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Cart Abandonment Rate

What is Cart Abandonment Rate?

Cart Abandonment Rate is the percentage of online shopping carts that are abandoned by customers before completing the purchase process. In ecommerce, cart abandonment rate is used as a key metric to measure the effectiveness of the checkout process and identify opportunities for improvement.

Understanding how Cart Abandonment Rate works

Cart abandonment rate is calculated by dividing the number of completed purchases by the number of shopping carts created, and then subtracting the result from 1 to get the percentage of abandoned carts. A high cart abandonment rate can be indicative of issues with the checkout process, such as a confusing or lengthy checkout form, unexpected shipping costs, or a lack of payment options.

The formula for calculating cart abandonment rate is:

Cart Abandonment Rate = ((Total number of shopping carts created) – (Total number of completed purchases)) / (Total number of shopping carts created) x 100%

For example, if an ecommerce business had 1,000 shopping carts created and 750 completed purchases, the cart abandonment rate would be calculated as:

((1000 – 750) / 1000) x 100% = 25%

This means that 25% of shopping carts were abandoned by customers before completing the purchase. By analyzing this metric, the business can identify potential issues with the checkout process and take steps to improve it and reduce cart abandonment rate.

Business impact of Cart Abandonment Rate

Cart abandonment rate is an important metric for ecommerce businesses, as it provides valuable insights into the effectiveness of their checkout process and can help identify opportunities for improvement. By reducing cart abandonment rate, businesses can improve their conversion rates, increase sales revenue, and improve customer satisfaction.

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