Shipping costs drive nearly two-thirds of Thai consumers to abandon online shopping carts

New research from SAP reveals that Thai consumers are stopping short of clicking “purchase” at checkout stage, with more than half (60%) abandoning their online shopping carts all the time or sometimes. The SAP Consumer Propensity study focusing on online shopping behaviours reveals that high shipping costs (48%) are a major deterrent. Additionally, more than a third of Thai online shoppers (39%) use online shopping carts as a visual display board to compare prices with no intention to buy, and they are also put off by issues during the payment process (31%), above the APAC average of 23%.

1,000 Thai consumers were surveyed to understand their online shopping preferences and motivation to complete a purchase, as part of a global study including the other APAC countries of Australia, China, Hong Kong, India, Japan, South Korea and Singapore. The results found that price is the biggest motivating factor, with promotions (59%) and discounts when purchasing another item (41%) encouraging shoppers to complete the transaction. Thai consumers are also on the lookout for a personalised experience, indicating that they want brands to demonstrate an understanding of their purchase history (37%) and almost half are also the most interested in suggested recommendations, higher than the APAC average of 25%.

“Cart abandonment data is an excellent resource for retailers to identify friction points in the consumer journey and make improvements to the overall consumer experience.The type of items selected, time spent to complete specific actions, duration left in the cart, and the precise point of abandonment are all data that allow retailers to take informed steps to boost engagement and increase conversion,”said S. Pranatharthi Haran, Head of Business, Southeast Asia, SAP Customer Experience.

The study suggests that Thailand’sbusinesses may want to pay particular attention to the user experience at checkout stage. For example, retailers can provide visibility of shipping and tax prices sooner so that shoppers do not get a shock at checkout stage from the final cost that ballooned from the original price label.Ensuring that checkout processes are simplified and can be completed in less than five steps will also encourage consumers to complete the transaction.

Thai consumers turned out to be the most reticent towards online shopping compared to their APAC counterparts, with the results indicating that they purchase the least for almost all (five out of seven) categories of goods. This includes travel (19% below average), digital goods (14% below average), groceries and consumer products (19% below average), entertainment (21% below average) and furniture (12% below average). For the remaining categories, they are also behind in terms of purchasing financial products (12% below average) and fashion goods (4% below average).

“Compared to other Asian marketsThailand’s ecommerce market is in its infancy and represents a considerable opportunity to those businesses who can offer consumers a personalised and engaging experience. However, the experience needs to revolve around their lifestyle and extend beyond the purchase to ongoing service and support,” added Haran.

An omnichannel approach based on having a view of the customer across all touchpoints at all times, and advanced analytics to anticipate customer behaviours and understand their real-time intent is critical in offering a unique shopping experience.