When you use marketing tactics to successfully get someone in your target audience to visit your website, browse your products, and add one of your products to the cart, all signs seem to point to a sure-fire sale, right?
In fact, research shows this is frequently not the case, especially when it comes to businesses that sell products internationally.
Ecommerce merchants across the globe wrestle with the same issue: cart abandonment.
Cart abandonment happens when consumers add an item to their cart and walk away from that cart (or rather, click away) without completing a purchase. While may businesses know how to get consumers to add a product to their cart, many of them struggle to keep these consumers from ditching their cart by checkout.
If you are battling cart abandonment, you are not alone. Across the globe, approximately 70% of consumers leave websites without purchasing the items in their cart. This accounts for an annual loss of over $18 billion in sales revenue for ecommerce businesses around the world.
While this issue is common, you can put a stop to this significant revenue loss by learning about and addressing the top reasons why your international customers are abandoning their carts in the first place.
1. Unexpected shipping costs and fees
One of the main reasons why your customers are not completing their international purchases is because of unexpected shipping costs and fees. According to a study conducted by Baymard Institute, 61% of consumers abandon their carts because of unexpected fees for shipping as well as other costs like taxes and duties.
Cart abandonment is especially troublesome for ecommerce merchants who use Delivered Duty Unpaid (DDU) shipping methods.
With DDU shipping, consumers are on the hook for paying taxes and duties in order to receive their products. This can prove confusing and prevent consumers from knowing exactly how much they will end up paying for a product.
When these customers realize that they have unexpected taxes and duties they need to pay when their product arrives, it is an unwelcome surprise. As a result, some of them end up ditching their international purchases.
In order to combat cart abandonment, you need to make sure your customers are free from worrying that the taxes and duties they will end up paying will be more than expected.
One way you can do this is to work with a shipping provider that use Delivered Duty Paid (DDP) shipping methods.
With DDP shipping, your customers will not be subject to any hidden costs, fees, or taxes and duties before receiving their goods. Customers value transparency, and they want to be able to calculate their total costs upfront, especially when they are shopping online.
When your customers struggle to find an accurate total for their products or they are hit with unexpected fees, they will be hesitant to make purchases from your business.
If you want to keep your customers from choosing to shop with your competitors, you need to let them know exactly what they will need to pay for their products, including all taxes and duties, so that they do not face any unexpected costs.
2. High shipping costs
Today’s consumers want their products quickly, but they also do not want to pay an arm and a leg for shipping. In a time when free-shipping abounds, you need to offer a variety of shipping options for your customers if you want to stay competitive.
Many ecommerce stores offer limited shipping options for their customers. This means that their customers are left with two options: fast shipping at exorbitant prices or slow shipping with more affordable options.
If your ecommerce store sticks to these two shipping options, you might be losing customers who want to pay less money in order to receive their package in a certain delivery window.
Customers today expect to pay reasonable prices for shipping, and they will be turned off from making a purchase when they only see high prices at checkout. Many people who visit your website will leave without buying anything because they are surprised by the price of shipping and fees at the checkout page.
In order to address this cart abandonment, you need to make sure you are providing affordable shipping options for your customers so that they can select the option that best suits their needs.
3. Slow delivery times
With features like next day shipping and even same-day shipping on the rise, the consumer in today’s society is all about instant gratification.
It is no longer acceptable for your business to only offer a two-week delivery time when shipping products internationally. In fact, 24% of consumers cite slow delivery times as a reason why they would avoid making a purchase from another country.
Consumers want the products they order to come as quickly as possible, and it is up to you to make sure that you can offer fast delivery times.
If a customer has a choice between a store that will take more than a week to deliver a product and one that offers delivery within a couple of days, their decision will be a no-brainer. In order to stay competitive, you need to make sure that your customers have shipping options that will allow their products to arrive in the time frame that works best.
4. Concerns about not receiving an item
Another key reason why customers ditch their carts when shopping internationally is out of concern that they might not receive their item. 24% of consumers, especially those who place time-sensitive orders, are often hesitant to order products from other countries because they are afraid that their product will be lost in transit.
If your ecommerce business does not offer tracking, your international customers will be less likely to make a purchase when they get to checkout.
You need to show your customers that your business is reliable and can be trusted to get their parcel from point A to point B without any issues if you want to lower your cart abandonment rate.
The solution to cart abandonment
Tired of seeing your international customers abandon their carts? Zendais the perfect solution.
Zenda is a shipping provider created and powered by British Airways that will help your business combat all the issues that contribute to high cart abandonment rates, allowing you to successfully sell your products to 500 million people in Europe.
Here are a few ways in which Zenda can help you save your international carts from abandonment:
Delivered Duty Paid (DDP) shipping
Zenda uses Delivery Duty Paid (DDP) shipping methods, meaning that all landed costs and taxes and duties are precalculated and paid at checkout. This means that there will be no surprises or unexpected fees your consumers will face when they are trying to receive their goods internationally.
Customers will be more likely to follow through on a purchase because they know that the final price for the product they are ordering is shown and paid at checkout.
Fast delivery times
Zenda is one of the fastest and most reliable shipping services available for businesses that ship products from the United States to Europe. With multiple flights leaving the USA to Europe every day and guaranteed 4 to 8 day delivery, you can ensure that your customers will not abandon their carts due to slow delivery times.
Multiple shipping options
Zenda is 30-50% less expensive than most shipping providers offering express shipping. Zenda has door-to-door delivery with “all-in” pricing, eliminating fees for fuel surcharges and residential delivery.
Because Zenda offers multiple shipping options, you will be able to offer your customers the opportunity to select the shipping speed and cost that works best for their needs.
Zenda offers up to 60 tracking updates so that your customers can track their packages from your warehouse to their front door. Alleviate any worries that their package might not arrive, and you will improve your cart abandonment rate.
Zenda can help your business decrease its cart abandonment rate and increase its revenue. For more information about Zenda and how this affordable shipping provider can help your business with global ecommerce, please contact us!