How to Avoid Shopping Cart Abandonment in Latin America

Imagine, a customer walks into a store and makes his way through the aisles. He picks up a carton of half percent milk, a loaf of multigrain bread, and a dozen, large Grade A eggs, adding each to his cart. As he gets ready for checkout, he realizes that the milk might be on sale at the store across the street so he puts it back on the shelf. When he approaches the register, the salesgirl takes her sweet time ringing up the two lone items. Finally, she’s done scanning so he looks at the total price. It’s higher than he expected. Why? There’s a $2.50 processing fee for his $5 purchase. Well, that’s annoying. However, his fridge is empty and he doesn’t feel like going through this whole process again somewhere else so he relents and pulls out his card. The girl looks at it and tells him they don’t accept that card. His patience snaps. He abandons his cart, storms out of the store, and goes to the delicious sandwich shop next door for lunch instead.

How likely would this scenario be in reality? Not very much. But online? It happens far too often. For one reason or another, we all walk away from a website after reaching checkout. But what causes our dissatisfaction? Why do we feel less compelled to finish the digital checkout process than in person? Below are the top 3 reasons:

  • Overpriced shipping — Latin Americans are highly sensitive to shipping costs. Domestically, most ecommerce sites offer free shipping with no strings attached. Others offer it with the purchase of a nominal amount ($100 BRL) or for a nominal amount ($10 BRL). According to UPS Pulse of the Online Shopper, 86% of Brazilians are willing to wait an additional two days or more to receive free shipping. In cross border transactions, it is an accepted fact that shipping will take longer in LATAM due to customs. Being accustomed to this, Latin Americans are quite forgiving of longer shipping time — if it is free. In lieu of this, shoppers will seek free shipping with a reasonable minimal purchase. In fact, 92% of buyers will take action to qualify for free shipping, placing additional items in the cart being the most common. AliExpress, the largest international ecommerce merchant in Brazil, can credit its success, in part, to this strategy of offering free shipping. Frequently, customers turn to international websites for cheaper deals. However, expensive shipping will surpass the benefits of the deals. In fact, 58% of Brazilians abandoned their shopping cart because the shipping was too expensive. One way to reduce these rates is to subsidize shipping costs and make up the loss through increased sales.
Before Gmail kindly created the Promotions tab
  • Forced registration — Another huge turn off for shoppers. If a website has only two options (Register Now or Already a Registered User?), it is one of the most likely reasons for buyers to discontinue their shopping experience. Customers know that registering means bracing themselves for unwanted email blasts. Who wants that hassle? Additionally, they often forget which email they originally registered with and don’t want to spend time trying to figure it out. Amongst those who choose to register, many will quit the process without finishing because the form is too long. While some shoppers appreciate the additional Facebook and Twitter login options, a user friendly guest checkout is most highly preferred. Although merchants use registration to enable repeat business, the number one reason a shopper returns to a website is a good first experience. By giving the customer the liberty to check out as a guest and allowing the product or service to speak for itself, the website is more likely to see the customer return and maybe even register the second time around.
Guest checkout with a status bar showing the progression
  • Limited payment options — Consumers don’t have access to the same payment methods worldwide . So when targeting international markets, it is important to offer diverse payment methods. Seventy two percent of Brazilians buyers are looking for payment options besides credit card and 52% of them have abandoned their shopping cart because their preferred payment method was unavailable. And why shouldn’t they? With only 20% of Brazilians having access to an international credit card, it’s really not surprising. Yet, a mere 32% of U.S. based global ecommerce sites accept local currencies. Hence, reduce shopping cart abandonment by offering local payment methods such as the Boleto and OXXO, two types of bank slips available in Brazil and Mexico respectively.

Often times, customers who are “shopping” online have no intention of completing the purchase. In fact, many just use the shopping cart as a wish-list or a way to compare prices. None the less, merchants have the power to convert them into to purchasing customers by following the above practices. To avoid a high rate of shopping cart abandonment in LATAM, find local solutions such as EBANX, a global financial group with Brazilian DNA. We offer customized payment methods on the biggest websites worldwide.

Want to know more about our solutions? Get in touch!

gobig@ebanx.com| EBANX

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