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BizReport : Email Marketing : February 23, 2011

Listrak: Retailer's aren't correcting cart abandonment issues

Online shoppers abandon carts. The fact has been true since the first ecommerce stores opened. Unfortunately the problem has only grown as more shopping options have appeared on the horizon and, according to a new report from Listrak, online retailers aren't doing enough to curtail the problem - which is losing them sales and revenue each day.

by Kristina Knight

According to Forrester Research the shopping cart abandonment rate is more than 70% - meaning 7 in 10 shopping places items in an online shopping cart and then leave without completing the purchase. Less than 15% of merchants in the Internet Retailer 500 have active shopping cart abandonment campaigns in place, according to experts.

The Listrak report estimates that etailers lose up to $18 billion annually to shopping cart abandonment. Of even more worry is that the number of etailers with active campaigns has decreased. Listrak's research found that 36% of etailers sent personalized emails to cart abandoners in 2009; only 34% do so now. They also report that 45% offered incentives for completing abandoned purchases in 2009 but only 34% do so now.

"The results surprise me: there are still few retailers with a cart abandonment campaign in place and those that do aren't using best practices to optimize the results," said Ross Kramer, Listrak CEO. "Implementing a cart abandonment email series and offering discounted or free shipping can greatly improve conversion rates, and yet the IR500 has largely been slow to adopt these practices."

The study further found:

• 62% of those with remarketing campains send emails within 24 hours of abandonment
• 94% request an email address before taking credit card information
• 95% ask for email information in the first step of the checkout process

*Note: Listrak has updated the survey results to reflect that 94% of businesses ask for email infromation before taking credit card information.

Tags: cart abandonment ads, ecommerce, email marketing, Listrak, shopping cart abandonment

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