According to research by Baymard Institute on the best ways to improve online shopping, 67.45% of ecommerce shopping carts get abandoned. This means that out of every 100 customers, 67 customers will leave your ecommerce portal without making a purchase.
Baymard’s study is critical because it’s a collection of 22 different studies containing statistics of e-commerce shopping cart abandonment. Their number is the average of those 22 studies. Some sources report a much higher abandonment rate – as high as 80.3%!
Artificial Intelligence is playing a major role in ecommerce today. You might have already read about smart search. If you have not read about it yet, please visit this page. But before we discuss abandoned cart management with the help of artificial intelligence, let’s understand this key terminology first.
What is an abandoned cart?
In simple terms, abandoned cart is a cart where the user selects and adds items but abandons it without checking out. The user visits the ecommerce portal, browses some products, selected product(s), added them to cart, either moved to next step(s) or with moving ahead to complete the checkout process until order submission, left the portal or closed the browser.
As a business user, this scenario raises following questions:
- Why didn’t the user checkout?
- Did the user not like the product or the price?
- Did the user face any issues in checkout?
- Was the user lured by another choice/offer by a competitor?
- Was the user unable to find the payment option of his choice?
- Did the user have any issues with the delivery method or speed?
And there are many more if we keep guessing. So, what do we do about it? Some ecommerce platforms provide tools and techniques to capture these abandoned cart details. At a certain point of time when there is a price drop in the items, ‘abandoned cart emails’ are automatically triggered to users who abandoned their carts shopping earlier. There are already a few ecommerce platforms with capabilities to learn about the user over time, understand user likes and dislikes, and interested categories of products, etc. This can greatly help in triggering or pushing specific products or content to specific groups of customers.
These tools and techniques can help you address abandoned cart management, but to more precisely understand why users are not checking out and why conversions are not happening, you need more advanced applications of artificial intelligence. We believe these are the areas where “Artificial Intelligence” or “AI” can play a big role.
We at TA Digital strongly believe that Artificial Intelligence can help to identify and analyze abandoned cart issues and greatly help you achieve better revenue. We have an innovation team working on AI using Python to research and develop ecommerce solution for our customers.
TA Digital has already designed solutions for their customers using Artificial Intelligence. Our customers are making better revenue using these solutions. Please go through the below links for more details.
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