Abandoned Cart (AC) refers to the phenomenon where online shoppers add items to their virtual shopping carts but exit without completing the purchase.
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An abandoned cart in e-commerce occurs when a visitor adds a product or products to their online shopping cart but leaves the website without finalizing the transaction. It's a widespread issue in the online retail world, with abandonment rates varying between industries and businesses.
Abandoned Cart = (Number of Abandoned Carts / Total Carts Created) x 100
Imagine an online store that has 1,000 shopping sessions, and customers initiate 500 carts. Out of these 500 carts, only 300 result in successful transactions. In this case, the abandoned cart rate would be:Abandoned Cart = (200 Abandoned Carts / 500 Total Carts) x 100 = 40%
A high abandoned cart rate indicates potential issues with the shopping experience or pricing, resulting in lost sales opportunities. Understanding and addressing the factors causing cart abandonment can help businesses improve conversion rates, increase customer satisfaction, and boost overall revenue.
Abandoned cart rates can impact other vital metrics, such as conversion rates, average order value, and overall revenue. Monitoring these metrics and keeping abandoned cart rates in check can help businesses optimize their e-commerce strategy and ultimately achieve greater success.