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Tag Archives: online shopping
Why Do Online Shoppers Abandon Purchases?
A new survey released this past week revealed that nearly half of online shoppers have abandoned their carts multiple times in the past three weeks due to high shipping costs, security concerns and lack of convenience. The average cost of abandoned goods in U.S. shopping carts is $109. This data was supplied by PayPal.
Image by Getty Images via Daylife
High shipping costs was cited as the largest single reason for cart abandonment. While nothing could have prevented one-third of shoppers from abandoning purchases, the survey found that providing shipping costs up-front might have caused 40 percent to complete the purchase. To help merchants encourage shoppers to purchase, PayPal today announced a new Express Checkout feature – the PayPal Instant Update API. By integrating the new API, merchants can show order details earlier in the process including shipping options, insurance choices and tax totals.
“To get shoppers to buy, it’s critical merchants make the checkout experience easy and costs transparent,” said Eddie Davis, senior director of SMB merchant services, PayPal. “Our new PayPal Instant Update API will help merchants get customers the information they need up-front to drive sales.”
The survey also uncovered signs that the economy still has shoppers wary about clicking the “purchase” button. More than one-third of respondents abandoned checkout because they didn’t plan for all of the expenses; while more than 25 percent left the site to search for a coupon. However, one-third of shoppers later returned to the same site to buy. An additional 20 percent purchased the items at a brick and mortar store or competitor’s Web site.