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Decrease Shopping Cart Abandonment from Global Consumers

04 March, 2020

E-Commerce

According to a recent article, the global average rate of shopping cart abandonment is a staggering 75.6%. For retail e-commerce specifically, the cart abandonment rate is 72.8%, and in the fashion industry alone, 68.3%! The quickest and simplest way etailers can significantly decrease cart abandonment from global consumers is by simplifying shipping, customs, and returns.

Article Reference: https://truelist.co/blog/shopping-cart-abandonment-stats/

Shopping cart abandonment rates vary somewhat by region, but are fairly consistent across the globe. Rates by region include:

  • Asia-Pacific 76.3%
  • Middle East 76.1%
  • Latin America 75.3%
  • North America 74%
  • Europe 70.9%

Cart abandonment is a problem that all online retailers should be watching closely and looking for solutions to decrease. In fact, cart abandonment causes internet retailers to lose over $18 billion (USD) every year! Given that 55% of online shoppers leave their carts due to hidden extra costs, etailers are wise to take a closer look at their rates for shipping, customs, and returns for international shoppers where these rates can have a substantial impact on the final price of the cart.

Check out these scenarios that international shoppers find themselves in and solutions that etailers can apply to motivate consumers to finish the purchase.

 

Decrease Shopping Cart Abandonment Asendia 2

Problem 1: Shipping is too expensive

  • Scenario: Elli lives in Finland and finds the perfect shirt on a France-based website for €25. At checkout, she’s confronted with only one shipping option that brings her total to €55, more than double the price of the shirt! Elli abandons her shopping cart, despite the fact that she loves the shirt.
  • Problem: High cross-border shipping charges can deter shoppers from purchasing from internet retailers outside of their home country.

With the right international shipping partner, the France-based website would have been able to offer the shirt to Elli at a significantly lower shipping rate, increasing the chance that she would complete the checkout process and the etailer would gain a new customer.

 

Decrease Shopping Cart Abandonment Asendia 3

Problem 1: Shipping is too expensive

  • Scenario: Elli lives in Finland and finds the perfect shirt on a France-based website for €25. At checkout, she’s confronted with only one shipping option that brings her total to €55, more than double the price of the shirt! Elli abandons her shopping cart, despite the fact that she loves the shirt.
  • Problem: High cross-border shipping charges can deter shoppers from purchasing from internet retailers outside of their home country.

With the right international shipping partner, the France-based website would have been able to offer the shirt to Elli at a significantly lower shipping rate, increasing the chance that she would complete the checkout process and the etailer would gain a new customer.

Problem 3: Global Returns can be confusing and costly

  • Scenario: Jack lives in the USA and is shopping online for a pair of Italian shoes. He finds a style he really likes from an online retailer in Italy, but the retailer’s global returns policy is confusing. Jack is concerned if the shoes don’t fit well, he’ll pay twice as much to exchange them.
  • Problem: When online retailers offer returns solutions that are complicated or costly for shoppers, or even no returns solution at all, shoppers are often reluctant to finalize their purchases, especially when purchasing cross-borders.
  • Solution: Internet retailers that partner with a shipping provider that also offers solutions for global returns significantly improve their chances of attracting and retaining business from international shoppers.

By offering a convenient global returns option that is affordable, easy to use, trackable, and reliable, the Italian online retailer would provide Jack with the peace of mind he needs to give the international retailer a try. Jack would complete his purchase for the Italian shoes he really wants, knowing he could easily exchange them if the sizing or fit wasn't quite what he expected. A simple returns process might also entice Jack to purchase from this etailer again in the future.

Problem 2: Customs adds up, both time and money

  • Scenario: Olivia shops from her home in Australia and finds a UK brand offering the handmade style of jewelry she loves. All ready to checkout, she discovers that her parcel may be subject to customs fees, and will take extra time to clear between borders.
  • Problem: If an etailer is not familiar with the customs regulations of the countries they target, shipments to international shoppers can be tricky, in some cases resulting in delays and additional costs for the shopper.
  • Solution: Working with a global shipping provider that has expertise in the laws, requirements, and regulations of other countries can give an etailer the competitive advantage they need to attract cross-border shoppers.

With the right international shipping partner, the UK-based online retailer could offer Olivia a solution with a competitive shipping rate and duties paid in advance, in addition to a quick delivery, despite the distance. Knowing she could purchase the handmade jewelry she loves from an etailer across the ocean without the barrier of added cost and wait time, Olivia would not only complete the purchase, but would likely become a repeat customer. A win-win!

Problem 2: Customs adds up, both time and money

  • Scenario: Olivia shops from her home in Australia and finds a UK brand offering the handmade style of jewelry she loves. All ready to checkout, she discovers that her parcel may be subject to customs fees, and will take extra time to clear between borders.
  • Problem: If an etailer is not familiar with the customs regulations of the countries they target, shipments to international shoppers can be tricky, in some cases resulting in delays and additional costs for the shopper.
  • Solution: Working with a global shipping provider that has expertise in the laws, requirements, and regulations of other countries can give an etailer the competitive advantage they need to attract cross-border shoppers.

With the right international shipping partner, the UK-based online retailer could offer Olivia a solution with a competitive shipping rate and duties paid in advance, in addition to a quick delivery, despite the distance. Knowing she could purchase the handmade jewelry she loves from an etailer across the ocean without the barrier of added cost and wait time, Olivia would not only complete the purchase, but would likely become a repeat customer. A win-win!

 

Decrease Shopping Cart Abandonment Asendia 4

Problem 3: Global Returns can be confusing and costly

  • Scenario: Jack lives in the USA and is shopping online for a pair of Italian shoes. He finds a style he really likes from an online retailer in Italy, but the retailer’s global returns policy is confusing. Jack is concerned if the shoes don’t fit well, he’ll pay twice as much to exchange them.
  • Problem: When online retailers offer returns solutions that are complicated or costly for shoppers, or even no returns solution at all, shoppers are often reluctant to finalize their purchases, especially when purchasing cross-borders.
  • Solution: Internet retailers that partner with a shipping provider that also offers solutions for global returns significantly improve their chances of attracting and retaining business from international shoppers.

By offering a convenient global returns option that is affordable, easy to use, trackable, and reliable, the Italian online retailer would provide Jack with the peace of mind he needs to give the international retailer a try. Jack would complete his purchase for the Italian shoes he really wants, knowing he could easily exchange them if the sizing or fit wasn't quite what he expected. A simple returns process might also entice Jack to purchase from this etailer again in the future.

Internet retailers - don’t miss out on potential sales from online shoppers around the globe! Asendia offers a range of solutions to provide efficient and cost-effective customs clearance, international shipping, and global returns options for your customers, no matter where in the world they are shopping.

 

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