Shopping Cart Abandonment - Financial Implications

August 8th, 2013

On a seemingly daily basis, online e-commerce companies announce a new killer application that will revolutionize the ecommerce world and exponentially increase sales for those entities migrating to it. 

What no one would tell you is that in order to drive those increased sales, companies must also overcome a multitude of issues; legacy decisions, new marketing and sales strategies, increased advertising, technical and technology challenges, limited budgets, lack of resources and others. And once those issues have been adequately dealt with and the goal of driving eyeballs to a website has been accomplished, a new and ever-growing problem would quickly emerge; customers abandoning online purchases. This new and ever-growing problem which few are acknowledging, is also referred to in the market place as shopping cart abandonment. Billions of dollars of online purchases are left unrealized due to the lack of attention to consumer needs.

As technology and a global Internet infrastructure have improved, the number of ecommerce application service providers has skyrocketed. Not more than few years back, the same industry was just in its infancy. Today, billions of dollars in online transactions are processed on a weekly basis. That overwhelming explosion of online commerce has quickly crowded the industry with hundreds of applications in such a manner that potential clients and consumers are now deluged with new claims of grandeur. Most noticeable is the recent growth in the area of online video advertising and interactive ecommerce which most analysts are predicting as the next big thing. Unfortunately, all e-commerce applications to date seem to share similar common denominators known to cause purchase abandonment in the first place. The most damaging element of all is redirecting buyers to external links and web pages as they attempt to submit their payment and process their purchases. Customers become distracted and frustrated when they are unable to return to the original point of purchase. E-tailers lose their customers and another portion of their return on investment in the process.

The online industry began experiencing the effect of shopping cart abandonment less than four years ago. Today, the financial implications are now surmountable. And while ecommerce capabilities have improved for online shoppers, the problem has grown geometrically. In 2008 shopping cart abandonment was tracked at approximately $18B. That total has now grown to over $44B in 2011. Industry analysts are guesstimating that only 15% of online e-tailers have developed any strategy to counter measure those abandoned sales dollars.

Luckily, there is now a completely new and innovative solution that will mitigate shopping cart abandonment and maximize revenue generation using a single interface. It is called Inteveo DIVE™ (Dynamic Interactive Video Experience). DIVE is a
total turn-key solution developed to monetize video content with an embedded product placement and payment processing solution. The entire process of selecting a product, placing it in a shopping cart, checking out and processing a payment is done inside the video with no external redirects. Consequently, consumers are left to enjoy a unique viewing experience and seamless transaction each and every time.

DIVE was developed to create a one-of-a-kind engaging environment that invites consumers to interact with video content and make immediate one-click purchases. The backend technology powering DIVE is equally robust and impressive. Rather than requiring clients to engage multiple service providers to deliver an online ecommerce environment, Inteveo takes care of the entire process for a modest set-up fee and a fixed 20% revenue share. DIVE streaming and interactive media is supported by a top-tier group of global CDN and Cloud computing networks incorporating high-level security and geo-synchronized distribution.

Feel free to view our demos and contact us for more information about the world’s first true solution to drive new revenue streams, provide improved security and enhance the total experience of your website visitors.

Stay tuned for more information to help you collect those abandoned shopping cart dollars in the very near future!