Shopping Cart Abandonment Rate

What is Shopping Cart Abandonment Rate? What is the formula and why it is important

Although the shopping cart abandonment rate is high, it’s important to remember that there are ways to reduce it. By understanding why customers abandon their carts and addressing those reasons, businesses can see a decrease in the number of shoppers who leave without making a purchase. What techniques have you used to reduce your shopping cart abandonment rate? Let’s discuss this in detail! 

What Is The Shopping Cart Abandonment Rate?

The shopping cart abandonment rate is a metric that measures how often online shoppers add items to their cart but do not complete the purchase. This can be for a variety of reasons, such as being distracted or forgetting about the items, not liking the shipping costs, or simply changing their mind. Whatever the reason, abandoned shopping carts can be a significant lost opportunity for businesses. 

Why Is A Good Shopping Cart Abandonment Important For Businesses?

Shopping cart abandonment is a major problem for online businesses, costing them an estimated $4 trillion in sales each year.

A good shopping cart abandonment rate is important for businesses for a few reasons. 

First, it ensures that customers are interested in the products that the business is selling. If a customer adds something to their cart and then abandons it, it’s likely because they were not interested in the product or did not want to pay the price. This helps businesses to focus on selling products that customers want. 

Second, a low abandonment rate indicates that customers are happy with the checkout process. If customers are abandoning their carts, it’s likely because they are frustrated with the checkout process, or they don’t trust the business with their credit card information. 

This can be a turn-off for potential customers, so ensuring the checkout process is smooth and easy to use is important. If customers abandon their carts, businesses lose out on potential sales. 

Therefore, it’s important to keep an eye on the Abandonment rate and ensure it’s as low as possible.

5 Causes Of Bad Shopping Cart Abandonment Rate

The Baymard Institute study illustrated the common reasons behind the increased shopping cart abandonment rate. Here is a quick overview:

Here are five of the most common reasons explained: 

Your Checkout Process Is Too Long Or Complicated

If your checkout process is shorter and simple, shoppers may get frustrated and decide not to complete their purchase. To fix this, streamline your checkout process and make it as easy for shoppers to complete their purchase.

You’re Not Offering Enough Payment Options

If you need to offer more payment options, shoppers may not be able to pay the way they want to, which can lead to abandoned carts. 

You’re Not Offering Free Shipping

If you’re not offering free shipping, shoppers may be less likely to complete their purchase. To fix this, offer free shipping on all orders, or at least on orders over a certain amount.

You’re Not Offering A Low-Price Guarantee

If you’re not offering a low-price guarantee, shoppers may be concerned that they could find a better deal elsewhere. 

You’re Not Providing Enough Customer Support

If shoppers have questions or problems, they may not be able to get the help they need from your customer support team.

If you’re experiencing high shopping cart abandonment rates, there’s likely a reason. By addressing the issues listed above, you can help to reduce your abandonment rate and improve your bottom line.

If you are interested to understand cart abandonment statistics, the Baynard Institute created a list of research reports worth looking at:

Abandonment rate statistics:

Average: 69.99% abandonment rate

 

How To Calculate Shopping Cart Abandonment Rate?

It’s disappointing when you’ve added items to your online shopping cart only to have them abandoned before completing the purchase. But have you ever wondered just how common this phenomenon is? Shopping cart abandonment is a major issue for eCommerce businesses, and the statistics can be pretty damning. 

On average, around 70% of shopping carts are abandoned before the purchase is complete. That means that for every ten customers who add items to their cart, seven will never make it to the checkout. Ouch.

So how can you calculate your own shopping cart abandonment rate? It’s pretty simple. Just take the number of abandoned carts and divide it by the number of total transactions (both completed and abandoned). For example, if you had 100 abandoned carts and 1,000 total transactions, your shopping cart abandonment rate would be 10%. Easy, right?

[1 – [ (#) completed purchases / (#) shopping carts created ]] * 100 = (%) Shopping Cart Abandonment Rate

Once you know your abandonment rate, you can start working on ways to reduce it. You can try a few different techniques, such as offering free shipping or making the checkout process simpler and more user-friendly. 

By tackling shopping cart abandonment head-on, you can boost your bottom line and keep more customers coming back for more.

