Abandoned Cart rate is a metric that illustrates the percentage of potential customers who visited a website and left without completing a purchase.
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Abandoned Cart rate is a metric that measures the number of customers who added items to their cart, initiated the checkout process, but didn’t complete the purchase. This metric reflects the amount of money lost due to potential customers not buying any items and leaving. The formula to calculate Abandoned Cart rate is the number of Abandoned Carts divided by the total number of shoppers who add items to their cart. An example of an Abandoned Cart rate would be if 10 customers added items to their carts, but only 8 of them completed their purchases, the Abandoned Cart rate would be 10% (2/10).
Abandoned Cart rate = Number of Abandoned Carts/Number of Shoppers Who Added an Item to the Cart *100
If 10 customers add items to their shopping cart and 2 of those customers don't complete their purchase, then the Abandoned Cart rate would be: 2/10 * 100 = 20%.
Abandoned Cart rate is a vital metric to monitor for ecommerce businesses as it illustrates potential lost revenue. It’s important to understand why customers aren’t completing purchases to make data-driven decisions on how to improve this metric.
There are multiple factors that can influence Abandoned Cart rate, such as slow checkout processes, high shipping costs, complicated product selection, confusing website navigation, and more.
Some strategies to reduce Abandoned Cart rate include providing discounts and promotions, streamlining checkout processes, offering free shipping, providing easier product comparison, and improving website navigation.
Abandoned Cart rate is closely related to other important ecommerce metrics such as Conversion Rate, Average Order Value, and Shopping Cart Abandonment Rate. By improving Abandoned Cart rate, you can also expect to see improvements in these other metrics.