Lucy - BQ Magazine EditorThe festive season is fast approaching and for most brands, it’s the busiest and most lucrative time of the year. To capitalise on increased demand and booming online sales, it’s essential for retailers to understand what customers want and what turns them off. Being aware of red flags and obstacles can help you lower the risk of losing sales and reduce cart abandonment rates. In this guide, we’ll share some simple strategies to address customer turn-offs and increase online sales.
Delivery costs and extra charges
Research suggests that the most common cause of cart abandonment is expensive extras, including shipping and handling fees. High delivery costs and unexpected charges can drive customers away, encouraging them to choose retailers or sites that offer better value for money.
In 2024, almost 50% of consumers changed their minds at least once due to extra costs at the checkout. Providing affordable shipping, being transparent about additional charges and providing a range of delivery options can help to attract customers and persuade them to complete their orders. According to Shopify data, 47% of buyers will spend the minimum required to qualify for free shipping.
Complicated or expensive returns
Online shopping offers an array of advantages for consumers, but returns can be a sticking point, especially during a cost of living crisis. Studies show that more people are returning products because they can’t afford to keep all the items in their order. Free, hassle-free returns offer flexibility for buyers, which can prompt them to choose specific brands, websites or stores over others. Over 50% of people prefer to buy online and return in-store or via a physical collection point and 54% consider a simple, clear returns process important.
As a business owner, it’s important to cater to customer preferences and understand the impact of making decisions about how you accept and process returns. Using tools like returns management software can help to speed up and simplify the process at your end while also improving customer experience.
It’s helpful to communicate with your clients and ask questions to get ideas for the future and gauge how customers view your service. You may find that customers would spend more if they didn’t have to pay for returns or they could take items back to a store rather than posting them back to the retailer, for example.
Time-consuming or complicated checkout
One of the biggest draws of online shopping is speed. Many of us favour ordering online because it’s quick, easy and stress-free. We can now find and pay for products in seconds without leaving the couch or straying from our desks at work or our seats on the bus or train. Issues that complicate or slow down the process of ordering online can put customers off and push them towards competitors.
If it takes too long to check out, or there are complications, such as having to create an account, for example, you may find that people give up and abandon their carts. Try to ensure that the process of checking out is as rapid and simple as possible. Highlight potential barriers and use customer feedback to help you identify and address problems.
Slow delivery
Over 20% of US customers have backed out of buying products online because delivery was too slow, according to figures from Statista. Many of us are used to quick turnarounds. We expect next-day or speedy delivery options. If it takes several days to send items to customers, you may lose out to companies that ship orders faster.
Offering free same-day or next-day delivery may not be affordable for many businesses, but there are ways to entice customers without blowing the budget. Examples include free standard shipping, affordable next-day delivery and an annual delivery pass, which provides year-round access to fast, free deliveries in exchange for a one-off fee. It’s worth noting that you may need to caveat terms during busy periods. Many retailers charge next-day to the fastest available delivery during sales, for example.
Lack of trust
Buying online is convenient and quick, but it’s not always safe. Security is a priority for the majority of consumers, with over 70% of people admitting concerns over the safety of using websites that feature new technology, such as AI. A lack of trust can trigger uncertainty for online shoppers. If you run a store or sell products online, it’s crucial to ensure that you use secure payment processors and embrace tools and technologies that optimise site safety.
Brands up and down the country are preparing for the busiest time of year. If you’re looking to capitalise on the popularity of online shopping in the run-up to Christmas, it’s essential to be aware of customer turn-offs and address problems and obstacles. Issues like high delivery fees, slow shipping, complicated, expensive returns, complex checkout processes and a lack of trust can lead to increased cart abandonment rates.