Cart Abandonment Rate is the percentage of users who add products to their cart but don’t complete the purchase. It’s a key metric for e-commerce businesses to assess checkout friction and improve the purchasing process.
Cart Abandonment Rate is calculated by dividing the number of completed transactions by the number of initiated checkouts, then subtracting that from 1, and multiplying by 100 to get the percentage.
Cart Abandonment Rate (%) = [1 - (Completed Transactions ÷ Initiated Checkouts)] × 100
Cart Abandonment Rate (%) = [1 - (Completed Transactions ÷ Initiated Checkouts)] × 100
If 1,000 users initiated checkout but only 300 completed their purchase, the Cart Abandonment Rate would be 70%.
A good Cart Abandonment Rate typically ranges between 60% and 80%. E-commerce businesses should aim to lower their Cart Abandonment Rate through checkout optimizations and improved customer experience.
A Cart Abandonment Rate above 80% may indicate serious issues with your checkout process, such as slow loading times, confusing forms, or unexpected costs.
Reduce the number of form fields, provide guest checkout options, and make the payment process quick and easy.
Unexpected shipping costs are a common reason for cart abandonment. Offering free shipping or promotions can incentivize users to complete their purchase.
Use abandoned cart emails to remind users of the items left in their cart and offer them a nudge with a special discount or limited-time offer.
