Ecommerce Companies Losing Money Because 45% of Indians ‘Ditch’ Their Shopping Cart: SAP Study
The SAP Consumer Propensity Study focusing on online shopping behaviour found that this is because they use online shopping carts to compare prices of similar products with no intention to purchase.BY Indian Retailer Bureau | Aug 28, 2018 | comments ( 0 ) |
According to new research from SAP,more than half (56%) of Indian shoppers ditch their online shopping carts sometimesor all the time. The SAP Consumer Propensity Study focusing on online shopping behaviour found that this isbecause they use online shopping carts to compare prices of similar products with no intention to purchase (45%). They also stop short of clicking ‘purchase’ as they are put off from higher than expected shipping costs (54%), or face issues with out-of-stock items (42%).
1,000 consumers in India were surveyed on their behaviour at checkout stage and motivations to complete the purchase, with the results revealing that Indian consumers tend to procrastinate when making online purchases.Almost a third of Indian consumers surveyed are also more likely to leave their items in the shopping cart for more than a week and have a higher tendency to forget about their intended purchases, with close to a third (32%) forgetting about the items in their carts, as compared to a fifth (21%) in other APAC countries.
“The e-commerce journey is not a linear path, with multiple factors and touchpoints influencing purchase behaviour.Cart abandonment data such as items selected and discarded, navigation steps, amongst others,provides a valuable trove of insights for retailers to identify friction points, map out the consumer journey, and make improvements to the overall purchasing experience”, saidKrishnan Chatterjee,Chief Customer Officer and Head of Marketing, Indian Subcontinent, SAP.
Prices are the main driver, with Indian consumers indicating that promotions (54%) and discounts (44%) succeed in nudging them to complete the purchase. However, they also appreciate an individualised shopping experience. They aremotivated to buy whenever the brand demonstrates a full understanding of their shopping history (41%), and when prompted by reminders about their ‘forgotten’ carts (31%).
There are many options for retailers to remove the friction and entice follow-through on the purchase.For example, giving visibility of shipping and tax prices sooner, providing assistance via a pop-up chat window if a shopper seems stuck, retargeting to get consumers to visit again, sending reminders if they left something in the cart, or following up with a special promotional code.
Brands and retailers cannot rely solely on competitive pricingor discounts. Since stock availability is a huge barrier to purchase, retailers in India need to be conscious that their supply chain and logistics decisions directly impact sales. Integrating back-office systems into e-commerce systems and tools providing real-time visibility of stock availability online and in stores, different stock options, and delivery options and timelines, will encourage customers to complete transactions.
The study reveals other ways Indian consumers wish for brands to enhance their shopping experience.
“Deploying the latest customer applications and technologies might seem to be the silver bullet to drive purchase and retention,but what the results really tell us is thatIndian consumers wantonlineshopping experiences that are personalised, catered to their individual needs and lifestyles.This extends to ongoing service and support throughout their consumer journey. To achieve this, brands need a robust omnichannel approach based on having an overview of each customer across all touchpoints at all times, and advanced analytics to anticipate customer behaviours and understand their real-time intent. With this in place, brands will be able to provide a personalised and responsive consumer experience before and after the checkout process,” added Chatterjee.
- More than half, (56%) of Indian shoppers ditch their online shopping carts sometimes or all the time
- Almost a third of Indian consumers are more likely to leave their items in the shopping cart for more than a week and have a higher tendency to forget about their intended purchases
- Prices are the main drivers in completing purchases: promotions (54%) and discounts (44%) succeed in nudging consumers to complete the purchase
E-commerce industry to
The e-commerce market in the country will be about $ 70 billion by 2020 and players will be