Do you have an online store with a great selection of quality items that consumers often add to their carts, but for some reason, they never finish the purchase? This means you may have a high cart abandonment rate. Abandoned carts are a common problem for online merchants.
Shoppers leave their carts for various reasons, but choosing the right payment solution can ensure that the checkout process is not one of them. Decathlon, one of the world’s largest sports goods retailers, have managed to reduce abandoned cart rates by half after implementing a reliable payment solution.
Find out why shoppers leave their carts and how choosing the right payment solution can help you increase conversion rates.
How is the abandoned cart rate calculated?
If you want to count your company’s abandoned cart rate, the easiest way to do it is by figuring out your cart conversion rate first. To do that, you need to divide the total number of completed purchases by the number of initiated sales (how many times shop visitors added items to their cart). Multiply this number by a hundred, and you’ll get your cart conversion rate in percentage.
The abandoned cart rate formula is a hundred minus your cart conversion rate. So if you have 500 completed transactions and 1200 initiated sales during the same month, your shopping cart conversion rate is 41.67%. Your abandoned cart rate is 58.33%.
Recent statistics by the Baymard Institute show that the average cart abandonment rate in e-commerce is 69.99%.
Why do shoppers abandon their carts?
Some cart abandonment reasons are very common and occur across different e-commerce stores. For example, extra costs that incur during the checkout, such as shipping fee and taxes, would make 48% of shoppers abandon their carts. Asking a visitor to create an account for shopping is the second-most common reason for leaving without going through the checkout. Slow delivery, an untrustworthy-looking checkout site, a complicated checkout process, and lack of varied payment methods are among the top reasons for cart abandonment.
A large portion of these issues can be solved by implementing an innovative payment solution.
How to reduce the cart abandonment rate
This is how you can use a payment solution to reduce your cart abandonment rate:
1. Offer popular payment methods
Lack of payment methods is one of the top reasons for cart abandonment. If a customer comes to the checkout and doesn’t find a convenient and reliable payment option, 1 out of 10 shoppers will leave their cart. Offering popular payment methods can help your business enjoy higher conversion rates and generate more sales.
kevin. offers account-to-account payments. Direct bank payments are not only convenient for consumers but also benefit businesses by reducing transaction costs and offering quicker settlement. Offering this payment method can help your business increase conversion rates and save money.
2. Provide local payment options
You can make your online store visitors feel welcome by offering their local payment methods, even if you run an international business. Integrating a payment service provider with European reach can help your business scale quicker and increase conversions.
When an online customer arrives at the checkout, they expect to be able to pay via their local bank. With kevin., you can accommodate this need because kevin. covers 27 EU and EEA countries and unlocks the market of over 350M+ potential customers.
3. Make the checkout easy
Around 17% of shoppers admit that too long or too complicated of a checkout process is a reason for abandoning their shopping carts. If clients have to enter the same information during multiple checkout steps, provide more information than needed and go through different windows, they may get frustrated and leave the checkout.
kevin. account linking feature creates a better payment flow and increases conversion rates by providing a seamless checkout experience. It also lets merchants quickly access operating cash flow and reduce transaction costs by eliminating card network fees.
4. Ensure secure and reliable checkout
Nearly 1 out of 5 consumers will abandon their carts if they think that a shopping site is unreliable. A secure and reliable checkout can increase conversion rates and the overall trustworthiness of the website.
kevin. has implemented the highest security standards that match those of the largest and most well-known banks. kevin.’s unique tokenization solution ensures that all the sensitive information that shoppers provide is secure and cannot be accessed by any unauthorised persons.
Moreover, kevin. offers a customisable checkout that can be adapted to match a company’s look and feel. It helps create a frictionless checkout experience that looks reliable and therefore increases conversions.
Watch your conversions grow with kevin.
Abandoned carts are a common issue for e-commerce merchants. More than 6 out of 10 shoppers add items to their online shopping carts but never complete the purchase. Some of the main reasons for abandoning carts are lack of payment methods, an inconvenient checkout and security concerns.
Implementing the right payment solution can help reduce abandoned cart rates. Choosing a payment provider that offers the most popular payment methods, local payment options, has a convenient checkout flow and ensures a high level of security can reduce business transaction costs and increase customer satisfaction.
If you’re looking for a payment solution that increases conversions, kevin. has great value to offer your business.
Adelina KiskyteFormer Senior Content Manager
