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New PayPal Survey Reveals Why Online Shoppers Abandon Purchases
High Shipping Costs Top the List; PayPal Introduces New Feature to Help Merchants Show Total Cost of Purchases Early on in Checkout Process

SAN JOSE, Calif.--A PayPal (NASDAQ:EBAY) survey released today revealed that nearly half (45 percent) of online shoppers have abandoned their carts multiple times in the past three weeks due to high shipping costs, security concerns and lack of convenience. The average cost of abandoned goods in U.S. shopping carts is $109.

High shipping costs was cited as the largest single reason for cart abandonment. While nothing could have prevented one-third of shoppers from abandoning purchases, the survey found that providing shipping costs upfront might have caused 40 percent to complete the purchase. To help merchants encourage shoppers to purchase, PayPal today announced a new Express Checkout feature – the PayPal Instant Update API. By integrating the new API, merchants can show order details earlier in the process including shipping options, insurance choices and tax totals.

“To get shoppers to buy, it’s critical merchants make the checkout experience easy and costs transparent,” said Eddie Davis, senior director of SMB merchant services, PayPal. “Our new PayPal Instant Update API will help merchants get customers the information they need upfront to drive sales.”

The survey also uncovered signs that the economy still has shoppers wary about clicking the “purchase” button. More than one-third of respondents abandoned checkout because they didn’t plan for all of the expenses; while more than 25 percent left the site to search for a coupon. However, one-third of shoppers later returned to the same site to buy. An additional 20 percent purchased the items at a brick and mortar store or competitor’s Web site.

“Merchants who don’t welcome back abandoners with open arms are leaving hundreds of dollars per shopper on the table,” added Davis. “Merchants need to remember the items that customers abandon and make it easy for them to buy when they return. Sweetening the deal with free shipping, coupons and special discounts is also a great way to encourage online shoppers to complete their purchases.”

Breakdown on Why Shoppers Abandon

At least a fifth of all U.S. survey respondents cited the following as very important reasons for cart abandonment:

  • High shipping charges: 46 percent
  • Wanted to comparison shop: 37 percent
  • Lack of money: 36 percent
  • Wanted to look for a coupon: 27 percent
  • Wanted to shop offline: 26 percent
  • Couldn’t find preferred pay option: 24 percent
  • Item was unavailable at checkout: 23 percent
  • Couldn’t find customer support: 22 percent
  • Concerned about security of credit card data: 21 percent

About the survey

The PayPal Checkout Abandonment Study was conducted by comScore among active shoppers who had recently abandoned a shopping cart. In the United States 553 people participated between May 12-15, 2009. All respondents were asked about their most recent abandoned session, regardless of the site involved.

About PayPal

PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 73 million active accounts in 190 markets and 19 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company and is made up of three leading online payment services: the PayPal global payments platform, the Payflow Gateway, and Bill Me Later. More information about the company can be found at https://www.paypal.com.

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