E-commerce business owners will be familiar with the phenomenon of shopping cart abandonment, according to an article by Otimizely, it means that users have placed items into their shopping cart but fail to continue or complete the checkout process. While some level of shopping cart abandonment can be expected, high cart abandonment rates can lead to high bounce rates, and reflect future negative trends in your sales or customer retention.
Over time, e-commerce giants such as Zalora have fine-tuned their business strategy to improve cart abandonment rates, decrease bounce rates, retain customers, and optimise sales. Here are some notable methods used by Zalora to reduce cart abandonment rates:
One of the ways Zalora sets itself apart from competitors is through personalised cart abandonment reminder messages and emails. If a customer exits the website without checking out the items in their cart, Zalora follows up with an email sent directly to the customer’s inbox reminding them of the items that are still in their shopping cart.
Phrases such as “Forget something?” or “We want you to come back!” are included in the email body to add a casual and conversational tone to the message, inviting customers to re-open their cart without being overly aggressive.
Zalora is famous amongst online shoppers for its many discounts and price reductions offered on-site and through email marketing. Different discount codes are offered to both first-time and returning customers. At times, these come with added benefits such as free shipping or discounts on items that are already in the customer’s abandoned shopping cart. This creates a sense of “Fear Of Missing Out” (FOMO) and urgency for the customer and entices them to reopen the website and finish the transaction.
A major reason for Zalora’s popularity is its no-questions-asked free return policy, which allows items to be returned, exchanged, or refunded in a period of up to 30 days. The 30-day return policy is even stated right under the product description for increased visibility. Customers who may have been feeling hesitant about a purchase can continue to checkout without any worries, lowering the bounce rate and reducing the chance of cart abandonment.
Full details of the return policy is laid out in an informative yet concise manner on Zalora’s website. Customers can find a checklist of criteria for returned items, country-specific return instructions, and an exchange or return timeframe. This makes the return process fuss-free for customers, making them more willing to shop at Zalora compared to other platforms with a complicated or opaque return process.
One reason why customers abandon their shopping carts is because the e-commerce platform does not offer a payment method that suits their needs. To resolve this, Zalora offers a wide range of payment options for customers, including cash on delivery, online banking, and ‘buy now pay later’ instalments like hoolah. This incentivises customers to finish the purchase and remain on the site, reducing the bounce rate.
Lowering your shopping cart abandonment rate can help to improve your bounce rate, increase customer satisfaction, and positively impact sales conversion rates for your e-commerce business. Examining success stories such as Zalora is a good way to gain insight into how to retain customers and boost your e-commerce sales, helping you to optimise your business journey.