Indian Fintech firm Razorpay notes that cart abandonment makes a “serious dent” in a digital commerce company’s operations. You may ask e-commerce stores, and they will tell you how much it affects their business. And when it comes to stats and data, we can see how it impacts an online business.
Given the time and effort a digital commerce site puts into setting up a website/app and to market its products, cart abandonment can be a serious issue, the Razorpay team writes in a blog post. They also noted that this world has grown technologically, but cart abandonment challenges still remain.
In a digital commerce environment, a customer visits the online store, explores the products, and adds them to their shopping carts, just like a consumer does at a physical store. However, when a customer leaves the online store without buying products because of not being able to pay for items easily, then that can begin to affect a company’s earnings
The unpurchased items remain in the cart, but the customer doesn’t proceed to complete the payment. Or even if they do, they might decide not to buy the products, Razorpay explains.
As noted by the Fintech firm, cart abandonment is “an important aspect to monitor because it is correlated to revenue generation and customer conversion.” Even though cart abandonment doesn’t affect the branding, it is “a pivotal metric to figure out the customer conversion rate, and that’s why it is crucial.”
As mentioned in a blog post, (around) 24% of customers abandon their carts “because they are asked to create an account.” Customers shop from various online stores and create several different accounts. Instead of asking them to open an account every time, it would be “better to have a guest checkout option,” Razorpay noted.
The firm also mentioned that clients may feel exhausted when they are asked “to create accounts in different online stores.” To minimize the effort, guest checkout “can be a good solution, and this is where Razorpay’s Magic Checkout comes in.”
Over 50% of customers shop online, which means if a digital commerce site is not mobile optimized, they are “losing that 50% of customers.”
Razorpay also noted that “just like a customer will not want to visit a physical store that doesn’t label each category of products properly, online customers don’t want to zoom in and out of the screen just to be able to see the whole content of the website.”
The firm added that “any modern e-commerce store can be mobile optimized, and it would be better to make the layout mobile-friendly when designing an online store.”
The company further noted that 18% of customers “abandon their carts when they find the checkout process complicated.” So by minimizing the steps to complete the checkout process, “an online store will increase their chances of customers shopping from them.”
The firm pointed out that we can take advantage of checkout providers like Razorpay “to help them with the checkout process to minimize the steps for their customers.” The idea is “to make the customers invest less effort and time to pay for the items they like.”
The firm added that customers “always prefer a clean design that’s easy to navigate.” Adding a progress bar to tell the customers about the steps they have already completed and the next steps they need to follow will help is always a good idea. The progress bar “can have tabs, such as summary>address>payment.”
This way, customers will “stay well-informed throughout the checkout journey and will have less inclination to abandon their carts.”
Since building a fast, secure, and easy checkout is a complex task, Razorpay is “here with Magic Checkout that takes away the pain of creating a checkout on your own.” They have built it for you so “you don’t have to.”
Magic Checkout: “enhances your chance of increasing sales by 20% by providing a faster, safer, easier, and more rewarding checkout experience.”
Magic Authentication: Magic Checkout “removes the redundancy of creating accounts by enabling one-time OTP and that too just once.” It remembers & “recognizes your customers across businesses and takes away the hassle of creating and remembering passwords and even entering OTP multiple times.”
Magic UI: Magic Checkout “automatically prefills delivery details and information of customers who have shopped previously from Magic Checkout network stores, allowing customers to checkout 50% faster.”
Magic Trust – Razorpay is “a trusted checkout partner for millions of businesses across India, and customers are familiar with the interface we provide.” Furthermore, if the business is a Razorpay Trusted Business, Razorpay Trusted Business badge “gets displayed throughout the checkout experience, giving confidence to the customers.”
Magic Rewards: The coupon codes/discount codes “get listed clearly so that your customers can easily find coupon/discount codes and apply them conveniently to save money.”
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