a great automation workflow can help you recover those potentially lost sales.
Executive Summary
Your ecommerce checkout flow is a crucial aspect of your business. Your customers have invested much time in your business and are ready to purchase.
However, the sad reality is that many customers never complete the checkout process for various reasons.
These reasons could include poor checkout page design, unclear instructions on how to proceed with checkout, slow and low-performing websites, website crashes or errors, or no chat support from the company.
It could also be due to extra hidden costs, limited payment options, or a poor mobile experience.
The reasons differ from company to company and customer to customer.
It is up to you to determine the reasons for your customers and fix the issues so they enjoy a simple and pleasurable shopping experience on your site.
This article originally appeared in the Omnisend blog and has been published here with permission.
