Decrease Shopping Cart Abandonment from Global Consumers

30 March, 2023

E-Commerce

According to a recent article, the global average rate of shopping cart abandonment is a staggering 79.53%. For retail e-commerce specifically, the cart abandonment rate is 72.23%, and in the fashion industry alone, 84.06%!

The quickest and simplest way that etailers can significantly decrease shopping cart abandonment from global consumers is by simplifying shipping, customs, and returns.

Shopping cart abandonment rates vary somewhat by region, but are fairly consistent across the globe. Rates by region include:

  • Asia-Pacific 76.3%
  • Middle East 76.1%
  • Latin America 75.3%
  • North America 74%
  • Europe 70.9%

Cart abandonment is a problem that all online retailers should be watching closely and looking for solutions to decrease. In fact, cart abandonment causes internet retailers to lose over $18 billion (USD) every year! Given that 48% of online shoppers leave their carts due to hidden extra costs, e-tailers are wise to take a closer look at their rates for shipping, customs, and returns for international shoppers where these rates can have a substantial impact on the final price of the cart.

Check out these scenarios that international shoppers find themselves in and solutions that etailers can apply to motivate consumers to finish the purchase.

 

Decrease Shopping Cart Abandonment Asendia 2

Problem 1: Shipping is too expensive

  • Scenario: Elli lives in Finland and finds the perfect shirt on a France-based website for €25. At checkout, she’s confronted with only one shipping option that brings her total to €55, more than double the price of the shirt! Elli abandons her shopping cart, despite the fact that she loves the shirt.
  • Problem: High cross-border shipping charges can deter shoppers from purchasing from internet retailers outside of their home country.
  • Solution: Etailers can work with a global shipping provider that offers a range of affordable solutions for sending parcels to shoppers no matter where in the world they are.

With the right international shipping partner, the France-based website would have been able to offer the shirt to Elli at a significantly lower shipping rate, increasing the chance that she would complete the checkout process and the etailer would gain a new customer.

 

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Problem 2: Foreign websites can be confusing if not localized

  • Scenario: Thomas is shopping online from Switzerland and found a new jacket that he wishes to purchase from a Japanese e-tailer. They have his preferred size and color available, but the currency showcased at checkout is a symbol he is unfamiliar with. Thomas is worried that the price shown at checkout will be significantly higher when converted to his own country’s currency.
  • Problem: Among other regional factors, differences in currency and price ranges between regions can dismay potential customers at checkout when their preferred currency is not available. This often leads consumers to abandon their shopping carts and look elsewhere to more familiar retailers for their goods.
  • Solution: In the current e-tailer business world, with shipping internationally in high demand, it is important for online retailers to partner with a shipping provider that can offer global digital e-commerce solutions. These solutions can empower online retailers to grow across borders by localizing their website to improve the shopper’s experience.

With a suitable shipping provider, the Japanese retailer could have provided Thomas with the ability to view products from any inventory source in the world as well as been able to control price ranges varying from region to region. It would have also been possible for Thomas to browse their inventory in the currency and language of his choice, leading him to a localized checkout with his preferred payment option. More localization at checkout will ensure that Thomas does not look elsewhere.

 

Decrease Shopping Cart Abandonment Asendia 3

Problem 1: Shipping is too expensive

  • Scenario: Elli lives in Finland and finds the perfect shirt on a France-based website for €25. At checkout, she’s confronted with only one shipping option that brings her total to €55, more than double the price of the shirt! Elli abandons her shopping cart, despite the fact that she loves the shirt.
  • Problem: High cross-border shipping charges can deter shoppers from purchasing from internet retailers outside of their home country.

With the right international shipping partner, the France-based website would have been able to offer the shirt to Elli at a significantly lower shipping rate, increasing the chance that she would complete the checkout process and the etailer would gain a new customer.

Problem 3: Global Returns can be confusing and costly

  • Scenario: Jack lives in the USA and is shopping online for a pair of Italian shoes. He finds a style he really likes from an online retailer in Italy, but the retailer’s global returns policy is confusing. Jack is concerned if the shoes don’t fit well, he’ll pay twice as much to exchange them.
  • Problem: When online retailers offer returns solutions that are complicated or costly for shoppers, or even no returns solution at all, shoppers are often reluctant to finalize their purchases, especially when purchasing cross-borders.
  • Solution: Internet retailers that partner with a shipping provider that also offers solutions for global returns significantly improve their chances of attracting and retaining business from international shoppers.

By offering a convenient global returns option that is affordable, easy to use, trackable, and reliable, the Italian online retailer would provide Jack with the peace of mind he needs to give the international retailer a try. Jack would complete his purchase for the Italian shoes he really wants, knowing he could easily exchange them if the sizing or fit wasn't quite what he expected. A simple returns process might also entice Jack to purchase from this etailer again in the future.

Problem 2: Customs adds up, both time and money

  • Scenario: Olivia shops from her home in Australia and finds a UK brand offering the handmade style of jewelry she loves. All ready to checkout, she discovers that her parcel may be subject to customs fees, and will take extra time to clear between borders.
  • Problem: If an etailer is not familiar with the customs regulations of the countries they target, shipments to international shoppers can be tricky, in some cases resulting in delays and additional costs for the shopper.
  • Solution: Working with a global shipping provider that has expertise in the laws, requirements, and regulations of other countries can give an etailer the competitive advantage they need to attract cross-border shoppers.

With the right international shipping partner, the UK-based online retailer could offer Olivia a solution with a competitive shipping rate and duties paid in advance, in addition to a quick delivery, despite the distance. Knowing she could purchase the handmade jewelry she loves from an etailer across the ocean without the barrier of added cost and wait time, Olivia would not only complete the purchase, but would likely become a repeat customer. A win-win!

Problem 3: Customs adds up, both time and money

  • Scenario: Olivia shops from her home in Australia and finds a UK brand offering the handmade style of jewelry she loves. All ready to checkout, she discovers that her parcel may be subject to customs fees and will take extra time to clear between borders.
  • Problem: If an etailer is not familiar with the customs regulations of the countries they target, shipments to international shoppers can be tricky, in some cases resulting in delays and additional costs for the shopper.
  • Solution: Working with a global shipping provider that has expertise in the laws, requirements, and regulations of other countries can give an etailer the competitive advantage they need to attract cross-border shoppers.

With the right international shipping partner, the UK-based online retailer could offer Olivia a solution with a competitive shipping rate and duties paid in advance, in addition to a quick delivery, despite the distance. Knowing she could purchase the handmade jewelry she loves from an etailer across the ocean without the barrier of added cost and wait time, Olivia would not only complete the purchase, but would likely become a repeat customer. A win-win!

 

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Problem 4: Global Returns can be confusing and costly

  • Scenario: Nate lives in the USA and is shopping online for a pair of Italian shoes. He finds a style he really likes from an online retailer in Italy, but the retailer’s global returns policy is confusing. Nate is concerned if the shoes don’t fit well, he’ll pay twice as much to exchange them.
  • Problem: When online retailers offer returns solutions that are complicated or costly for shoppers, or even no returns solution at all, shoppers are often reluctant to finalize their purchases, especially when purchasing cross-borders.
  • Solution: Internet retailers that partner with a shipping provider that also offers solutions for global returns significantly improve their chances of attracting and retaining business from international shoppers.

By offering a convenient global returns option that is affordable, easy to use, trackable, and reliable, the Italian online retailer would provide Nate with the peace of mind he needs to give the international retailer a try. Nate would complete his purchase for the Italian shoes he really wants, knowing he could easily exchange them if the sizing or fit wasn't quite what he expected. A simple returns process might also entice Nate to purchase from this etailer again in the future.

 

Online retailers - don’t miss out on potential sales from shoppers around the globe! Asendia offers a range of e-PAQ solutions to provide efficient and cost-effective customs clearance, international shipping, and global returns options for your customers, no matter where in the world they are shopping.
The World is Your Address!

CONTACT US FOR A FREE CONSULTATION & QUOTE

 

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