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Verifying leads before you’ve purchased them, such as with an overreaching IP fraud score, can ensure you only buy quality consumers. But the real question is, how many of these purchase-ready leads will actually make a purchase?

It turns out that your checkout flow has a significant impact on your sales.

By the way, have you ever measured the impact of different checkout flows on your business? Have you ever A/B tested different checkout options? You might be missing out on conversions that could’ve come through if you had a well-optimized checkout page.

Losing customers at the very last moment is painful, but also preventable. By simplifying the checkout flow, ensuring clear visual hierarchy, and adding trust and security signals to the checkout page, you can minimize, if not nullify, bounces at the checkout.

Without any further ado, let’s unwrap the best checkout design strategies in this Design Journal article.

Why customers abandon a shopping cart?

First things first: to optimize the checkout flow, you need to understand why users are abandoning their shopping carts without completing the purchase.

Here, much depends on the industry and the specificities of your business, but there are still some common bottlenecks you can verify and address upfront.

Why customers abandon a shopping cart — Image Source: Envato

Here is why consumers abandon their orders during the checkout process:

Extra costs too high (shipping, tax, fees) – 39%
Delivery is too slow – 21%
The website forced the user to create an account – 19%
The user doesn’t trust the website with their credit card information – 19%
The checkout process is too long and complicated – 18%
The return policy isn’t good – 15%
The website has errors or is crashed – 15%
The user cannot see or calculate the total order cost upfront – 14%
There are not enough payment methods – 10%
The credit card is declined – 8%

What chunk of profits are You missing due to card abandonment?

While most businesses understand the surface-level marketing aspects, such as lead routing with automated lead distribution software, on-page and off-page lead analytics, and real-time lead screening, many are still missing the opportunity to optimize their cart engagement.

In some industries, shopping cart abandonment rates reach a mind-boggling 80%, which means you might be losing the lion’s share of profits. On the bright side, you also have a gigantic room for growth through checkout flow optimization.

Now, let’s try and see how you can fix these issues one by one, increasing engagement rates on your checkout page and, as a result, sales and revenues.

#1. Reducing extra costs: Up to 40% reduction in cart abandonment

It’s no coincidence that extra costs are by far the leading reason for shopping cart abandonment – users dislike unexpected expenses, viewing them as a loss they must incur to proceed with the purchase.

In marketing psychology, this phenomenon is known as loss aversion, and it can be mitigated by clearly disclosing all costs upfront or by including them in the total cost of the service or product in question.

Here are a few strategies to optimize your cashout flow around extra costs:

Provide a detailed cost breakdown beforehand
Integrate real-time cost calculation in the cart page, including shipping and taxes
Offer free shipping for purchases that exceed a minimum order amount

Once done, A/B test your checkout page to determine how the changes impact the cart abandonment rate, purchase rate, and average order value.

Speaking of which, no matter the changes you implement, make sure to test them thoroughly so you can be sure you’ve adopted what actually works.

#2. Speeding up the delivery: Around 20% reduction in cart abandonment

Speeding up the delivery — Image Source: Unsplash

Consumers are getting more impatient, with ever-shortening attention spans. E-commerce giants like Amazon enable consumers to make purchases within seconds and deliver products in days, even to overseas destinations. As a result, consumers are looking for the same speed with smaller companies.

But not only that. Delayed delivery or a lack of delivery options can leave consumers feeling powerless, forcing them to search for quicker alternatives. Even the product itself becomes less desirable, especially with urgent products like medical equipment.

Around 65% of shoppers expect to get their product within 24 hours, whereas around 50% of shoppers expect to get their groceries within 2 hours.

Here are a few solutions to the delivery-associated problems:

Provide clear delivery estimates without overpromising
Offer expedited and express shipping options on top of standard shipping
Highlight quicker shipping options, especially if you can deliver the product the same day

Likewise, ensure that customers are promptly informed of any delays, offering a free cancellation option and incentives for those willing to wait a few extra days.

On your side, consider partnering with local warehouses in your target high-demand locations to reduce delivery times.

#3. Purchases without registration: Up to 20% reduction in cart abandonment

In industries such as finance or insurance, website registration and deanonymization may be legally required. However, many businesses also require users to register before purchasing to collect their data. But that can actually do you more harm than good.

In addition to privacy concerns, some users may be under time pressure or simply unwilling to commit, especially in retail and for certain lower-priced products.

Likewise, they might be shopping on the go or using someone else’s PC – and you surely don’t want to lose these shoppers.

So here’s what you can do:

If you’re not facing legal obligations, just offer guest checkout as an alternative to registration. You may emphasize the advantages of registering on your website – you may even provide a discount for registered users – but please let them decide for themselves whether they want to sign up.

If registration is mandatory for some reason, reduce the number of fields to the necessary minimum and enable autofill options, such as Google Sign-in.

#4. Building trust with users: Up to 20% reduction in cart abandonment

With around 40% of users taking proactive steps to protect their privacy, a lack of trust is one of the major challenges every company must overcome as it gains a foothold in the market. This is particularly important for smaller businesses in high-ticket industries.

