How to Reduce Cart Abandonment on Amazon

August 24th, 2022

reduce cart abandonment on amazon

If you’re an ecommerce seller, your definition of cart abandonment issues might be vastly different from the mainstream. In our overstimulated, indecisive culture where “adding to cart” has become somewhat of a competitive sport, getting the commitment-phobic to cross that checkout finish line may be harder than ever before.

What is shopping cart abandonment? How do you reduce cart abandonment on Amazon? It occurs when buyers add items to their cart without ever completing their purchase. Cart abandonment rates are a crucial metric for business owners to monitor, as it directly impacts conversions and revenue. Poor rates may indicate a larger problem. 

The Baynard Institute states that the average cart abandonment rate is 69.57%. Over half of shoppers add a product to cart but do not check out. How do you track and remedy this growing trend? Let’s start with the basics. 

How do I determine my shopping cart abandonment rate?

Getting a handle on your metrics is step 1 to reduce cart abandonment on Amazon. To calculate the cart abandonment rate, divide the number of shoppers that add an item to their shopping cart by the total number of complete transactions. Subtract this value from 1 and multiply by 100. Ta-da! You’ve got a starting point for your strategy to reduce cart abandonment on Amazon. After all, knowledge is power. 

What are the common culprits for shopping cart abandonment?

Once you have your metrics to work with, it’s time to create a strategy to reduce cart abandonment on Amazon or any other platform. This may be a widespread issue for business owners, but the causes can vary. It’s important to understand the source, and adjust your tactics accordingly. So what are some common culprits for cart abandonment?

  1. Shipping costs - Sticker shock at checkout due to high shipping costs can be a dealbreaker for many. Offering low or free shipping options is a must if you want to compete in today’s world.

    Another issue could be transit times. Shoppers are used to having their purchases ship and arrive quickly. Finding more convenient shipping options might be profitable in the long run.

    Fulfillment by Amazon (FBA) helps sellers give shoppers what they are looking for - free and fast shipping. Dive deeper with this Amazon FBA guide.

  2. Poor checkout flow - Having a simple, quick, easy checkout process helps build conversions. Fixing delays, technical problems, and complexities during checkout can reduce cart abandonment.

    If a buyer is forced to create an account in order to complete a sale, this inconvenience may be a dealbreaker. Having guest checkout options and a great checkout flow is always the way to go. Amazon’s ultra-fast “Buy Now” option has become a favored convenience of many.

    Additionally, Amazon is releasing “Buy with Prime” which will give customers the shopping benefits of Prime beyond

  3. Trust issues - Having a strong, reputable brand, social proof, and a great return policy can make shoppers feel more comfortable about sharing their payment information and can reduce cart abandonment on Amazon.

    Optimizing your accounts, building a social media presence, and developing an arsenal of reviews can benefit any brand.

    You may want to take it one step further and reach out to a full-service ecommerce management team to help you establish a noteworthy presence, take your brand to the next level, and reduce cart abandonment on Amazon.

  4. Payment options - Many buyers have strong preferences about how they would like to pay. You can reduce cart abandonment by offering payment options such as Amex, PayPal, and Amazon Pay.

    Column Five’s study has shown that 56% of customers expect a variety of payment options. If a shopper does not have the option of their preferred payment option, they are 20% more likely to forgo their purchase.

  5. Pricing - Everyone wants a great deal, and they are willing to shop around to get one. Offering coupons or discounts keep shoppers engaged and more likely to complete a sale. It can also reduce cart abandonment on Amazon.

    If your price is higher than your competitor’s, use your descriptions to clearly state why. If pricing, taxes, and fees are getting between you snagging that sale, it might be time to reconsider and adjust accordingly.

How do I take matters into my own hands?

While it’s not always possible to determine why shoppers abandon ship (or cart), there are some surefire steps you can take to improve their experience and drive them toward a sale. So, how do you reduce cart abandonment on Amazon?

