Retailers continue to grapple with shopping cart abandonment. A February report by PYMNTS Intelligence and Adobe reveals insights that could help online merchants boost conversion rates and enhance customer loyalty.
The availability of preferred payment methods is a critical factor in consumers’ online shopping decisions. According to the report, 70% of consumers consider the availability of their preferred payment method to be very or extremely influential when choosing an online store. This preference appears to be a driver of cart abandonment rates across online platforms.
Online marketplaces seem to have a competitive edge in this area. The study found that 53% of shoppers believe online marketplaces are the best at offering their preferred payment methods. In contrast, only 22% of consumers hold the same view about brand websites. This disparity may explain why brand websites experience higher cart abandonment rates, with an average of eight abandonments in the last 30 days compared to six on retailers’ sites and seven on online marketplaces.
The data suggests that expanding payment options could be a strategy for reducing cart abandonment, especially for brand websites. Offering a wider array of payment methods could help level the playing field with online marketplaces.
Generational Divide
The report highlights differences in online shopping behavior across generations, particularly when it comes to cart abandonment. Millennials emerge as the generation most likely to abandon their carts, with an average of five abandonments in the past 30 days. Gen Z consumers follow closely behind with four abandonments.
In contrast, baby boomers and seniors averaged fewer than one cart abandonment in the same period. This generational gap suggests that older consumers are more likely to complete purchases when they shop online, while younger consumers may use their carts as wish lists or for price comparisons.
The disparity is even more pronounced in certain product categories. For clothing and accessories, both millennials and Gen Z consumers abandoned an average of two carts in the last 30 days — five times more than baby boomers and seniors.
Understanding these generational differences is crucial for tailoring eCommerce strategies. Retailers need to find ways to convert younger browsers into buyers while maintaining the loyalty of their older customer base.
Platform Preferences VaryÂ
The report also reveals that consumers tend to gravitate toward specific online platforms depending on the type of product they’re purchasing. This behavior suggests that shoppers are strategic in their choice of platform, likely seeking the best deals or most convenient shopping experience for each product category.
For electronics, 48% of consumers prefer online marketplaces, higher than other channels. Similarly, 37% prefer online marketplaces when shopping for home furnishings and appliances. However, preferences are more evenly distributed for clothing and accessories, with 37% favoring online marketplaces, 36% preferring retailers’ websites or apps, and 24% opting for brands’ websites or apps.
Interestingly, when it comes to groceries, 44% of consumers prefer retailers’ websites or apps, indicating a strong preference for established grocery chains.
These findings underscore the importance of a multichannel strategy for retailers. Understanding where customers prefer to shop for specific product categories can help in optimizing marketing efforts and improving the overall shopping experience.
Actionable Insights for Retailers
As online retailers continue to navigate the challenges of cart abandonment, these insights offer direction for refining strategies:
1. Prioritize payment options: Managing multiple payment options can be complex but is crucial for reducing cart abandonment. Retailers should implement technology solutions to simplify this complexity and drive business growth.
2. Address generational differences: Simplifying the payment process could be a strategy for reducing cart abandonment among younger consumers. Prioritizing user-friendly, efficient checkouts can influence consumer decisions and foster greater loyalty.
3. Optimize platform presence: Retailers should tailor their strategies based on product categories and consumer preferences for different platforms. This multichannel approach can help capture sales across various consumer segments.
