Cart abandonment occurs during online shopping when a customer adds a product or service to their cart but does not complete the checkout / purchase process.
An abandoned cart reflects a sale did not go through as well as lost revenue for the company. This lost revenue has a direct effect on a company’s bottom line, especially if the cart abandonment occurs at high rates of abandonment. In addition, online businesses typically invest in marketing and advertising to attract customers, and this investment is called the Customer Acquisition Cost (CAC). Abandoned carts result in a higher customer acquisition cost in the long term.
Although there are some factors leading to an abandoned cart that businesses can’t control, such as a customer being distracted by a phone call as they were about to hit “buy,” there are others that businesses should review:
The cart abandonment rate is a crucial e-commerce metric that measures the percentage of online shoppers who add products to their shopping cart but do not complete the purchase.
The formula for cart abandonment rate is:
(Number of carts abandoned / number of carts created) X 100
The cart abandonment rate is typically expressed as a percentage.
According to Zippia, the average cart abandonment rate is 69.82%, so any number below that is good.