A PayPal survey this week shows that 50% 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.

Note: High Shipping Costs Top the List.

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 released 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 costs transparent,” said Eddie Davis, senior director of SMB merchant services, PayPal.

The survey also uncovered signs that the economy still has shoppers wary about clicking the “purchase” button.

• 33% of respondents abandoned checkout because they didn’t plan for all of the expenses
• 25% left the site to search for a coupon.
• 33% later returned to the same site to buy.
• 20% 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.

“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.

Ivan Walsh is a technology writer based in Dublin, Ireland.

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