Online marketing is aimed at leading a customer to complete the sales cycle by making a purchase that goes to your fulfillment warehouse for processing. Fourth quarter 2017 reports show that more than three-quarters of shopping carts are abandoned before check-out,leaving a number of opportunities for conversion.
Many of these shopping carts are abandoned because the user is simply at the browsing stage. What can you do to improve the closing rates of customers who ultimately change their mind about a purchase? One strategy that’s caused some debate in the online marketplace is the idea of dropping the prices of items left sitting in a shopping cart.
Solving the Riddle of Abandoned Shopping Carts
The number one reason given by customers for abandoning shopping carts is that the additional costs, such as shipping and sales tax, were too high. It stands to reason that lowering the actual price of the item would offset the other charges and make the purchase more attractive.
Some larger companies have used a method in which abandoned items are added to a customer’s wish list. On future visits, the consumer is notified if the price of that item has gone down.
eBay: One Company’s Experience
Last month, eBay sent a letter to their sellers encouraging them to reduce the price of items left behind in online carts in an effort to close the sale. Not surprisingly, the missive generated some strong reactions on both sides of the issue.
Interestingly, one eBay seller took the opposite strategy and raised the price on abandoned items on the basis that the shopper evidently had interest. The seller reports that out of four such items, two actually sold at the higher price.
Will Customers Game the System?
The biggest objection to lowering the price on abandoned items is that customers will catch on quickly and start deliberately leaving carts behind to trigger a price reduction. Online forums show that shoppers are discussing the issue and comparing experiences to get a sense of retailer strategies.
Tips for Closing the Sale
Instead of viewing abandoned shopping carts as a problem, consider them valuable feedback to help refine your sales funnel.
• State shipping policies up front. As previously noted, the cost of shipping and additional fees is the primary reason behind shopping cart abandonment. You may want to consider flat-rate or free shipping and absorb the difference into your selling prices.
• Make sure your checkout process is as uncomplicated as possible. Studies show that seven fields is the optimum number.
• If your site isn’t already optimized for mobile, do it now.
• Use a persistent shopping cart for a seamless experience.
• Offer multiple payment options. Financial transactions have moved beyond credit cards. Include PayPal, Apple Pay, Google Wallet and other digital payment forms.
First-Rate Fulfillment Warehouse Service from Shopping Cart to Final Delivery
A great online shopping experience shouldn’t end once the customer hits “Place Order.” Contact us to learn why Medallion Fulfillment & Logistics should be your number one choice for quality e-commerce fulfillment warehouse services in the Los Angeles, California area and in the greater United States.