by Christy Dunaway, Co-owner of Heidi’s Handmade Haven
This headline sounds like a bold claim, but I have the facts to back it up. Stick with me just a few moments while we show you the secret to solving your abandoned cart problem immediately and permanently.
This morning, I went online shopping for a new weight bench to replace the one my grandkids demolished (don’t ask). I picked out two suspects from the online lineup immediately: basically the same type of bench and features, similar customer ratings, but one at a price point $20 lower. Naturally, I put the cheaper one in my cart and proceeded to check … WHOA. Shipping was $25! Bump that bad boy right back out of my cart, go back, and buy the more expensive one.
Why? The price was neck-and-neck when shipping was factored in, and the weight benches were extremely similar products and comparably rated. Simply put, why would I pay $25 more for a cheaper weight bench when I can get a more expensive weight bench without making FedEx rich(er)?
I’ve been in marketing for over 20 years, and I honestly know how this stuff works. But still in my mind I would rather get a more expensive (and theoretically higher quality) product than to pay for shipping. After all, it’s a better weight bench, right?
Maybe. Maybe not. But I’m not alone in thinking that way.
That stats show most American shoppers want and expect a free shipping option on online orders.
According to a report published by CapitalOneShopping.com, some 70% of online shoppers admit they abandon carts when they are presented with shipping or other surprise fees. Eighty-one percent choose to spend more just to get free shipping, and despite the “Amazon effect” of expecting everything to be delivered overnight, free shipping is actually more important to consumers than fast delivery. They’re willing to wait a reasonable time for their purchase to be delivered, they just aren’t willing to pay for it.
It stands to reason that any surprise fees can produce the same abandoned cart results, so the best strategy to keep a customer moving through the purchase process is simply to price the product clearly and fairly, keeping everything easily read upfront, so they don’t feel whammied with shipping or other extra costs later.
Practically speaking, a customer is perfectly fine spending $150 on that gorgeous one-of-a-kind handmade bag. They are not willing to spend $125 for the same bag and pay $25 for shipping, stocking fees, handling fees … call it what you will.
Ending abandoned carts means charging them the listing price plus tax, exit stage right, close curtain.
Now … the Good News
The upside to knowing what causes customers to ditch you before saying, “I do,” is that you can mend your ways before you lose another sale.
Number one is obvious: just bump your prices enough to cover shipping.
You may worry you’ll lose sales by pricing your products higher, but when you eliminate the majority of abandoned carts, your overall sales will most likely increase, not decrease. Invest in a postal scale and use the online pricing guides provided by USPS or your carrier of choice. A plethora of shipping apps are available to make it easier to determine shipping before pricing your online products. Compare options like Ship, Shippo, Pirate Ship, and others.
Reduce purchase friction by requiring less information from your customers.
Asking for information not essential for the sale just gives your customers reasons to back out before buying. Provide options like ordering as a guest without creating an account, and don’t ask for loads of personal information that isn’t necessary to process their payment and ship their product, or at least make it obvious that providing additional information is optional.
While you’re pricing products, think about offering free returns.
According to the same report by CapitalOne, about 30% of online shoppers prioritize free returns over free shipping. If you have enough wiggle room in the profit margin, providing a free return policy could boost sales and reduce abandoned carts even further. Offering free returns tells your customers that you are willing to stand by your products, giving them more confidence in ordering from a complete stranger.
Offer as many payment methods as possible.
Yeah, setting all that up feels like a lot. But, there are so many different payment methods now, and every customer has a strong preference. Every option you offer means customers you probably wouldn’t earn otherwise.
Consider following up on abandoned carts.
In situations where you do have their email address or contact info, consider sending an email half an hour or so after a customer abandons a cart. You may offer them a small percentage off if they buy now. Even 10% off can be enough to take them from, “I dunno,” to “Yep! I’ll take it.”
Your email doesn’t have to only be an offer. A friendly nudge or an offer to answer any questions they have puts your product back top of mind. If you’re already a marketplace Seller, you don’t have to worry about this part. If a customer is logged into their cart, a marketplace like Amazon, Etsy, or Godly Goods is usually able to nudge them on your behalf.
Eliminate distractions in the checkout.
While it’s tempting to want to get the most out of the checkout experience with up-sells and add-ons, that can add confusion and friction to the current sale. Sellers can sometimes toss up so much extra stuff in the checkout process that the customer bails before making the first purchase.
I hope we’ve convinced you to treat shipping like any other expense and work it into your product price upfront. As the stats show, this will almost certainly improve your sales!
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