With the rising e-commerce trend in India the trend of abandoning the shopping cart is also rising and stats are shockingly high. The current cart drop-out rate lies somewhere between 60-70 percent which means for every 100 customers only 30 customers actually end up buying the product.
Cart and the customer
Talking in terms of tangible/physical shopping experience once customer enters the shopping mart the first priority is to get the shopping cart. Once the task has been completed, the customer takes the liberty of moving down the various aisles of the shopping mart to collect the items and products which are required by him. Once the customer has collected all the necessary items in the cart it’s now time to move to the checkout counter.
This experience is same as what one do in e-commerce shopping mart. In fact, these real life shopping marts are the main source of inspiration of online e-commerce stores with a difference that all the steps and experiences have been digitized in the case of online shopping.
Now consider the case where customer collect all the items needed by him, put them in a cart and then walk out of the store. This phenomenon came to be known as cart abandonment and it is hurting and haunting the e-commerce stores across the globe.
India is closely related to cart abandonment
The phenomenon is on the rise across the globe but since, India is the only supermarket left to capture in terms of online shopping it is being seen as the biggest culprit in this phenomenon. Stats suggest that the current abandonment rate lies somewhere between 60-70 percent which means that out of every 100 people who visit and fill their carts only 30 actually buy the products they intended to. And majority of customers prefer to pay via Cash-on-Delivery which is another reason for loss of revenue among all e-commerce portals.
This trend is raising alarms given the number of different options available in India for making the online payment. So, why such trends are rising enabling shocking behavior from customers?
Understanding the cart abandonment
In order to understand the cart abandonment let us see what drives this phenomenon in real store.
Large check-out lines at the counters is a major cause of cart abandonment in stores. Additionally, excessive time taken by the person at the counter and the availability of fewer options to pay the bill are some of the reasons which cause customer to leave without having the buy they intended to.
The factors are same when we move to the digital ecosystem.
• While there is more than sufficient number of options available to pay the money online in India ranging from credit/debit cards, POS, mobile wallets all of them requires to access the payment gateway in order to debit the money from the account The only exception is mobile wallet.
• This has led to the country’s ecommerce to depend heavily on payment gateways. Sometimes customer shopping online also found the payments methods to be restricted as a particular portal will only accept the payment from such and such bank in terms of credit and debit card.
• Another annoyance is the multi-step verification procedures. Users have to go through them even when that are purchasing from their personal devices. Every time they want to make a transaction they have check for the unique OTP on their mobiles.
So, now consider the customer going through all these hurdles to make a payment just to find out that the transaction has failed with no specification of the reason and in worse cases sometimes the amount get deducted from the account and get stuck in the gateway and is never received by the vendor which leads to automatic cancellation of the order and refunding alone takes 7-10 business day from the date of transaction.
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Since, mobile wallets are still not so popular there is a need to develop cutting edge technologies in payment gateways so that the burden can be taken off of the customer. Good payment gateways are equally important to customers as they are for the vendors. Lack of technology is creating nuisance for the customers and hence the phenomenon of cart abandonment.