3 Reasons Your Customers Are Abandoning Their Carts and How You Can Fix It

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Ask any eCommerce business owner of their biggest hurdle to increasing revenue, and chances are that their answer will be cart abandonment. A phenomenon which can be simply understood as the customer changing their buying decision at the last minute, cart abandonment has fomented more loss to global eCommerce than all other verticals combined.

Source : Statista | Total e-commerce revenue in Tiger Cub economies from 2017 to 2020 with a forecast until 2025

A survey by Statista in 2019 reported that globally more than 69% of shopping carts were abandoned at the last minute, causing platform owners to incur a cumulative loss of $18 billion every year in revenue. As eCommerce continues to gain popularity among Indonesians, cart abandonment is the next hurdle to eCommerce becoming a $38.19 billion industry by the end of Q4 2021.

Thus, in today’s article, we will take a closer look at the various reasons which entice customers to abandon their carts at the last minute and possible solutions you can adopt to mitigate this problem.

3 Reasons Why Customers Abandon Their Carts

Source : Statista | Primary reason for digital shoppers worldwide to abandon their carts as of January 2019

1. Out of Stock

A global survey conducted among worldwide online shoppers in 2019 revealed that 28% of respondents abandoned their carts at the last owing to out of stock items. As most first time eCommerce retailers in developing markets (like Indonesia) do not make use of inventory management software, oftentimes, products are wrongly advertised as being available when in reality, they are out of stock. While one would like to believe that this only causes a loss in revenue; however research indicates that such discrepancies often lead to tarnation of customer loyalty, trust and retention, all of which are key determinants of success in eCommerce.

2. Cost of Delivery

41% of respondents to the above survey reported abandoning their carts if the cost of delivery or shipping was higher than they estimated. As the competition among eCommerce retailers increases and each one wants to offer the lowest price to their customers, cutting the delivery cost across all consumer durables is forecasted to become the next eCommerce battleground.

While there are many reasons which contribute to this increased cost, one of the most significant of them is the challenges of last mile delivery in upcoming economies like Indonesia, which are far from cost effective. Although there are now multiple companies battling to reduce the cost of delivery, however for the moment maybe a discount elsewhere, will help ease the burn for the customer.

3. Lack of Preferred Payment Methods

Last but not least, 20% of respondents reported that their preferred payment method was unavailable, which made them abandon their carts at the last minute. Although the survey referred here aims to capture the sentiments of worldwide shoppers, this proponent of cart abandonment is closer to home. 

As internet penetration across the country crosses the previously benchmarked 56% according to JP Morgan, research indicates that more than 74.8% of consumers are on the lookout for a payment gateway that has smooth cross-functional support. Now more than ever before, consumers want their eCommerce payments to be completed in one session and without much manual effort, signalling the demand for the payment gateway of tomorrow.

How You Can Decrease Cart Abandonment

As we pointed out in preceding paragraphs, there are quite a few reasons behind cart abandonment by customers; however, the most significant of them continue to be lack of a preferred payment gateways and increased delivery costs, both of which can be conveniently addressed via Durianpay.

1. Lack of Preferred Payment Method

A survey conducted among Indonesian eCommerce shoppers in 2020 indicated that more than 29% of them prefer completing their purchases through a mobile wallet. Closely following are credit and debit cards which are the preferred payment methods for 14% and 10% of consumers, respectively.

However, research indicates that most payment gateways currently operational in the market offer customers either of their preferred payment methods and not all of them at one place, thereby increasing friction and resistance. Along with this, as Bambang Robi’in, Professor of Informatics Engineering at the Universitas Atma Jaya Yogyakarta, shares in his research paper, since the majority of the internet in Indonesia is largely unstable, oftentimes consumers need to switch between available payment methods based on which one will offer them the fastest checkout. 

Durianpay’s proprietary offering Durian Checkout not only offers consumers all of their preferred payment gateways under one roof but also allows them to change between channels with ease paired with intelligent nudges informing them of the best way to pay, thus increasing your conversion rate and revenue. 

Paired with Durian Flow, you can seamlessly monitor the entire payment journey of your customers, thus allowing you to make intelligent adjustments along the way, increasing customer satisfaction and convenience in the long run.

2. Increased Delivery Cost

While an increased delivery cost is catalyzed by a number of factors which fall outside your purview, one established way of decreasing the overall cost to your consumer is by offering them discounts right at the payment page. By cueing promotions across all payment modes, not only do you earn the loyalty of your customers by reducing their cost but also, in the long run, increase retention, leading to fewer cancellations and refund requests. 

However, not all promotion platforms are made the same, and that is why Promotions by Durianpay is designed from the ground up to help you earn the loyalty of your customers, run multiple promotions seamlessly at checkout while wisely incentivizing your customers via insightful budgeting and smart quotas.


Unlocking the eCommerce Potential of Indonesia

eCommerce in Indonesia is forecasted to become a $56.36 billion industry by the end of Q4 2025 as per McKinsey, and integrating a payment gateway which puts your customer first will be a key determining factor in deciding your share of the Indonesian eCommerce pie.

Contact us today for a free demo and experience how a seamless integration of Durianpay can help you reduce cart abandonment and increase your revenue.