E Commerce Issues

As the owner of an online surfing gear store, I’ve noticed that the majority of customers abandon their orders at the checkout stage. This means that shoppers add things to their shopping carts but do not complete the checkout process. The causes for abandonment range from a sophisticated online industry to e-commerce retailer issues. Any of the reasons why consumers can not complete their orders, as well as their alternatives, are as follows:

A high shipping fee is one of the most important causes for cart abandonment in e-commerce. When most consumers know that delivery is not free, they are likely to cancel their order (Hawknis, Mothersbaugh & Mookerjee, 2011). Shipping costs together with the cost of products make the total expenditure of a customer high which is quite discouraging.

Solution: More than half of online retailers offer free shipping, hence the business also needs to offer free shipping services. Offering free shipping is often attractive and acts as a gesture of saying thank you to customers for doing business with the retailer.

Comparison Shopping

According to Gao (2005), online shoppers have today become savvier due to the wealth of consumer resources available as well as the presence of social media. The availability of these resources and platforms has made customers compare the products from different merchants before they can buy. The online comparison websites have made things easier particularly in the shaky economy where everyone is trying to save.

Solution: If the customers are using the website of the surfing gear business to compare prices, then they should be offered a value proposition that will convince them to buy (Hawknis, Mothersbaugh & Mookerjee, 2011). For instance, the customers can be offered a pop up box that offers the free shipping only if they purchase on that date. In addition, the business can also use cookies to study the behavior of consumers and provide better value.

High Product Price

Most consumers have switched to online shopping not only because of convenience but also because they expect prices to be lower. In the event that the items of an online retailer are expensive compared to other online merchants and stores, then the rate of shopping cart abandonment is likely to be high (Gao, 2005).

Solution: The online retailer should check the prices of competitors and see how they compare against the business. In case the product price is too high, the retailer can reduce it or find a way to make it work. Perhaps, the retailer can offer free packaging or next-day shipping. The most important thing is that the high price should be justified.

Long Checkout Process

The question that comes to mind is the number of steps that customers undergo to reach checkout. Some checkout processes are frustrating and tedious, making customers to give up before purchasing (Gao, 2005).

Solution: The key to improving conversions online is by simplicity. Any online retailer should ensure that the shopping experience is straightforward and easy. Importantly, the checkout process should consist of product selection, cart and check out (Hawknis, Mothersbaugh & Mookerjee, 2011). The conversions will become better as long as the checkout process is simple. However, in the case of sophisticated customers, other checkout processes could be developed.

References

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Gao, Y. (2005). Web systems design and online consumer behavior. Hershey PA: Idea Group Pub.

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Hawknis, D. I., Mothersbaugh, D. L., & Mookerjee, A. (2011). Consumer behavior: Building marketing strategy. New Delhi: Tata McGraw Hill.

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