Cart abandonment rate
Cart Abandonment Rate: Explanation, Reasons & Calculation
Teaser: 73% of Online Shoppers Ditch Their Carts: Why? This article explores the surprising reasons behind cart abandonment and reveals how to turn those abandoned carts into sales.
Ever have a potential customer vanish mid-checkout? You're not alone. 7 out of 10 customers disappear after adding your best-selling product to their cart – a frustrating $18 billion revenue loss for eCommerce businesses each year. This phenomenon, known as cart abandonment, is surprisingly common, but there are ways to turn those abandoned carts into sales.
What is Cart Abandonment Rate?
Ever fill your online cart but not hit checkout? That's cart abandonment in a nutshell. It's when shoppers add items to their virtual cart but leave the website before buying anything. This metric, the shopping cart abandonment rate, reflects the percentage of potential customers who show initial interest but ultimately don't complete a purchase.
While the average cart abandonment rate hovers around 73% for desktop users, it can climb as high as 85% on mobile devices and 80% on tablets. Interestingly, location and product category also play a role. Shoppers in Spain are most likely to abandon carts (86%), while those in the Netherlands are least likely (65%). Fashion, luxury, and baby items see higher abandonment rates, while December boasts the lowest overall abandonment rate (77%) due to holiday sales and promotions.
How to Calculate the Cart Abandonment Rate
Here's how to calculate the Card Abandonment Rate:
- Divide Completed Transactions by Initiated Sales: Start by dividing the total number of completed purchases (transactions) by the total number of times people added items to their cart.
- Calculate the Abandonment Percentage: Subtract the result you obtained in the first step from 1. Then, multiply this number by 100 to express the abandonment rate as a percentage.
Cart Abandonment Rate= (1−Total Shopping Carts Created/Total Completed Purchases)×100
Reasons for Cart Abandonment
Let's explore some of the most common reasons why shoppers ditch their carts:
- Confusing Website or Checkout: A frustrating website layout with a complicated checkout process can make shoppers second guess their purchases.
- Forced Account Creation: Many stores require creating an account to checkout. While this helps with marketing, it can feel like extra work for a one-time purchase.
- Hidden Costs: Unexpected shipping fees and taxes at checkout can be a major turn-off.
- Slow Delivery Times: Today's shoppers expect fast delivery. Clearly display estimated delivery times on product pages to manage expectations.
- Unclear Return Policy: A confusing return policy can make shoppers hesitant to buy, especially for expensive items.
- Limited Payment Options: Not having preferred payment methods can deter customers who prioritize convenience and security.
- Security Concerns: A dated website design, lack of security certificates, or an unfamiliar brand name can raise red flags for security-conscious shoppers.
- Product Availability Issues: Stock limitations or restrictions on purchase quantities can frustrate customers who discover they can't buy what they added to their cart.
- Tempting Competition: Online shoppers easily compare prices and products across different stores.
- Slow Website or App: A slow website or app with performance issues can damage your credibility and lead to cart abandonment.
Shop owners with high cart abandonment rates should avoid these mistakes. While reaching 1% might be difficult, you can get below the market average in your niche.
How to Decrease the Shopping Cart Abandonment Rate
Here are some key strategies to reduce cart abandonment and turn browsing into buying:
- Mobile-Friendly Matters: Choose a platform that delivers a smooth experience across devices, especially mobile phones. Slow loading times or clunky navigation on tablets and phones will drive customers away.
- Multiple Payment Options: Cater to shopper preferences by offering a variety of secure payment methods, including digital wallets, buy-now-pay-later options, and popular shopping apps. This convenience can increase order value and encourage completion.
- Free Shipping Incentives: Consider offering free shipping, especially for orders above a certain amount. This strategy competes with giants like Amazon and removes a potential barrier to purchase.
- Clear Return Policy: Highlight your return policy during checkout to reassure customers. Knowing they can easily return unwanted items builds trust and reduces cart abandonment.
- Retarget Abandoned Carts: Reconnect with potential customers who left items behind. Use social media ads or targeted emails featuring abandoned products and enticing offers like free shipping to nudge them back to complete their purchase.
- Timely Reminder Emails: Send personalized cart recovery emails reminding customers about the items they left inside their carts. Act quickly – most conversions happen within the first hour. Offer additional incentives like discounts or free shipping to sweeten the deal.
- One-Click Checkout: Streamline the checkout process by offering one-click checkout options. This reduces the number of steps required to complete a purchase and significantly increases conversion rates.
Taking these considerations into account, you should quickly see your cart abandonment rate drop while your sales grow.
Card Abandonment Rate: Key Takeaways
- Understanding Cart Abandonment: Cart abandonment occurs when shoppers add items to their virtual carts but leave the website before completing the purchase. It's a crucial metric reflecting the percentage of potential customers who show initial interest but don't convert.
- Common Reasons for Abandonment: Several factors contribute to cart abandonment, including confusing website layouts, hidden costs, slow delivery times, and limited payment options. Addressing these pain points can help decrease abandonment rates and improve overall conversion rates.
- Calculating Cart Abandonment Rate: To calculate the cart abandonment rate, divide the total number of completed purchases by the total number of initiated sales, subtract the result from 1, and multiply by 100. This formula helps businesses assess their performance and identify areas for improvement.
- Strategies to Reduce Abandonment: Implementing mobile-friendly designs, offering multiple payment options, providing free shipping incentives, highlighting clear return policies, and utilizing retargeting techniques are effective strategies to reduce cart abandonment rates and enhance conversion rates.