Why do people abandon their online carts?

 

Research tells us that ~ 70% of online shopping carts are abandoned.  (Dopson, 2021)

 

Wow.  That's higher than I thought it would be. 

 

The question is why?

 

According to recent research from the Baymard Institute, the top five reasons are:

·         Extra costs too high (55%)

·         Account is required (34%)

·         Checkout is too long (26%)

·         Unclear pricing (21%)

·         Don't trust the site (17%)

 

I have to wonder why anyone would put something in a cart in the first place if they thought the site was untrustworthy.

 

But I also can't help noticing how rational these reasons are when we know that all purchase decisions are emotional.

 

So what are the real reasons people abandon their carts?

 

One thought is that perhaps they never intended to buy the items in the first place and were merely fantasizing about what they would buy if they could afford to. 

 

Or maybe putting stuff in their carts is just a new hobby - a way to fight quarantine fatigue.

 

But they could just be too anxious to complete the transaction even though they initially intended to. (Schultz, 2021)

 

What do you think?  Why do people abandon their online carts?  Why do you?

 

 

Dopson, E. (2021, June 23) 30+ Shopping Cart Abandonment Statistics (and Strategies for Recouping Lost Sales)  shopify.com.  Retrieved November 24, 2021, from https://www.shopify.com/blog/shopping-cart-abandonment

 

Schultz, R. (2021, November 22)  Fear of Checkout: Emotional Reasons For Cart Abandonment.  mediapost.com.  Retrieved November 23, 2021, from  https://www.mediapost.com/publications/article/368881/fear-of-checkout-emotional-reasons-for-cart-aband.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=124390&hashid=NP_mYr1corR1rsVdWTtA9zohHug

 

 

Is an instant online purchase in your future?

 

In China, shopping webcasts - short videos featuring social media personalities that both inform about products and facilitate instant purchases, have taken off.

In the U.S. people watch an informational video on YouTube and then go to Amazon to buy the product.

But, that may all be about to change as social media channels have begun to focus on selling stuff.  Soon you will be able to watch that makeup tutorial video on YouTube and then buy eyeliner directly from the site. (Ovide, 2021)

Hmm.  That sounds like QVC to me.

Same idea, different medium.

Last month, Dotdash bought Meredith Publications.  Prior to the purchase, DotDash had 14 online publications including Serious Eats, TripSavvy, Investopedia, Verywell Health and Lifewire.

Now they have added print powerhouses including People, Better Homes & Gardens and Food & Wine, to their portfolio.  People and BH&G both reach over three million paid subscribers and Dotdash projects the addition of them and the other Meredith publications to their portfolio will increase their reach to 180 million readers a month. (Tracy, 2021)

They intend to let the print versions of the magazines die out gracefully while they migrate content and audiences online.

Which brings us to Tik Tok.  The job hunting advice on Tik Tok is no different from that carried in traditional channels - magazines, newspapers, blogs, etc.  What is different is the person providing the information and the medium it is presented in. (Dill, 2021)

The question is are consumers driving these changes or are the companies?

Do you buy products or services on mobile.  Which ones and why?  Does instant purchasing appeal to you?  Why or why not?  How do you think others feel?  Have you ever heard of QVC? 

Have you read any of Dotdash's online publications?  How about any of Meredith's magazines? Will you read People online or off?

Finally, do you go on Tik Tok for advice - job hunting or otherwise?  If not, where do you go?

 

Ovide, S. (2021, November 15)  Why the Internet Is Turning Into QVC.  nytimes.com.  Retrieved November 16, 2021, from  https://www.nytimes.com/2021/11/11/technology/social-media-youtube-shopping-destinations.html

 

Tracy, M. (2021, November 15)  People Magazine Heads to New Ownership Again.  nytimes.com.  retrieved November 16, from https://www.nytimes.com/2021/11/15/business/media/people-magazine-dotdash-meredith.html

 

Dill, K. (2021, May 20)  Gen Z Gets Career Advice, One Tik Tok at a Time.  wsj.com.  Retrieved November 16, 2021 , from https://www.wsj.com/articles/gen-z-gets-career-advice-one-tiktok-at-a-time-11621526403

 

It's not an office, it's a talent hub.

As the pandemic continues to disrupt our lives, many of us are eager to get back to our offices, others, not so much.  It doesn't help that there's still a need for masking and social distancing at the office.  It kind of takes the fun out of those water cooler moments that everyone has been missing.

But, a survey last spring by the Harvard Business school found that 27% of workers want to continue working remotely full time.

The majority of workers - 61% - would prefer a hybrid schedule, going in to the office 2-3 days a week.

Not surprisingly, the 18% who want to go back full time are more likely to be married and more likely to have kids. (Reichert, 2021)

CEO's on the other hand want their employees back full time.  No surprise there.

But in the face of "The Big Resignation" companies are trying all sorts of ways to lure employees back.

Doner agency has decided that rather than opening an office in Chicago they will launch a new Chicago "talent hub."  (Whitman, 2021))

Well, words do matter.  Just ask Meta.

Solutions from other companies include:

·         JBS USA Holdings Inc.  - helping to build homes for employees to buy.

·         Levi Strauss & Co. - free computer coding classes

·         Target, Walmart, & Amazon - helping to pay for college tuition and books

·         project44 - a company-subsidized van - complete with a bed, toilet, shower and wifi so they can combine work with family road trips

But perhaps the most interesting perk is the one being offered by David's Bridal LLC. 

During the pandemic the company had trouble getting access to professional models for photo shoots so it turned to its 11,000 employees.  Staffers volunteered to take photos of themselves in clothing from the chain and posted the photos on social media. 

About 300 people have participated so far, and employee satisfaction is up +20% compared with pre-Covid levels.  The company also says that almost all of its workers who were furloughed during lockdown have returned. (Kapner & Cutter, 2021)

Is a Talent Hub just an office by another name?  Why do you think modeling was such a hit for David's bridal?  Do you think any of the other incentives will be successful?  Which ones and why?  Have you heard of any other incentives that you think will work?  Can you think of any that should be tried?

 

Reichert, C. (2021, March 25)  Over 80% of workers don't want to go back to the office full time, survey finds  cnet.com  Retrieved November 8, 2021, from  https://www.cnet.com/health/over-80-of-workers-dont-want-to-go-back-to-the-office-full-time-survey-finds/

Whitman, R. (2021, November 4)  Don't Call It An Office: Doner Opens Chicago 'Talent Hub'.  mediapost.com.  Retrieved November 8, 2021, from https://www.mediapost.com/publications/article/368416/dont-call-it-an-office-doner-opens-chicago-tale.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=124207&hashid=pWUJIUyQGMyJVccRQy8fKxuJEXY

Kapner, S. & Cutter, C. (2021, November 4)  When Bonuses and Raises Aren't Enough, Try Manicures and Free Clothes. wsj.com.  Retrieved November 8, 2021, from https://www.wsj.com/articles/when-bonuses-and-raises-arent-enough-try-manicures-and-free-clothes-11635949795