How Lease-to-Own Can Decrease Cart Abandonment
Apr 04, 2022
Shopping Cart Abandonment
In the modern online shopping world, it’s extremely common for consumers to add items to their digital shopping cart — then leave the site, or abandon their items while shopping. As a business owner who relies on shopping follow-through, you’re probably aware that cart abandonment is a common indicator of friction somewhere within the checkout experience.
So, what could those points of friction be? Well, there could be a few different things happening. And while you’ll never fully eliminate cart abandonment, it can be helpful to look at the checkout experience and realize what’s contributing to drop-off so that you can be proactive about optimizing trouble spots. Read on to learn how to convert abandoned carts into sales.
The Five Most Common Reasons for Cart Abandonment
1. A tedious checkout process
Time is valuable! Especially in today’s digital age. Because your customers’ time is so precious, they demand a simple process for checking out. If your e-commerce website or platform has multiple checkout stages and forms to fill out, you run the risk of losing your customers in the process. A long and confusing checkout experience will slow customers down and deter them from shopping with you.
2. Excessive shipping costs
Many customers are ready to check out — and have every intention of doing so — until they realize they forgot to account for the cost of shipping and taxes. These unanticipated charges can cause customers to reevaluate what they were shopping for. Often, they’ll decide that the additional shipping cost means that what they chose to get is no longer worth it to them. In addition, customers can sometimes feel “tricked” by high shipping prices, viewing these late add-ons as a hidden scheme to increase profits on the part of the business. This can hurt how customers view your business.
3. Comparison shopping
Customers are constantly looking for the best deal. That means they’re perpetually evaluating the overall shopping experience and comparing costs between competitors. Sometimes, that means customers will go through the motions of the shopping experience — up until the very last step of payment — to see which brand they should ultimately go with. If a competitor is providing a smoother experience or lower prices, it can mean cart abandonment for your business.
4. An ambiguous return and refund policy
Customers value transparency. And when it comes to that very last moment before making a decision, they demand it. Having ambiguous or nonexistent return and refund policies can make customers second-guess their choices, which could result in cart abandonment.
5. Lack of desirable payment options
Online shoppers value a payment method that’s convenient for them. While some may be willing to accept the default option — which is typically the use of a debit or credit card — others will abandon their cart if you’re unable to support their preferred method. In today’s landscape, cash, credit and debit aren’t the only forms of payments customers have come to expect.
Another Way to Shop
Let’s dive deeper on that last point. One of the most common reasons for cart abandonment is that customers don’t have access to their desired payment options. What that means is, when your business offers only a single way to pay — or too few choices — you’re adding an unnecessary hurdle between you and your customers. Offering additional payment methods can mean the difference between an abandoned cart and a closed deal.
While paying for things with cash and credit is the preferred method for some, the reality is that it just isn’t for others. Offering an alternative payment option that doesn’t require a large upfront cash payment or a credit card isn’t only good for your customers, it makes good business sense. This holds especially true if you’re a retailer that sells big-ticket items like mattresses, electronics, furniture and appliances. If this is the case for you or your business, you should consider adopting alternative forms of payment to appeal to a larger customer base.
The Lease-to-Own Solution
Lease-to-own* is the alternative to financing that allows customers to what they want now by making manageable lease renewal payments with the option to work toward product ownership. Lease-to-own might just be the key to success for your e-commerce business. For those consumers who either don’t have a line of credit or are in bad credit standing, a lease-to-own payment option like Acima can give them access to brands and products they wouldn’t otherwise be able to afford.
How do lease-to-own solutions tie back to cart abandonment? The answer is simple: Lease to own helps convert abandoned carts into sales. And as a business owner, a decrease in cost abandonment means an increase in sales revenue, which drives your business forward.
Acima’s lease-to-own solutions* can unlock consumer shopping power and expand choices for customers who don’t want to use credit or are unable to qualify for traditional financing. If you’re looking to improve sales from your e-commerce site, become an Acima retailer today.