Decreasing International Shopping Cart Abandonment With Localization
Everyday, global eCommerce merchants experience massive loss in revenue through shopping cart abandonment.
Customer Experience | Logistics | Marketing
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Decreasing International Shopping Cart Abandonment With Localization
Everyday, global eCommerce merchants experience massive loss in revenue through shopping cart abandonment, the process by which a customer adds products to their online cart and leaves the site without making a purchase. As shopping online both domestically and internationally rises in popularity, online retailers can expect cart abandonment rates to increase in the next few years. With the right tactics, however, it’s estimated that 63% of the $4 trillion of merchandise left in abandoned carts is recoverable.1 To decrease cart abandonment, retailers need to localize information for the international shopper. With Borderlinx’s cross-border solution, Go.Borderlinx®, retailers can seamlessly integrate localization services into their eCommerce websites, saving valuable resources and money. What information can be localized? Preventing cart abandonment involves optimizing the online shopping experience through localization. For international customers, this is done simply by delivering relevant information in highly visible locations and ensuring customers have all the information they need.2 In addition to clearly displaying countries where shipping is offered, retailers should provide the following four necessary localization services, made possible with Go.Borderlinx®.
1. Automated currency conversion. In 2012, 13% of cart abandonment rates occurred because prices were not displayed in the local currency.3 Currency rates fluctuate daily, but with Go.Borderlinx®, retailers can provide shoppers with reliable currency conversions, even as rates change.
2. Total landed cost. International customers need accurate fee calculations, including
shipping fees, taxes and duties, as early in the shopping process as possible. Providing shoppers with total landed cost creates pricing transparency and directly reduces cart abandonment rates.
3. Multiple payment options. Customers are more likely to purchase an item when their
preferred payment option is available to them. Borderlinx partners with the leading global payment facilitators to provide shoppers with the flexibility they desire at checkout.
4. Real-time customs compliance. Product restrictions vary by country. Prevent shopping
cart abandonment by notifying customers of prohibited items well ahead of time.
5. International return support. Customers feel more confident in making purchases when a return policy is easily located and clearly defined. With Borderlinx, retailers have the support they need to make streamlined international returns possible.
A bonus outcome of localizing pricing and purchasing details is that retailers can establish the customer’s trust, a critical component shoppers need to complete purchases online.4 With these strategies in place, overall cart abandonment rates will decrease. 1 Business Insider UK, “Shopping cart abandonment: online retailers' biggest headache is actually a huge opportunity.” 2 Hostway.com, “Ten Ways to Reduce Shopping Cart Abandonment.” 3 Statista, “Why do online shoppers leave without paying?” 4 Technology Innovation and Industrial Management Conference, “Shopping Cart Abandonment: A Comparison between American and Taiwanese Perspectives.”
A total landed cost model benefits both customers and cross-border retailers Total landed cost is the complete price of a product after it has arrived at its final destination. This amount is the sum of the product price (cost + profit) and all additional fees associated with sending the item to the customer. Additional fees include transportation costs, duties, insurance, customs, currency conversion, packaging, handling, etc. As explained, providing customers with total landed cost is crucial in creating a localized experience. For the retailer, a total landed cost model creates a better understanding of the fees involved with shipping to individual markets and helps in choosing the most cost-effective operational methods. Despite these benefits, cross-border retailers cannot always calculate a total landed cost model on their own for reasons such as lack of resources, time and data.5 Merchants struggle to know which data points to include in the calculation and how far back into the supply chain to look for information. That’s where Borderlinx can help. Partnering With Borderlinx The Go.Borderlinx® solution removes the need for online retailers to mine data on customs, duties, transport costs and taxes for each individual product. This means online retailers can avoid pouring resources into establishing new systems. Furthermore, Borderlinx acts as a white label service provider, handling all insurance and customs documentation, cost calculations and shipping logistics. With help from Borderlinx, retailers can decrease cart abandonment rates by providing accurate pricing, offering a streamlined shopping and checkout process.
Borderlinx and the Go.Borderlinx® Solution
Borderlinx, a global eCommerce solution provider, empowers retailers to reach new markets abroad by leveraging Go.Borderlinx®, a SaaS (software as a service) solution. With a simple integration, retailers can seamlessly expand internationally without having to invest in accounting, IT or other costly infrastructure. Go.Borderlinx® not only allows retailers to provide international shoppers with guaranteed total landed cost, but it also removes the challenges of maintaining a consistent customer experience across all markets by acting as an invisible partner.
Our team of cross-border specialists can help eCommerce professionals expand their online business abroad. Learn more about Borderlinx’s flexible solution and how it can take online business global at go.borderlinx.com.
5 Georgia Tech Supply Chain & Logistics Institute, “15th Annual Third-Party Logistics Study Examines the Global Market for 3PL Services.”
