Ecommerce and Retail • Ecommerce Design
Ecommerce checkout optimization: Eight strategies to turn abandoned carts into revenue
24 May 2018 • 10 min read
Every year, up to $136 billion in sales revenue is lost due to abandoned online shopping carts.
While a multitude of statistics are floating around about cart abandonment rates, the consensus places the average rate at a staggering 75.7%. This means that for every ten shoppers who add an item to their cart, over seven will leave your site without completing their purchase. That’s a massive missed opportunity for ecommerce retailers to convert visitors into paying customers.
Some of these abandoned carts are inevitable—shoppers may simply be browsing, comparing prices, or saving items for later. However, a significant portion of these lost sales can be attributed to friction during the checkout process. With ecommerce conversion rates varying from 1% to 4% depending on the industry, improving the checkout experience can provide a substantial boost to your bottom line.
Even if your conversion rate is above industry average, there’s always room for improvement. Consider this: a 1% increase in conversion rate could translate into thousands or even millions in additional revenue, depending on your store size. By optimizing your checkout process and understanding best practices, you’re not just saving abandoned sales, you’re also providing a superior customer experience that encourages repeat customers and long-term loyalty.
To help you get started, we’ve outlined eight of the most effective ways to optimize your ecommerce checkout and reduce friction. By implementing these strategies, you’ll eliminate common pain points that cause shopping cart abandonment, making it easier for shoppers to complete their purchases.
One of the leading reasons for cart abandonment is the sudden appearance of additional costs, like unexpected shipping or processing fees at checkout. A recent study found that nearly half of people surveyed said that their top reason for abandoning an online shopping cart is because of hidden or extra costs like shipping, taxes, and other fees.
If offering free shipping is feasible for your business, it’s an excellent strategy to reduce this friction point and encourage conversions. You could also increase your product prices to cover for it, but that can also negatively affect your conversion rates. It may take some testing and some math to find the right solution for your business.
If free shipping isn’t a viable option, being upfront about your fees early on in the shopping journey is critical. Make sure your shipping costs are visible in the product description or provide a shipping calculator on the product page. Or, implement free shipping after a certain cart value is reached, and create a banner on the site that encourages shoppers to meet that minimum — after all, 80% of shoppers expect free shipping above a certain threshold.
Whatever your strategy — whether you offer free shipping on all orders, a flat fee, or you integrate a shipping cost calculator — your goal is to create transparency, which builds trust and makes it easier for customers to decide to complete the purchase.
Many customers are wary of creating yet another online account just to make a single purchase. The thought of sharing their information with another merchant, filling out long forms, and remembering another password can lead to hesitation and, ultimately, cart abandonment. Of those same people surveyed about their reasons for abandoning their carts, more than a quarter of them indicated that they had done so because they were required to make an account.
Avoid this friction point by offering a guest checkout option. Letting customers complete their purchase as a guest makes the checkout process faster and easier, and it avoids introducing a new commitment when they’re ready to buy. You can still prompt them to create an account post-purchase by highlighting benefits such as faster checkout next time, access to order tracking, and exclusive discounts.
A streamlined, single-page checkout experience helps reduce the cognitive load for customers. It eliminates the “checkout fatigue” that occurs when multiple steps and pages are involved, leading to confusion and frustration. By keeping all necessary fields — shipping information, billing details, and payment options — on one page, you eliminate unnecessary clicks and reduce the chances of customers giving up.
To optimize the single-page checkout, use a clean, logical layout that groups related fields together. For example, start with personal details, followed by shipping information, and end with payment details. Make sure that each section is visually intuitive and uses clear labels and instructions. The ultimate goal is to create a seamless experience where the customer always knows exactly what’s happening and what’s expected of them.
To further reduce friction, include autofill and address validation features to minimize typing errors and speed up the process. Consider integrating progress indicators when certain pieces of information are added, like “Your order will arrive by [estimated date]” when they enter their location. Finally, make your CTA buttons (like “Proceed to Payment” or “Place Order”) prominent and ensure they are clearly visible on every step of the checkout process.
The last thing you want is for your customer to hit the “Buy Now” button, only to be redirected to a third-party site that looks completely different. This is more common than you might think, and it can lead to confusion and distrust, which ultimately results in abandoned purchases. To optimize conversions, ensure that your payment gateway is seamlessly integrated into your website so that the entire payment process is smooth and consistent.
A seamless integration not only looks more professional, but it also provides a better user experience. Customers feel more confident entering their payment information when they see a familiar layout and branding. It also allows you to reduce loading times, which can be another friction point in the checkout process.
If redirecting to an external site is unavoidable, communicate clearly to the customer what’s about to happen and emphasize that their payment is still secure. Reinforce this message with trust signals such as security badges and familiar payment logos like Visa, MasterCard, and PayPal.
These days, shoppers expect flexibility when it comes to payments. While traditional methods such as credit cards and PayPal are a must, consider adding newer options like buy-now-pay-later services (e.g., Afterpay, Klarna). Providing flexible, interest-free payment options can reduce friction and increase the likelihood of conversion by alleviating the pain point of high purchase costs. Supporting direct bank transfers and digital wallets like Apple Pay and Google Wallet will also reduce friction in the checkout process.
Offering multiple payment methods is particularly effective for capturing first-time buyers who are hesitant about committing to a large payment up front. It also helps cater to a broader audience and reduces the likelihood of losing sales because a customer’s preferred payment option wasn’t available.
Shoppers are more security-conscious than ever, and rightfully so. With the rise of online fraud and data breaches, it’s no surprise that many buyers will abandon their carts if they have the slightest doubt about the safety of your checkout process. The majority of consumers say they’ll avoid companies that have been hit by a cyberattack in the last year.
To build trust with your potential customers, make sure your website clearly communicates the security measures you have in place. Start by displaying visible trust signals throughout the checkout process, like:
A poor-performing website can undo all your efforts to optimize the checkout process. Issues such as broken links, server errors, or even a few seconds of downtime can erode customer confidence and result in lost sales.
To avoid these pitfalls, regularly conduct performance audits of your site and address any issues promptly. Key areas to monitor include:
Beyond the technical aspects, focus on creating a visually appealing and functional checkout page that’s free of clutter. You can make use of upselling and cross-selling opportunities during checkout, but make sure you’re using clean layouts, avoid unnecessary distractions like pop-ups, and provide a clear, step-by-step path to complete the purchase.
With 60% of all online purchases coming from mobile devices, optimizing your checkout process for mobile is not just a good idea — it’s an absolute necessity. Despite the clear shift to mobile shopping, many ecommerce sites still offer a subpar mobile experience, leading to higher cart abandonment rates. A mobile-friendly checkout goes beyond simply fitting your desktop layout onto a smaller screen. It involves a complete rethinking of the user experience.
Here’s how to optimize your mobile checkout for higher conversions:
Optimizing your checkout isn’t about overhauling everything at once. It’s about making small, strategic improvements that eliminate friction and build trust. By implementing a few key changes — like transparent shipping costs, guest checkout, and mobile optimization — you can significantly reduce cart abandonment and boost your conversion rate.
Remember, the easier and more straightforward the checkout, the more likely shoppers are to complete their purchase and return in the future. Make the process smooth, intuitive, and above all, focused on delivering a great experience.