Here are a few ways to improve trust with your checkout process:

Ensure your website uses HTTPS and inform users of your encryption technology
Provide as many payment options as possible, including anonymous payments
Display SSL certificates and trust badges near the payment form

One of the most effective workarounds, though, is integrating trusted gateways like PayPal or Apple Pay, which handle card details off-site.

#5. Reducing checkout complexity: Up to 20% reduction in cart abandonment

The rule of thumb is that the choice form should contain 5 to 8 fields – adding more may cause some customers to experience decision fatigue, leading to abandonment of the checkout process. On a similar note, a multi-step checkout process without clear instructions can exacerbate the issue.

Here are some practical steps to make your checkout flow clear and effective:

Minimize the number of fields leading to the final checkout
Use progress indicators so users know where they are in the checkout process
Enable auto-fill so customers can save time on entering their address and payment details

Other things being equal, use a single-page checkout to avoid confusion for customers. Even if you have to add more fields than you’d like, it’s better to locate everything within the same page, while continuously reminding users of their progress.

However, auditing your checkout page and forms for redundant fields is also helpful, even if it initially seems that all current fields are indispensable.

#6. Reasonable return policy: Up to 15% reduction in cart abandonment

With more consumers expecting the items they receive to accurately reflect the specifications, features, and quality promised in the product listing, it’s essential to reassure them that they will be able to return the item and get a refund should it not meet their expectations.

Reasonable return policy — Image Source: Pexels

The current return rate is approximately 7.4%. However, as consumers become more demanding of the products they order, return rates are expected to increase by 1.3% annually until 2029.

Chances are, companies offering reasonable return policies will be able to generate more revenue from customers who would otherwise buy from a competitor that enables refunds.

Here’s how you can increase sales by introducing a favorable return policy:

Offer a free trial period for digital and a “try before you buy” policy for physical products
Offer a personalized return option based on the customer’s location
Display the return terms clearly before payment, like with a “Free 30-Day Returns” link on the checkout page near the final “Place Order” button.

Additionally, ensure that you address the most common return reasons to reduce overall return rates and increase satisfaction rates over time.

#7. Clean website that doesn’t crash: Up to 15% reduction in cart abandonment

It goes without saying that a slow or buggy website can scare away customers, forcing them to seek more reliable options.

The good news is that, with the abundance of no-code website builders, it’s almost a no-brainer to create a quick, responsive, and clean website design that performs well and withstands traffic spikes.

Here’s how you can make sure your website is clean and doesn’t crash:

Additionally, to ensure users feel safe during the checkout process, you might want to use color-coded feedback next to each field.

Likewise, it makes sense to use an uptime monitoring service and implement the required server-side redundancy, ensuring your website remains online regardless of the circumstances.

Target the right leads

At the end of the day, though, no matter how sleek your checkout flow is, you cannot generate sales with the wrong leads.

This is why it’s crucial to synergize the checkout process with the lead nurturing that precedes it and the targeting that occurs at earlier stages in the sales funnel.

Screening your leads before you purchase them is paramount to ensure you’re staying cost-effective with your lead acquisition campaigns.

In this context, automatic IP scoring can be an invaluable tool for your business, helping sieve out low-quality, irrelevant, duplicate, and downright fraudulent leads.

Long gone are the days when you can be successful without a comprehensive marketing strategy. To gain an edge, you must ensure visual and logical consistency across all touchpoints in the user journey funnel, from awareness to decision-making, retention, and possibly re-engagement.

Conclusion

Once the customer journey reaches its final phase – the check process – you want it to run as smoothly as possible, with no bounces and maximum conversions into paying customers.

And you can do it by optimizing your checkout flow to the customers’ needs and wants.

While every business may have a slightly different checkout infrastructure, the rule of thumb is that you should pave the shortest possible checkout path for every customer while instilling a sense of security in them.

In practice, this means offering versatile payment options, utilizing trust signals such as safety certificates, and possibly implementing an unconditional return policy.

Frequently asked questions

What is a checkout flow?

A checkout flow is a step-by-step process that a customer follows on a website to complete the purchase, from clicking the “Checkout” button to placing an order. The smoothness of a checkout flow greatly affects sales, impacting up to half of the purchase decisions.

What are the most effective ways to improve a checkout flow?

The most effective checkout flow improvement strategy is to make the process simple, intuitive, and customizable for customers, allowing them to proceed quickly with their purchase.

It’s essential to offer popular payment options and a clear return policy, ensuring customers are confident in their ability to return the item if it doesn’t meet their expectations.

By how much can a smooth checkout flow reduce shopping cart abandonment rates?

A smooth checkout flow can increase your conversion rate by up to 50% and even more, depending on the current state of your checkout flow. Here are the common reasons for cart abandonment that you can address by optimizing the checkout flow.

Checkout Flow Design Tips to Prevent Cart Abandonment

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Oleksandr Rohovnin

Inspire the next generation of designers

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