Online shopping has exploded in popularity in recent years, and it’s not expected to slow any time soon. According to Statista, retail ecommerce sales are expected to grow from $875 billion in 2022 to over $1.3 trillion in 2025. Although ecommerce may seem like a win-win situation for retailers and consumers, some businesses find driving conversions in the ecommerce space to be a challenge.
Cart abandonment occurs when a shopper initiates a purchase but does not complete the order. Shoppers demand convenience and choice and are quick to lose interest in a product. The rate of cart abandonment for online retailers is high; according to a report from the Baymard Institute, the global average cart abandonment rate is nearly 70 percent. This represents billions of dollars in missed revenue.
To reduce cart abandonment and boost sales, online retailers should focus on designing a seamless and fast checkout experience for shoppers. According to the Baymard Institute report, ecommerce sites can increase their conversion rate by up to 35 percent simply by making design changes to their checkout process. With payment options such as Amazon Pay, merchants can offer a safe and secure payment method that lets shoppers place orders in just a few clicks.
What are the top reasons for cart abandonment?
Shoppers leave items in their online cart for many reasons. According to the Baymard Institute, extra costs, such as shipping and handling costs that are too high, are the number one reason for cart abandonment. Up to 48 percent of users abandon their carts for this reason. Shoppers often feel cheated or blindsided when shipping costs and other expenses aren’t factored in to their total order until the last step. Retailers can avoid frustrating shoppers by displaying the cost of shipping fees as soon as a shopper adds an item to their cart.
The second reason shoppers abandon their carts is that the checkout process requires them to create an account before finalizing their order. Some shoppers will become impatient with the extra steps involved in account registration, some don’t trust the website with their credit card information, and many have concerns about how their data will be used.
Other reasons that contribute to cart abandonment are a lack of payment method options and a confusing or complicated checkout flow. All of these reasons underscore the importance of an optimized checkout experience that balances speed of transacting with security.
What about mobile shopping?
Today, retailers have many opportunities to engage with shoppers across a wide variety of channels. Online sales made from mobile, desktop, laptop, and tablet devices have grown year over year. Smartphones have become the most popular device type among US shoppers, according to Statista. Social ecommerce—which is when shoppers engage with brands through social media channels—is also on the rise.
These trends can be attributed in part to the increasing amount of time that people are using their mobile phones. In 2022, the average person spent 4 hours and 30 minutes on their mobile device every day in the US according to an Insider Intelligence report. Although creating a strong digital presence is important, ecommerce businesses can boost their sales by designing a streamlined checkout experience that appeals to mobile shoppers who are on the go.
Fast and secure payment methods, such as one-click and express checkout options, are becoming increasingly popular because they let shoppers purchase goods without being redirected to another web page. These payment methods also give shoppers the ability to store their credit card information on file so that they don’t have to manually reenter that information each time they want to place an order.
Why Amazon Pay?
Amazon Pay benefits both shoppers and merchants. With Amazon Pay, shoppers have a simpler checkout experience. Rather than creating a new account, shoppers can use their existing Amazon.com account, which they already trust with shipping and credit card information. Amazon Pay also offers additional payment methods and a familiar checkout flow. In addition, Amazon Pay gives merchants advantages in a competitive marketplace; businesses that offer Amazon Pay as a payment option benefit from Amazon’s strong brand recognition and advanced fraud detection.
Amazon Pay also streamlines the checkout process for online shoppers. According to PYMNTS.com’s 2022 Buy Button report, Amazon Pay is 46 percent faster than traditional payment methods. That’s because shoppers can use their existing Amazon accounts to place online orders, saving them the time it would take to set up a new account or enter their personal information.
Ecommerce businesses can integrate Amazon Pay across their websites and mobile applications. They also have the option to integrate Amazon Pay directly into native applications. The advantage of that option is that shoppers can complete their purchase without the need to go to a mobile browser to finalize the order.
By facilitating a faster checkout experience across mobile, desktop, laptop, and tablet devices, online retailers can increase their sales, reduce their rate of cart abandonment, and attract repeat shoppers. Tens of thousands of sites already offer Amazon Pay to online shoppers. To learn more, go to our business page.