What is checkout optimisation?

Checkout optimisation refers to strategies used by online retailers to enhance the user’s purchasing journey, ensuring a smoother, faster, and more secure process. The ultimate goal is to reduce friction and distractions, making it easier for customers to complete their transactions, which in turn increases conversion rates. At its core, checkout optimisation is about minimising the chances of cart abandonment while building customer confidence in the purchase journey. 

Why do users abandon their carts?

Understanding why users abandon their carts is critical to reducing this occurrence. The global average cart abandonment rate sits at a staggering 73.65%. While this statistic can be disheartening for businesses, it also highlights the opportunity for improvement. There are several common reasons users leave their shopping carts behind without completing their purchase: 

1. Still in the discovery phase: Many users add items to their cart but don’t immediately intend to purchase. They might be comparing options or simply saving items for later. 

1. Complicated checkout process: Lengthy or confusing checkout processes frustrate users. If they encounter too many steps or unnecessary form fields, they are more likely to abandon the process altogether. 

1. Lack of trust in payment security: In today’s digital age, security is a primary concern. If a user is uncertain about the safety of their payment information, they’ll leave the site and search for a more secure alternative. 

1. Unexpected costs: Hidden fees or unexpected shipping charges that only appear at the final stage of checkout often lead users to rethink their purchase. 

1. Distractions: With countless distractions online, it’s easy for users to lose focus. A simple notification, a message, or an email can pull a user away from the checkout page, and they might never return to complete the purchase. 

Addressing these factors through effective checkout optimisation can significantly reduce cart abandonment rates. 

Why is checkout optimisation important to your business? 

The checkout process is the final interaction a customer has with your brand before completing a purchase. It’s the result of your marketing efforts, product selections, and website usability. If the checkout experience is smooth, customers are more likely to complete their purchases and remember their experience positively. This can lead to repeat business, improved customer retention, and an increase in your average order value (AOV). 

Additionally, as e-commerce continues to evolve, customer expectations grow around three critical aspects: speed, convenience, and security. Modern shoppers expect frictionless experiences, and a complicated or outdated checkout process can result in lost customers. Worse still, those customers may turn to competitors who offer faster and more secure transactions. This makes checkout optimisation essential to remaining competitive in the fast-paced world of online retail. 

How to optimise your checkout process 

While the journey to purchase begins long before a customer reaches the checkout, it is at this final stage where optimising the user experience can have the most immediate impact. Below are some proven techniques for checkout optimisation. 

1. Cross-selling relevant products

When a user adds an item to their cart, they have moved from the discovery phase into the consideration phase. At this point, cross-selling can be a powerful tool to increase the value of the transaction. Cross-selling involves recommending additional items that complement what the customer has already chosen, effectively increasing your AOV and overall revenue. 

Where can you display cross-sell recommendations?

• After a user adds an item to their cart. 

• Within the shopping cart itself, just before checkout. 

For instance, Estrid, a subscription-based razor company, uses cross-selling effectively by recommending related products, such as a travel case or shaving gel, immediately after a user adds a starter kit to their cart. These suggestions are not only displayed in the basket but also tailored to match the user’s initial selection, increasing the likelihood that the customer will add more to their order. 

To determine the most effective placement of cross-sell suggestions, businesses should conduct A/B testing. By testing different versions—one with cross-sell recommendations and one without—you can gain valuable insights into which approach maximises conversions and AOV. As your tests progress, you can iterate on the most successful version, refining your cross-sell strategy over time. 

2. Using psychological triggers to create FOMO

Creating a sense of urgency is one of the most effective ways to encourage customers to complete their purchases. Fear of missing out (FOMO) triggers impulse buying behaviour by making users feel like they need to act quickly to secure their desired product. 

How can you implement FOMO in your checkout process?

• Use tags like “Selling fast” or “Only X left in stock” throughout the user journey, from product listing pages (PLP) to product detail pages (PDP) and the checkout process. 

• Add time-sensitive discounts or limited-time offers to increase urgency. 

