Market research suggests that shopping cart abandonment, whereby users add things to their cart but subsequently fail to complete the transaction, can run as high as 75% in some online businesses. There are many reasons why people abandon their carts, and a lot of literature has been written on the topic, but one of the main culprits is “sticker shock”. When the cost of shipping and/or applicable taxes is perceived to be excessive by the user, and they only find this out during the check-out process, a statistically very significant number of sales will be lost. Limit this effect by informing customers about shipping costs and taxes up-front, avoiding unpleasant surprises at the end of the process. Even if your products already include all applicable surcharges, state this clearly throughout your website rather than trying to give users a pleasant surprise later on.
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