Cart abandonment occurs when a potential consumer begins the checkout process for an online buy but abandons the process before completing the purchase. Any item that is added to the shopping cart but never completed is termed “abandoned” by the customer. Shopping cart abandonment is a critical part of the online purchasing process that merchants pay close attention to.
Cart abandonment rate is derived by dividing total completed transactions by total begun transactions. This rate indicates what proportion of a site’s users indicates buy intent by adding an item to the basket but do not finish the transaction.
High rate indicates that many of your clients begin the purchasing process but choose to not proceed with the purchase of items. The abandoned items represent potential revenue that you are not receiving since the transactions are not completed, hence impeding your aim of maximizing profit.
Shopping cart abandonment is an essential measure for e-commerce sites to monitor since a high abandonment rate may indicate a bad user experience or a broken sales funnel. However, a reduced shopping cart abandonment directly translates to increased traffic, sales, and income, therefore streamlining the checkout procedure is a top priority for many online merchants.