Cart Abandonment Stats regarding Industries

Typically, the shopping cart abandonment rate depends more on industries and the products you will sell. The most common industries with the highest rates include finance, travel, nonprofit, and retail. Clothing has the highest abandonment rate. Here is the detailed view according to OptinMonster: 

Cart Abandonment Rate Concerning Devices

The Baymard Institute also examined how the Shopping cart abandonment rate is affected by the type of devices used. The overview resulted in:

15 Tips For A Good Shopping Cart Abandonment Rate

It’s no secret that shopping cart abandonment is a huge problem for eCommerce businesses. The average abandonment rate is around 69%, meaning nearly 7 out of 10 customers who add items to their cart end up leaving without completing the purchase.

There are several reasons why this might happen, but some of the most common include shipping costs, hidden fees, and complicated checkout processes. Whatever the reason, it’s important to try to reduce your abandonment rate as much as possible.

Here are 15 tips that can help you do just that:

Make Sure Your Pricing Is Clear From The Start

One of the most common reasons for shopping cart abandonment is unexpected costs at checkout. Make sure your pricing is clear by including all taxes, shipping fees, and other charges in the product price. This way, customers will know exactly how much they’ll need to pay before adding anything to their cart.

Offer free shipping

Free shipping is one of the best ways to decrease abandonment rates. In fact, a study by comScore found that 61% of shoppers said they would be more likely to complete a purchase if free shipping was offered. If you can’t afford to offer free shipping on all orders, try setting a minimum order amount for customers to qualify.

Provide Multiple Shipping Options

Not all customers want their orders to arrive as quickly as possible. Some are willing to wait a few extra days in exchange for cheaper shipping costs. Provide multiple shipping options at checkout so customers can choose the best option that suits their needs. Here’s how you can do this:

Make Your Checkout Process As Simple As Possible

The more complicated your checkout process is, the more likely customers will abandon their carts. Keep your checkout process as simple and streamlined as possible by only asking for the necessary information. The fewer steps there are, the better.

Offer Guest Checkout

Forcing customers to create an account before they can checkout is one of the surest ways to increase your abandonment rate. Offer guest checkout as an option so that customers can complete their purchases without having to sign up for an account.

Offer A Variety Of Payment Options

Not all customers want to pay with a credit or debit card. Some prefer to use PayPal, Apple Pay, or another form of payment. The more options you offer, the more likely customers will find a payment method that works for them.

Include Customer Testimonials

If you’re selling products or services that are new to the market, include customer testimonials on your checkout page. This can help to increase trust and confidence in your brand, which can lead to more sales.

Offer A Discount For Completing The Purchase

Incentivizing customers to complete their purchase with a discount is a great way to decrease abandonment rates. You can offer a percentage off the total purchase price, free shipping, or another type of discount. Just make sure that the discount is significant enough to make a difference.

Use High-Quality Images

The quality of your product images can have a big impact on conversion rates. Make sure that all of the images on your site are high-quality and clear. This will help customers to get a better idea of what they’re buying, which can lead to more sales.

Use Positive Customer Reviews

Including customer reviews on your checkout page is a great way to increase confidence in your products or services. Choose reviews that are positive and highlight the most important features of your offering.

Include A Progress Bar

If your checkout process consists of multiple steps, include a progress bar so that customers can see how far along they are. This can help to reduce confusion and make the process feel less daunting.

Use A Friendly And Professional Tone

The tone of your checkout page is important. Avoid using technical jargon or sales speak. Instead, opt for a friendly and professional tone. This will help to build trust with customers and make them more likely to complete their purchase.

Use A Clear And Concise Call-To-Action

Your call-to-action (CTA) should be clear and concise. Avoid using vague language or jargon. Instead, use simple and straightforward language that customers will understand.

Use A Strong Cta Button

Your CTA button should be impossible to miss. Use a bright and contrasting color so that it stands out from the rest of the page. And, make sure that the text is clear and concise.

Offer Customer Support

If customers have questions or need help, they should be able to easily get in touch with customer support. Include a phone number, email address, or live chat on your checkout page so that customers can reach out if they need assistance.

Final Takeaway

Shopping cart abandonment is a huge problem for online stores, costing billions of dollars every year. However, there are ways to reduce the amount of abandoned carts and increase sales. Applying cognitive neuroscience principles can help you understand how your customers think and make decisions, which can lead to increased sales.

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