We help businesses accept payments online.
Almost 70% of online shopping carts are abandoned, resulting in $18 billion in lost sales annually. Among the many reasons are friction in the checkout process, unnecessary extra steps, limited payment options, and slow load times. However, this loss can be minimized so that even small checkout process changes have a measurable impact on conversion rates.
This article explores the reasons behind abandoned carts and provides practical strategies your business can use to improve checkout conversion rates. We will review how current trends in eCommerce keep customers engaged until checkout and how partnering with payment gateways like Komoju can reduce friction, enhance customer trust, and increase sales.
Why Checkout Conversion Rates Matter
One of the most important stages in the online shopping journey is the checkout process. For eCommerce business owners, checkout conversions are a key performance metric that shows the percentage of customers who start the checkout process and then complete the purchase.
This data is useful as conversion rates directly impact the growth and performance of the company when it comes to:
- Revenue Growth: Higher conversion rates mean fewer lost sales, higher revenues, and increased profits.
- Meeting Customer Expectations: Modern shoppers expect fast, seamless, and secure transactions, and even the smallest friction can lead to cart abandonment.
- Competitive Advantage: A smooth checkout process reduces frustration and increases brand loyalty, giving businesses a competitive edge.
Understanding Why Customers Abandon Their Carts
Despite starting with the intent to buy, nearly 70% of online shopping customers abandon their carts before checkout, resulting in billions in lost sales.
So, why do many customers drop off before completing their purchase? According to a study done by the Baynard Institute, here are the top reasons for cart abandonment.
Reasons for Cart Abandonment | Percentage (%) |
High extra costs (shipping, tax, fees) | 48% |
Being forced to create an account | 26% |
Don’t trust the site with credit card information | 25% |
Slow delivery | 23% |
Long/complicated checkout process | 22% |
Unable to see/calculate total order cost upfront | 21% |
Unsatisfactory returns policies | 18% |
Errors on website/crashes | 17% |
Not enough payment methods | 13% |
Declined credit card | 9% |
Key Abandonment Issues & Solutions
Each of these problems can be proactively addressed to recover lost sales. Below are some key abandonment issues and quick and easy solutions.
Unexpected Costs :
Extra charges like high shipping fees, taxes, or additional charges are a huge reason for cart abandonment, especially when they were unexpected and unknown before checkout.
Quick Fix: Display all costs upfront, offer free shipping, and calculate applicable taxes before checkout.
Being asked to create an account:
Many customers hesitate to share their personal information and create an account when they simply want to complete their purchase.
Quick Fix: Offer a guest checkout option so customers can opt out of creating an account.
Complicated or Lengthy Checkout Process:
When the checkout process has too many form fields, unnecessary steps, or mandatory account creation, shoppers become easily frustrated, and drop-off rates increase.
Quick Fix: Simplify the checkout process, minimizing the required steps.
Limited Payment Options:
Customers prefer familiar and local payment methods and may be discouraged if their preferred option isn’t available.
Quick Fix: Support local and global payment methods and multiple currencies.
Slow or Unresponsive Checkout
Users, especially mobile shoppers, often abandon purchases if the checkout page is slow to load or difficult to navigate.
Quick Fix: Use responsive design to enhance the checkout for mobile users, optimize for speed, and minimize redirects.
Security Concerns
Customers can hesitate to complete the purchase. If they don’t trust the payment security or see a lack of secure payment indicators (SSL, PCI compliance, etc)
Quick Fix: Display security badges (SSL, PCI compliance, use trusted payment providers) and highlight secure payment processes.
Indecisiveness or Distractions
Other times, customers get distracted, rethink their purchase, or decide to shop around before checking out.
Quick Fix: Send automated reminder emails, provide incentives, and use SMS or push notifications for re-engagement.
Long-term Strategies to Improve Checkout Conversion Rates
Understanding the biggest barriers to completing checkout allows you to implement solutions that directly improve conversion rates. Even minor improvements can significantly enhance the customer experience and increase overall sales. These solutions, however, can also be part of a longer-term strategy for sustainable growth.
