After being in stealth mode since November 2010, Toronto-based startup Recart has officially announced the beta launch of their new service to help websites recover sales from abandoned online shopping carts. Recart is one of the 110 startups from around the world to be chosen as part of round one of the 2011 Start-Up Chile program.
Recent studies have shown that up to 60 to 70 percent of shopping carts are abandoned. There are many reasons why this may happen. Retailers can undergo a number of procedures to improve their chances to convert website visitors into sales. However, tactics like website re-designs and split testing often do not get them as far as they would like to recover lost conversions.
Recart‘s founders, Anton van Rhyn and Joshua Gross discovered that according to a recent Omniture study, if you follow-up with someone via e-mail after they abandon their shopping cart on your site, roughly 2% will follow-through with their purchase. E-mail is one of the solutions that they are working on as a new tactic to recover lost sales for retailers.
It is really easy to deploy their tool on your website. Recart provides a line of code that you install on your site in a similar fashion to Google Analytics.
The Recart team decided to participate in the Start-Up Chile program because the Chilean government is providing them with seed capital to open up an office in Santiago. By doing so, Recart will gain access to the South American eCommerce market, where there are more potential eCommerce customers and less competition for their particular product.
The company will still be pursuing business and servicing clients in North America from Toronto.
“We are very excited about the opportunity to participate in the Start-Up Chile program,” says van Rhyn. “This will allow us to open up an office in Santiago and gain access to the South American market, as well as meet the international founders of over 200 other startups.”
There are a handful of other Canadian startups that will be joining Recart this summer in Chile. Here is the full list of startups that were chosen from around the world to participate in the first round of the 2011 Start-Up Chile program. Recart was listed under South Africa because van Rhyn was born there. However, the team is based in Toronto, Canada.
Please tell us what you think about the fact that Canadian startups are heading to Chile to take part in their program.