What is Shopping Cart Abandonment Rate?
Shopping cart abandonment happens when a potential customer initiates an order online by starting the checkout process, but leaves before the purchase is completed. The rate at which visitors abandon is an important statistic to track for online retailers as it can mean the difference between a profitable eCommerce store and unsuccessful one. Any changes to influence the abandonment rate will have a direct impact on the bottom line that can be seen.
Abandonment Rate Formula
The typical ecommerce site can calculate their abandonment rate using the following formula:
This formula calculates a percentage based on the number of people who initiate a transaction and the amount of these individuals who actually complete the transaction. In short it allows you to identify how many people intended to make a purchase, but were “lost” before it was completed.
Decreasing Abandonment Rates
There are many possible reasons why users will abandon the purchase process. As the owner of an ecommerce website it is important to recognize these issues and take steps to either avoid or resolve them. The following are common causes of abandonment:
- A common cause of abandonment is that the user didn’t have time to complete the order process. The modern web user has a very short attention span, so it is critical to keep checkout processes as streamlined as possible.
- Error messages or technical problems are a very easy way to lose a potential customer that lost patience and trust in the checkout system. Many online shoppers are wary of giving out credit card and other personal info, so a reliable checkout system is critical to maintaining their trust.
- The battle to convince a customer to purchase a product/service is not over when the order is initiated. Throughout the ordering process it is important to maintain the customer’s confidence in their decision to order.
Unfortunately some other reasons for abandonment are more difficult to avoid. For example, many online shoppers like to comparison shop and will leave the ordering process due to price or shipping charges. The following graph illustrates the top reasons for abandonment: