“Cart abandonment is a huge issue for online retail,” said our analyst Sky Canaves on our “Behind the Numbers: Reimagining Retail” podcast, citing that just over 70% of shopping carts are abandoned, according to data compiled by Baymard Institute from the past nearly two decades.
“Complicated checkout processes and [a] lack of preferred payment options are some of the leading reasons why shoppers abandon carts. It’s also something that’s [within a] retailer’s control to manage,” said Canaves.
Here are four technologies that can help retailers streamline the checkout and payment process to reduce cart abandonment.
This year, 53.4% of the US population will be mobile wallet users, per our forecast. That number will rise to nearly two-thirds (64.5%) by 2027, with most of that growth coming from mobile-first Gen Z consumers.
As adoption increases, retailers should consider how mobile wallet integration can reduce friction in the payment process:
Composable commerce is a modular approach to commerce that gives brands flexibility to swap out the various components of their tech stacks to fit their specific needs, per our US Composable Commerce Explainer report.
This modular approach doesn’t just help improve search engine optimization or the customer experience—it can also increase conversions and reduce cart abandonment rates.
For example, Chilly’s, a UK-based water bottle brand, moved to a composable tech stack after facing limitations on its platform to support multiple currencies and languages. This pivot resulted in an 18% YoY increase in overall conversions and a 41% YoY reduction in its cart abandonment rate.
Retailers can use generative AI to guide and personalize the shopping journey, streamlining the decision-making process and ultimately reducing cart abandonment rates.
A quarter of US consumers have abandoned a cart because they had to create an account, and 18% have abandoned a cart because of a long or complicated checkout process, per Baymard.
In addition to digital wallets, retailers should consider these solutions to ensure a quick and convenient checkout process:
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.
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