JCB International has launched a new white paper aimed at supporting European merchants to address a common challenge in the e-commerce space: cart abandonment.
Merchants who proactively tackle cart abandonment will be able to capitalise on the ongoing growth of online shopping and to discover new opportunities in the global digital market.
The global e-commerce market is expected to continue its upward trajectory, reaching $6.3 trillion in 2023[ii].
The Asian market, in particular, has seen remarkable growth, with Southeast Asia alone accounting for five of the world’s ten fastest-growing e-commerce markets[iii].
This presents a significant opportunity for merchants in Europe as there is an increasing willingness among Asian shoppers to purchase online from businesses worldwide.
However, there is potential for even greater growth by tackling the perennial challenge of cart abandonment in the e-commerce space.
Doing so presents various benefits for merchants, such as increasing sales turnover, higher conversion rates, improved customer experience, and customer loyalty.
These, in turn, will give businesses a significant advantage as global e-commerce competition intensifies.
The primary causes of cart abandonment have been identified in the white paper, ‘Click into Place | Unpacking Cart Abandonment’.
This includes easy-to-implement solutions such as providing payment choice, showcasing clearly defined options, logos, local currency requirements, pricing, and implementing device-specific payment journeys.
With a particular focus on online spend from Asia, the white paper aims to help European merchants boost e-commerce sales and stand out from the crowd by providing best practice solutions to help encourage customers through checkout.
Accounting for 55% of the global consumer class (2.2 billion people), Asia has considerable spending power[iv]. However, despite a predicted online retail market of over $2.8 trillion by 2025[v], Asia Pacific has the highest cart abandonment rate in the world at over 84% in March 2023[vi].
Understanding the Asian customer can help merchants to capitalise on revenue potential and establish themselves as a cross-border purchasing option, with the scope of reducing cart abandonment levels.
“E-commerce sales are showing no signs of slowing down and catering for the needs of an international audience will become a priority,” explains Ray Shinzawa, Managing Director, JCB International (Europe).
“With Asian countries and regions becoming the world’s fastest-growing e-commerce market, understanding and exceeding the expectations of Asian customers represents the first step in tackling cart abandonment.”
“Cart abandonment is a pressing challenge that online merchants face as more players emerge,” continues Nick Fisher, General Manager, Sales & Marketing, JCB International (Europe).
“Adopting a proactive approach and leveraging expertise from the right partners can help merchants shift the narrative and transform a challenge into an opportunity.
While there is no one-size-fits-all solution, understanding the purchasing behaviours of your customers and ensuring the availability of their preferred payment option will put you in a far better position to reduce the number of abandoned carts and increase sales turnover.”
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[i] JCB Proprietary Data – as of June 2023
[ii] 38 E-Commerce Statistics of 2023 | Forbes (Forbes.com) – as of May 2023
[iii] Southeast Asia sees the fastest digital sales growth in the world | Insider Intelligence (insideintelligence.com) – as of May 2023
[iv] Asia’s consumer class is growing. This chart shows how | World Economic Forum (weforum.org) – as of May 2023
[v] Online Retail in Asia Pacific Will Add US$1 Trillion By 2025 | Forrester (forrester.com) – as of May 2023
[vi] eCommerce Benchmarks | Dynamic Yield (marketing.dynamicyield.com) – as of May 2023
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