One of the biggest problems in online selling is shopping cart abandonment: when buyers fail to complete the purchases they start. Research firm Baymard Institute estimates that the average online shopping cart abandonment rate is 69.2%.1 This article looks at why shoppers abandon their carts, and how you can leverage the strength of the PayPal brand to help you increase conversion rate.
The impact of trust on shopping cart abandonment.
One reason shoppers abandon carts is trust – the perception by visitors that your business is legitimate and reputable. A lack of trust in a site and its ability to securely handle credit card and other sensitive information can lead to checkout abandonment.1 The first step in establishing trust is to show customers they’re transacting with a reputable business. After all, they’re about to give you, a complete stranger, their sensitive information. Here are several things you can do:
A professionally designed website can have a huge impact on the trust level of a first-time shopper. It shows the world you’ve put thought, sweat, and money into presenting your business to the world. Likewise, spelling and grammar errors say you’re not serious about your business.
Trust seals can help reduce shopper anxiety and improve confidence, yet many brands don’t display security or trust information during the checkout process. They come in a variety of flavors and can be placed where they can be seen throughout the site, such as in the header or footer. Just be sure to do research and only display trust seals from reputable sources.
Satisfaction guarantees help reassure shoppers you’re willing to accept returns for items. Your satisfaction guarantee seal doesn’t have to be fancy – there are thousands of them available free online. Put it where the customer can see it on every page, such as the global footer, and make sure to honor any guarantees you make.
Nothing is more frustrating than having an unanswered question about your product or service. Your shoppers are displaying interest in your goods and want to find out more – but, alas, they’re unable to. If you just don’t have the staff to handle an inbound 800-number, make sure to have a customer service email address.
Make sure to include an “About Us” section. Tell the story of how you started your business or why you carry the products you carry. Include images of you and your employees, even your warehouse or office (if you have one). Even posting your company’s mailing address can reassure shoppers they’re dealing with real people at a real company.
Shoppers today demand more choices than ever – they expect a wide range of products, services, and features. That expectation extends to payment options. In a recent study, 31% of online shoppers said they will only shop on a site that they know offers their preferred payment method.2
If you’re considering PayPal as your payments provider, here’s some good news: Research firm Nielsen notes that, on average, PayPal customers complete their transactions 88.7% of the time.3 PayPal Checkout conversion is, on average, 60% better than “other digital wallets” and 82% better than “all payment types combined.3
PayPal Checkout makes it easy for shoppers to complete their purchases with features like PayPal One Touch™ and Smart Payment Buttons.
With Smart Payment Buttons, PayPal intelligently presents the most relevant payment types to your shoppers, automatically, making it easier for them to complete their purchase using methods like Pay with Venmo, PayPal Credit, and even local payment types for global shoppers.
PayPal OneTouch™ lets customers shop from site to site without entering their password or filling out their billing information, so they can pay in just a few taps. It turns a multi-screen checkout into an express lane on most devices. Checkout conversion can be up to 47% better for PayPal versus non-PayPal transactions.3
PayPal Marketing Solutions is designed to help increase your average order value, reduce cart abandonment, and get more customers to and through checkout. Marketing Solutions lets customers know about PayPal Credit and other offers while they are shopping your site.
PayPal Credit4 gives your customers the flexibility to pay for purchases over time, while you get paid in full, up front. It's built into your checkout, so there's nothing you need to do. Plus, there's no extra charge—you just pay your normal PayPal transaction fee.
As you sell products online and implement the recommendations above, always keep the customer’s experience in mind. Customers want a smooth, streamlined process that’s free of unnecessary requests and is easy to navigate.
Lowering cart abandonment rates should be an aim for any online retailer, large or small. We can help you build a better customer experience to increase conversion rates.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.