1. Simplify the Checkout Process:
A long, complicated checkout can be discouraging. Reducing the number of steps in the checkout process increases the likelihood of conversion.
How to streamline checkout:
- Offer guest checkout to remove mandatory account creation.
- Use auto-fill and address lookup to speed up the process and save time.
- Reduce the number of form fields by asking only for essential information.
- Implement a progress indicator to show how many steps are left in the process.
2. Offer Multiple Payment Methods
Customers want to pay using their preferred method.
How to expand payment options:
- Accept various forms of payment, including credit/debit cards, e-wallets, and Buy Now, Pay Later (BNPL) services.
- Offer localized payment options (e.g., Konbini in Japan, iDEAL in Europe, and Alipay in China).
- Allow multi-currency support for cross-border shoppers.
- Use a payment gateway provider like Komoju to make implementation smoother.
3. Optimize for Mobile Users
In 2024, there were approximately 4.88 billion smartphone users worldwide, with mobile devices accounting for over half of online sales. Despite this, mobile conversion rates averaged only 1.82%, signifying an opportunity for eCommerce owners to cater to mobile users.
How to enhance checkout for mobile users:
- Use a responsive design so the checkout page easily adjusts to different screen sizes.
- Use larger buttons with easy-to-tap elements.
- Optimize page speed, as slow load times lead to drop-offs.
- Implement one-click payment options for returning customers.
4. Build Trust with Secure Payments:
If pricing isn’t clear and customers are concerned about checkout security, they may hesitate to enter their payment details.
How to Increase Trust:
- Display security badges (SSL, PCI compliance, and trusted payment provider logos).
- Offer visible payment options that customers trust.
- Use customer reviews and testimonials to build confidence.
5. Be Transparent with Pricing and Policies
If pricing isn’t clear, customers may hesitate at checkout.
How to increase transparency:
- Show return/refund policies upfront to reassure hesitant buyers.
- Make additional costs (shipping, taxes, etc.) clear early in the process.
- Use customer reviews and testimonials to build confidence.
6. Recover Abandoned Carts by Being Proactive:
Abandoned carts and lost sales can be recovered with proactive strategies.
How to recover lost customers:
- Send automated reminder emails with a discount or incentive to complete the purchase.
- Use SMS or push notifications for real-time engagement.
- Offer limited promotions to create urgency.
7. Continuously Test & Optimize Checkout Performance:
Regular testing helps identify pain points and improves the user experience.
How to optimize checkout conversion rates:
- Run A/B tests on checkout layouts, button placements, and form lengths.
- Use data to identify drop-off points.
- Monitor conversion metrics and adjust strategies accordingly.
Current & Future Trends in eCommerce That Enhance Conversions
The eCommerce landscape is constantly changing; therefore, business owners should stay current on changes that can improve conversion rates. Some of the trends to be aware of and look out for include:
Omni-channel Shopping
Omnichannel shopping is a popular eCommerce strategy that integrates online and brick-and-mortar shopping, allowing retailers to reach customers through multiple channels. Whether shopping on a website, social media, or a physical store, customers can choose where to shop and when to complete their purchases. This creates a seamless shopping experience and helps to reduce cart abandonment rates and boost overall sales.
AI Integration
AI and machine learning can use consumers’ behavior to provide customized product recommendations, emails, and website experiences.
Chatbots & Voice Assistants
Pre-built chatbots and voice assistants provide immediate answers, increasing engagement and conversion rates and reducing friction in the buying process. Customers can receive instant support, 24/7, for common questions across websites and social media.
Social Commerce & Influencer Marketing
Customers can shop directly from social media posts, live shopping events, and recommendations from influencers. This provides your business with another way to reach customers.
Augmented Reality (AR) Shopping
Virtual try-ons and 3D product views reduce uncertainty and increase confidence, leading to higher conversion rates.
