Cart abandonment occurs when a customer on an ecommerce site adds an item to their shopping cart and leaves without completing the purchase. This issue arises frequently in online shops and poses a significant problem for many Japanese digital storefronts.

In this article, we’ll examine the basics of shopping cart abandonment, the reasons shoppers leave before buying, as well as measures businesses can take to address them.

What’s in this article?

• What is cart abandonment?
  
• How is cart abandonment measured?
  
• What causes cart abandonment?
  
• What tools can businesses in Japan use to reduce cart abandonment?
  
• What to know about cart abandonment
  

What is cart abandonment?

As mentioned above, cart abandonment occurs when customers place goods in their basket on an ecommerce mall or other platform and then leave without buying. It’s the online equivalent of adding items to your shopping cart at a brick-and-mortar supermarket or department store but walking out empty-handed. You might also hear terms such as “dropped purchases,” “abandoned carts,” or “browse abandonment” used to describe this phenomenon.

How is cart abandonment measured?

Ecommerce businesses can calculate a cart abandonment rate—that is, the percentage of baskets that never lead to an order. Understanding your site’s figure is key to minimizing this and ensuring that customers complete their purchases. Lowering this metric also increases revenue and improves conversions.

How to calculate the cart abandonment rate

To understand cart abandonment effectively, you need to know how the rate is calculated. Here’s how to do it:

1. Subtract the number of customers who bought from those who added items to their basket. This provides the number of shoppers who abandoned their carts.
   
2. Divide that figure by the total who placed something in a basket. This is the cart abandonment rate.
   

In other words, the percentage equals cart abandonment divided by total carts started.

Average cart abandonment rate

According to the Baymard Institute, the global cart abandonment rate exceeds 70%. Roughly 7 out of 10 customers leave a site without purchasing items that they had added to their cart.

A 2024 survey conducted by e-Agency Co., Ltd. found that lost sales were over 2.7 times the amount sold. This means that for an ecommerce site with monthly sales of ¥5 million, approximately ¥13.5 million worth of products was lost revenue. Although these items were added to the cart, they did not become actual purchases.

As an online store grows, minor changes in the cart abandonment rate can have a dramatic impact on a site’s income; minimizing cart drop-off is therefore imperative.

What causes cart abandonment?

Many factors prompt a customer to place something in a basket and then leave—here are some of the main causes:

Lack of preferred payment methods

When customers discover that their preferred payment method is not accepted at an online store, they might decide not to finalize the order.

Checkout choices have diversified in recent years, and the selection varies depending on the shopper’s preference. Accordingly, many digital storefronts offer a variety of options. The most common ones are cashless payments such as credit cards and QR-code scans.

Customers often seek ways to save money and obtain better value when making a purchase. For instance, many people choose their payment method based on limited-time promotions, such as double-reward point campaigns. As a result, if an ecommerce site doesn’t support the options buyers prefer, they could turn to a different store or take advantage of discounts at nearby physical retailers instead.

Credit purchases are another example. If only a limited range of brands is accepted, shoppers who can’t use their preferred card might end up abandoning their cart altogether.

• Solution: Offer a wide range of checkout choices, covering multiple channels and credit card brands, so a diverse audience can order goods from your online store.
  

Concerns about entering credit card information

Many are hesitant to register or enter their credit card information on ecommerce sites. This is especially true for stores run by individuals rather than well-known, major online marketplaces. On these smaller pages, it can be challenging for customers to determine whether proper security measures are in place, which can raise safety concerns. They could find something they want and still leave without completing the purchase.

• Solution: In this case, the top priority is trust. Ensure compliance with international security standards, such as PCI DSS, and thoroughly apply safeguards to protect personal information and transaction data. This includes utilizing data encryption technologies, such as Secure Sockets Layer (SSL) and Transport Layer Security (TLS), to prevent unauthorized access. Stripe’s fraud-detection system uses advanced machine learning algorithms to build a reliable environment buyers can use with confidence. It also helps to be transparent about the protections your business has implemented to emphasize safety by making this information easily accessible on your website.
  

Unexpectedly high price

When a customer goes to checkout, they could find that the cost is higher than anticipated due to the addition of shipping and other fees. If this total cost exceeds what they were expecting to see on the pay screen, they might leave without finishing the order.

• Solution: Display the grand total prominently before checkout so shoppers can see delivery charges and other fees early. It could also be worthwhile to run free delivery promotions or offer no-cost shipping on select items.
  

Account requirements

Sites that ask shoppers to create and sign in to an account before making a purchase often see higher drop-off. While account requirements can encourage repeat orders, customers tend to be reluctant to make profiles on sites they aren’t sure they’ll use again. First-time visitors are unsure about quality, convenience, and other factors that influence whether they want an account. If registration is too lengthy or tedious, customers might opt to buy from an online shop that lets them check out as guests.

• Solution: Let visitors order as guests without mandatory profiles. Businesses can also design the account registration process to be simple, ensuring it does not take too long to complete.
  

System errors

Have you ever found yourself at the payment screen of an online shop, ready to make a purchase, only to find that something goes wrong and you’re unable to complete the order? If a shopper repeatedly encounters an error screen and cannot finish—or worse, has to select their products again and repeat the process—they are likely to disengage. Furthermore, if the problem persists, they could lose trust in that store.

