Cart abandonment, a key element of increasing online conversion, poses a significant challenge for online marketplaces, retailer and brand sites. This issue is increasingly worrisome as budget-conscious shoppers use carts as wish lists while searching for better deals. Online businesses use various strategies to try to entice shoppers to become customers. The answer to boosting conversions may be as simple as offering the right payment options.
Data shows that 70% of consumers consider the availability of their preferred payment method very or extremely influential when choosing which online store to purchase from. Online marketplaces lead in payment selection, with 53% of shoppers saying marketplaces do better than other platforms.
These are some findings detailed in “How Preferred Payment Availability Can Reduce Cart Abandonment,” a PYMNTS Intelligence and Adobe collaboration. This report explores U.S. consumers’ shopping preferences when purchasing online and how these preferences drive engagement. We surveyed 3,521 U.S. consumers between Oct. 10, 2023, and Oct. 17, 2023, to examine and analyze their actions, choices and behaviors when shopping online.
Other key findings from the report include the following:
Merchants offering preferred payment methods see lower cart abandonment.
Cart abandonment occurs across all types of online merchants, but it is significantly more prevalent on brands’ sites. Data shows consumers abandoned more carts when shopping on brands’ sites than on retailers’ sites or online marketplaces. This suggests shoppers may browse brand sites for product information and pricing before turning to other platforms.
Generational differences are in play with cart abandonment rates.
Providing a frictionless payment experience helps increase the likelihood that online shoppers will complete their purchases. In addition, merchants must be aware of generational differences in cart abandonment rates. For instance, millennials lead in cart abandonment, abandoning an average of five carts in the past 30 days, followed by Gen Z consumers at four.
Consumers’ online shopping preferences suggest they shop where they can find deals.
Price is a clear sales driver, but PYMNTS research found that consumers flock to where they can find deals. For instance, 48% of consumers prefer to buy electronics on online marketplaces, a share significantly higher than seen among other channels. Thirty-seven percent also prefer online marketplaces for home furnishings and appliances. Meanwhile, 44% of consumers prefer to shop directly on retailers’ sites compared to 29% who prefer online marketplaces and 24% who prefer brands’ sites.
By prioritizing user-friendly, seamless checkouts with a variety of payment methods, online shopping platforms can close the cart abandonment gap and foster greater loyalty. Download the report to learn more about the connection between preferred payment availability and cart abandonment.