  • A/B Testing
    A/B testing allows you to make changes and then split your traffic so that visitors are randomly shown either the original version of your listing or the version with your changes. Once you know which version performs better, you can adjust accordingly.

    Amazon offers A/B testing tools that are available to any ecommerce seller. These four tools can help you carry out an Amazon A/B test. The first three gather data from customers who browse your products. The fourth helps you choose the titles, images, and descriptions customers like best before you go live with your product.

  • Create Great Content
    Developing strong titles, bullets, and product descriptions can have a huge impact. Many shoppers abandon their carts due to mistrust and uncertainty. Since online shoppers can’t experience your products in person, understanding the features and benefits may be an important part of pulling the trigger.

    Not sure where to start? Enlist a professional. Having great content (such as copy, photos, and videos) is a major draw for shoppers and adds legitimacy to your brand.

  • Be Transparent
    Being clear and honest about what your product does and doesn’t do is crucial to building trust and snagging the sale. Be upfront about prices, taxes, and shipping costs to reduce sales friction and keep shoppers interested.

    Honesty is always the best policy. Having great customer service is also a huge draw. Being polite, thorough, responsive, and helpful sets you apart from other sellers. Answer questions quickly, create a great return policy, and be sympathetic when issues arise. 

  • Develop an Email Strategy
    Shoppers don’t add an item to cart if they aren’t considering buying it. Send your customers a follow-up email notifying them of your product’s popularity and the discounts, pricing, or availability they might miss out on. 64% of customers open their emails based on your subject line. Make the most of this space!

  • Develop a Dynamic Pricing Strategy
    Dynamic pricing utilizes variable prices instead of fixed ones. To ensure that your Amazon prices are appealing to customers, have an SKU-specific pricing strategy for your entire catalog.

    This pricing is based on each individual item, the product performance, the customer behavior on the website, and the inventory level of the warehouse. It combines what we know about our products with market knowledge and insights we have from our product performance.

  • Use Vendor Powered Coupons
    If you’re an individual seller with a Pro Merchant account, a seller, or a vendor, you can use Amazon’s built-in promotion tools, Vendor Powered Coupons. VPCs are digital coupons that allow Amazon customers to get a dollar amount or percentage off the regular price of the product.

    This tactic is known for boosting conversion rates and creating a sense of urgency. 57% of US online shoppers who used a coupon code said that if they had not received the discount, they would not have completed the purchase. If you want to reduce cart abandonment on Amazon, this is a great option for you.

Using Amazon Pinpoint for Abandoned Carts

Amazon Pinpoint is a marketing communications service you can use to reduce cart abandonment on Amazon. You can connect with customers over channels like email, SMS, push, voice, or in-app messaging. It is flexible, simple to set up, and easy to use. Amazon Pinpoint can be used to send targeted messages such as promotions and coupons, or transactional messages such as order confirmations.

When a user of your ecommerce shopping cart adds items to their shopping cart, you can report the “Add To Cart Event” to Amazon Pinpoint. Later, when the user completes their purchase, you can report the “Cart Purchased Event.”  If the “Cart Purchased Event” does not get reported to Amazon Pinpoint within an hour of receiving the “Add To Cart Event,” it can trigger an abandoned shopping cart email to encourage the user to complete the sale.

Easy? Yes. Convenient? Absolutely. Pinpoint just may be the backup you need to reduce cart abandonment on Amazon. Many times a simple reminder can be the difference between an abandoned cart and a completed sale.

Breaking Out the Big Guns

At the end of the day, there are many tools available to help reduce cart abandonment on Amazon. It all starts with getting a grasp of where you can improve and developing a strategy to do just that. If you find yourself struggling to make time for these concerns or are simply overwhelmed by the task at hand, the solution may be to enlist the help of professionals. 

If you’re looking to reduce cart abandonment, expand your outreach, or develop a plan to boost your sales, our team of Amazon selling experts are here to lend a hand. We understand the intricacies of Amazon and can help you realize your goals. Reach out to our ecommerce experts to set up a free consultation. From there you will receive an email to schedule an appointment time that works for you.