Credit card transactions can also fail for reasons outside the store—perhaps a problem with the issuer. Even if the platform has no role in it, a decline can still prompt cart drop-off.

• Solution: Site operators need to focus on improving their systems and communications infrastructure, ensuring that regular maintenance is carried out thoroughly. Provide multiple alternative payment options in case credit card transactions become unavailable for any reason. Additionally, if an error occurs due to a problem with the storefront itself, sites must share an apology in a prominent location to inform and reassure customers.
  

Complicated purchasing process

Shoppers generally want a clear, straightforward checkout. If the process of completing a purchase on the website is complicated and time-consuming, they might exit, regardless if they want the products.

Cart abandonment commonly happens due to the 3D Secure authentication performed during credit card payments. During this process, customers can feel inconvenienced by screen transitions and might lose interest in their purchase if the authentication fails.

Solution: Simplify checkout by removing unnecessary steps and, if needed, review the overall interface based on feedback. Choose a service provider that aligns with your business needs to build a more efficient payment framework. Also, consider implementing a fraud detection system that can more accurately identify suspicious transactions—especially those that cannot be caught by 3D Secure.

Lengthy wait for delivery

When the estimated delivery date appears during checkout and delays become likely, customers might switch to another site. Cross-border ecommerce often adds extra time, so site operators must factor in international shipping when setting expectations.

• Solution: Partnering with multiple carriers lets you offer a wide range of delivery choices. For cross-border sellers that store inventory in Japan, it’s important to clearly display the estimated number of days required for international shipping on their storefront.
  

Unclear return and exchange information

If return, exchange, or refund policies are unclear, buyers might feel uneasy about making a purchase. Ecommerce sites need to promptly and politely address issues such as product damage or delivery errors. When they don’t clearly explain how they resolve these problems—or provide only vague details—customers are likely to lose trust.

• Solution: Handle returns, exchanges, and refunds in ways that reassures shoppers. Businesses must clearly state the details of their return and exchange policy on their website. As long as you have an appropriate policy in place, customers will feel some sense of peace of mind, increasing the likelihood that they’ll complete their purchase.
  

No real intention to buy

Some shoppers are interested in a product but prefer to add it to their cart first before making a final decision. From their perspective, it’s ideal to take advantage of promotional campaigns offered on ecommerce sites to get the best deal. To illustrate, if free shipping or a 20% discount is available for orders over ¥5,000, customers must add items totaling at least that amount to their basket to qualify. Even if their total doesn’t reach the threshold, they can still add goods they’re invested in. However, if there are no other products they want to buy, they might decide not to complete the order, resulting in cart abandonment.

Even if a customer adds an item to their basket, they might compare prices with competitors and find a better deal elsewhere or become distracted by other tasks and forget about the purchase, leaving the cart untouched indefinitely.

• Solution: To counter this, run promos similar to your competitors or send reminder emails about saved baskets to nudge shoppers toward checkout.
  

What tools can businesses in Japan use to reduce cart abandonment rates?

To prevent cart abandonment, consider using tools such as the ones below:

Ecommerce platforms

Ecommerce platforms that support the development of online retailers also offer features to reduce cart abandonment. In particular, they could include functions to calculate and track drop-off figures and use this data to implement measures to resolve such problems. What’s more, you can send automatic reminder emails to customers with goods that have been in their basket for a set period.

Stripe also provides resources for comprehensive analysis of shopper behavior patterns. Based on data analyzed by the tool, you can pinpoint issues related to shopping cart abandonment on your website and craft effective strategies while trying out various adjustments.

Analytics tools

Platforms such as Google Analytics can examine visitor behavior on an online storefront to identify the causes of cart abandonment. Google Analytics accurately measures drop-off figures and can also provide a detailed look at the stages at which customers leave their baskets.

Marketing automation tools

Automating communication with your site’s audience can boost their engagement. Automation solutions make it easier to manage and carry out promotional activities efficiently—for example, by automatically sending emails about price drops or low stock levels. These messages can encourage customers to return and finalize purchases of items left in abandoned carts.

Online customer service tools

Consider using an online customer service tool to give visitors the same level of assistance and communication they would receive in a physical store. Features such as live chat, chatbots, and pop-up messages can help answer questions about promotions, product details, or how to navigate the site before shoppers place an order. This type of help can cut confusion and hesitation, leading to fewer abandoned carts.

What to know about cart abandonment

Cart abandonment is a significant issue for every ecommerce outfit. There are many causes, and the reasons vary from site to site. Online retailers looking to combat drop-off must first identify its causes to take appropriate actions and boost sales.

One common trigger is that customers are unable to use their preferred payment method. To address this, owners need a shopper-focused mindset, such as expanding the range of available checkout options and creating an ecommerce site that encourages and supports the desire to finish a purchase.

Stripe offers a wide range of functions to simplify checkout services, including the introduction of cash-free options such as Konbini payments, bank transfers, credit cards, information processing, and revenue management. With Stripe Checkout, businesses can easily integrate pay pages and establish an environment that meets all checkout needs, enhancing payment flows for one-time orders and subscriptions alike. This provides customers a smooth, convenient experience, increasing purchase completion rates. Stripe supports over 30 languages and more than 135 currencies, enabling you to expand your business within Japan and abroad.

If you’re interested in adopting Stripe, please don’t hesitate to reach out. Stripe offers clear, easy-to-understand assistance to help you implement a payment system that fits your online shop.