ASOS is a prime example of a brand that uses FOMO messaging effectively. On their PLP, users can see which items are “Selling fast,” and once they move to the PDP, “Low in stock” warnings reinforce the urgency. By the time a user reaches the checkout page, consistent low-stock alerts ensure that the customer understands the product is in high demand, encouraging them to complete the purchase before it is too late. 

However, be careful not to overuse FOMO. If the messaging feels exaggerated or insincere, users may lose trust in your brand, potentially increasing cart abandonment. It’s crucial to strike a balance between urgency and authenticity. 

3. Guest checkouts and express checkouts

Requiring users to create an account before making a purchase is one of the fastest ways to increase cart abandonment. Offering a guest checkout option allows users to complete their purchase without unnecessary friction. Guest checkouts require minimal information—typically just an email address, shipping details, and payment information—which creates a more seamless experience for users looking for quick and easy transactions. 

For brands unable to implement a guest checkout, consider simplifying the account creation process by reducing the number of required fields. By minimising form complexity, you can reduce the number of potential drop-off points. 

However, guest checkouts are a double-edged sword. While they may reduce initial abandonment rates, users who create accounts tend to have higher lifetime value (LTV) as they’re more likely to return and make repeat purchases. Therefore, testing the impact of guest checkouts on both short-term and long-term conversion rates is essential. 

4. Single vs. multi-page checkouts

A common debate in e-commerce optimisation is whether to use a single-page or multi-page checkout. Both have their benefits, and the best approach depends on your audience. 

• Single-page checkouts present all steps (delivery, billing, payment) on one page. This can lead to a faster checkout process, as users can see all the information they need to fill in at once. However, for some users, this can feel overwhelming, especially if too many fields are displayed at once. 

• Multi-page checkouts break the process down into manageable steps, reducing cognitive load. These can feel more intuitive, particularly for users less familiar with e-commerce platforms. However, the downside is that each additional step increases the chance of drop-off. 

The right choice for your business will depend on your target audience. Conduct A/B testing to see which type of checkout flow results in the highest conversion rate for your specific user base. 

5. Remove distractions and exit points

Once a customer enters the checkout flow, your priority should be to minimise distractions and keep them focused on completing the transaction. Removing unnecessary navigation links and reducing the opportunity for users to exit the checkout can help reduce abandonment. 

For example, Gymshark has an extremely minimal checkout page, with the only exit point being the logo at the top of the page. By keeping the page free from unnecessary clutter and distractions, the focus is placed solely on completing the purchase. Gymshark also includes an order summary within the checkout page, which reduces the need for users to navigate back to the basket to check product details. 

6. Building trust and enhancing security

Many customers are wary about sharing personal and payment details, especially when shopping with a brand for the first time. Displaying trust badges, SSL certificates, and secure payment options can help alleviate these concerns. A secure-looking checkout page reassures customers that their information is safe and encourages them to follow through with their purchase. 

Consider placing these security indicators prominently within the checkout flow, so users can easily see that their data will be protected. 

7. Post-abandonment email strategy

Even with the most optimised checkout flow, some users will inevitably abandon their carts. This is where a strong post-abandonment email strategy comes into play. By sending timely and well-crafted emails, you can remind users of their unfinished transaction and entice them to return to complete it. 

Many high-end brands, such as Louis Vuitton, employ this technique. If a user abandons their purchase after entering their email address, they receive an email within 30 minutes reminding them of their basket. These emails are not only a way to recapture lost sales but also serve to keep the brand fresh in the user’s mind. 

Experiment with different messaging styles, frequencies, and offers in your cart abandonment emails to find the most effective combination for your audience. 

Continuous testing and learning

Checkout optimisation isn’t a one-size-fits-all process. Some techniques may yield immediate gains, while others might have a longer-term impact. The key is to continually test, learn, and adapt. Run A/B tests on different elements of your checkout flow to monitor user behaviour and find the most effective solutions. As e-commerce markets evolve, so should your optimisation strategies. 

By focusing on reducing friction, addressing customer concerns, and creating a seamless experience, your checkout process can become a powerful tool for reducing cart abandonment and boosting conversions.