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BizReport : Ecommerce archives : May 17, 2011

Listrak taps Magento for cart abandonment solution

With online shoppers abandoning shopping carts at increasingly high rates, etailers are looking for ways to stem the flood. A new partnership between Listrak and Magento's e-commerce platform is one solution. Through the partnership Magento will integrate a Listrak extension so that merchants can recoup some of that lost revenue.

by Kristina Knight

listrak.jpgListrak's Magento Extension begins with an automated email response to abandoned shopping carts. When a cart is abandoned, an email is sent to the customer, including promotional offers to get them to return to the store, customized, personalized messaging, split testing, merchandised content and click or conversion tracking.

"We are committed to helping online retailers drive sales; and with shopping cart abandonment costing retailers more than $18 billion annually, our partnership with Magento allows us to provide a fully integrated solution that immediately impacts the merchants' revenue stream," said Ross Kramer, Listrak CEO. "Our solutions provide more ways for retailers to drive business and engage their customers to increase lifetime value."

Most experts believe shopping carts are abandoned because shoppers aren't ready to complete a purchase, whether because they wish to compare prices or simply need to wait until pay day. Some are also frustrated with the check-out process. Whatever the reason, the ability to re-engage shoppers more quickly should help e-tailers in the long run.

According to a recent Forrester Research report about 70% of online shopping carts are abandoned, resulting in about $18 billion in lost revenue. In Q4 2010, ecommerce reached a record sales number of $44 billion; the total ecommerce spend increased by nearly 10% for the year. In Q1 2011, e-tail sales increased by 12% according to comScore numbers (via MarketingCharts) to reach $38 billion.

Having a solution in place to contact shopping cart abandoners should help online retailers better convert these shoppers and increase revenue.

Tags: cart abandonment solution, ecommerce, Listrak, Magento Commerce, online shopping, shopping cart abandonment

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  • TheBigOldDog

    "shopping cart abandonment costing retailers more than $18 billion annually"

    That's laughable. The cost is close to zero. It's whatever it costs you for your eCommerce site divided by the number of users.

    People abandon carts because they are price comparing, wish buying, etc. To say that cost $18B a year is insane. Many of those people come back and buy latter. Amazon understands this which is why they let you save your cart and have it split into a buy now piece and a save for later piece.

    I'd never do business with anybody who so fundamentally misrepresents the process and the "costs"



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