What is Shopping Cart Abandonment Rate?
In the eCommerce terminology, shopping cart abandonment rate is the percentage of online shoppers who items the shopping cart but abandon it without completing the purchase.
It simple term, it is a percentage of potential buyers who were truly interested in an item or service but leaves without buying anything compared to the total numbers of carts created.
Cart Abandonment Rate Formula
1 - ( Number of successful purchases / Total carts created ) * 100 = % of Cart Abandonment Rate
The cart abandonment rate is calculated by diving the number of successful purchases by total carts created; subtract the result from one and then multiply by 100.
Why Cart Abandonment Rate is Critical?
A successful deal helps us to earn profits if a large number of users are just passing by without making any purchase then it is direct loss in the business. This means either person isn’t interested or something is fishy in between the site and buyer.
The most common fishy things could be…
- The website could be slower or not working well.
- Maybe the UI or UX is not well optimized.
- Or any other issues.
All you need to do is understand the severity of this cart abandon rate and identify the issues. Also, you need to take some serious steps ahead to minimize that shopping cart abandon rates.