High Shipping Fees Cause Online Shoppers to Abandon Shopping Carts [6/1/2008]

Many online shoppers abandon shopping carts because of the high cost of shipping, according to a survey by comScore Inc. for PayPal.

To check out such particulars as shipping fees, delivery date and total cost of order, many customers will proceed to checkout. According to the survey, almost fifty percent (48%) of customers reported clicking on the checkout button to find out this information. Less than a third reported that they fully intended to complete the purchase at hand.

Of the reasons given for not completing the purchase, cost was number one. Forty-six percent reported this as a factor; 20% gave “other” as a reason; 19% cited shipping cost; and 16% admitted that they were comparison shopping.

When asked to choose from a list of “very important” reasons why they were abandoning the shopping cart, 43% said shipping charges were too high; 36% reported that the total cost of the order was more than anticipated; and 26% said they were comparison shipping.

More “very important” reasons for shopping card abandonment were: wanted to check out brick-and-mortar stores (22%); inability to contact customer service for further information (16%); and payment option preferred was not offered (22%).

Many consumers surveyed reported that there was nothing the e-tailer could have done that would have led to a completed purchase. Overall, 30% reported shipping costs as a factor. Twenty percent of shoppers on small retail sites and 10% on larger sites cited lower or free shipping could have led to a completed sale. Just under ten percent (8%) said that a discounted price would have made them complete their purchase.

In some enlightening news for internet retailers, more than a third of shoppers who abandoned shopping carts returned to those same retailers to complete a purchase (36% returned to large sites and 37% returned to smaller sites).

According to PayPal, 66% of shopping carts are abandoned before a purchase is made. This is a marked increase from a study done by Forrester Research and Shop.org last year, which put the number at 50%.

The survey was conducted from March 25 to April 18 and included 355 online consumers.

For more insight visit Shopping Portal Marketing Services

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