Fast & Flexible Shipping Options
Platforms like Amazon offer same-day, next-day, or free shipping. This removes hesitation at checkout and decreases the chances of customers abandoning their carts.
How Komoju Can Help Increase Checkout Conversions
Working with a reliable payment gateway provider is essential for any eCommerce business that wants to optimize its checkout process. Payment gateways provide a seamless checkout experience, ensure secure transactions, and support multiple payment methods.
Choosing the right payment gateway is more than just a technical decision. The right provider can help business owners reduce friction while increasing sales and customer satisfaction and facilitating expansion into new markets.
This is where Komoju can help. For over 15 years, Komoju has been working with over 16,000 businesses in over 50 countries to improve their checkout conversions. Designed by “merchants, for merchants” but customer-focused, Komoju helps business owners streamline transactions, support local payment methods, and provide mobile-friendly checkouts. Komoju offers:
Simplified & Flexible Checkout Integration
Komoju offers a pre-built checkout page and API integration, making setup quick and easy for businesses and allowing them to customize the checkout experience for their specific market. Businesses can easily connect the checkout page to their eCommerce store.
Diverse Payment Methods
Whether digital wallets, BNPL, or carrier payments, Komoju recognizes the importance of offering multiple payment options and integrates with various local and international payment methods. This includes popular options in specific regions, such as Konbini payments in Japan or cash vouchers in Korea, allowing you to reach and access a wider customer base.
Support for Cross-Border Transactions
For businesses aiming to expand globally, Komoju facilitates cross-border eCommerce by supporting multiple currencies and localized payment methods. This capability allows merchants to tap into international markets with ease.
Mobile-Friendly Payment Solutions
With the increase in mobile shopping, Komoju’s payment interfaces are responsive and user-friendly on all mobile devices. This focus on mobile optimization reduces friction and helps make payments seamless, leading to higher conversion rates.
Safe & Secure Online Features
Komoju fully complies with international financial and security standards, ensuring customers trust the platform and feel secure about their transactions. Komoju also uses advanced security measures, like SSL encryption and PCI compliance, and security badges are displayed prominently to alleviate concerns about payment safety and encourage customers to complete their purchases.
Final Thoughts
Optimizing the checkout experience is a key factor that businesses can control to turn more visitors into paying customers. To increase conversion rates, it is important to understand and address the biggest causes of cart abandonment: unexpected costs, complicated checkout processes, security concerns, and limited payment options.
Business owners can increase their chances of capturing potential sales by simplifying checkout, offering multiple payment methods, optimizing for mobile, and recovering abandoned carts. Staying ahead of the trends and partnering with a reliable payment provider like Komoju ensures long-term success.
Ready to improve your checkout conversion rates? Start optimizing with Komoju today!
FAQs
In eCommerce, conversion rates refer to the percentage of website visitors who complete a purchase. Specifically, checkout conversion measures the % of visitors that proceed to checkout after adding items to their cart.
Conversion rates are important because they directly impact the revenue and growth of your business. A higher conversion rate means more customers are completing their purchases, which leads to more sales and increased revenue. Optimizing the checkout process and reducing friction helps businesses improve their conversion rates and increase profitability.
Komoju provides merchants with detailed analytics and insights into their payment processes. By tracking key metrics, businesses can identify drop-off points in the checkout flow and use data to make informed decisions that optimize the user experience and increase checkout conversion rates.
Customers abandon their carts for various reasons, some of which include: unexpected costs (shipping, taxes, fees), long or complicated checkout processes, lack of payment options, security concerns, and being forced to create an account. Business owners who understand and address these issues can take actionable steps that significantly reduce abandonment rates.
Abandoned carts can be recovered by proactively reaching out to those customers who have not completed checkout and sending reminder emails, offering discounts, or using SMS or push notifications to re-engage them. Also, creating a sense of urgency with limited-time offers can encourage them to complete their purchase.
We help businesses accept payments online.
