Define and estimate online cart abandonment
What is cart abandonment?
Cart abandonment is a phenomenon specific to e-commerce. A user adds items to their cart for purchase on an online store, but leaves the site without completing the order process with a transaction . Cart abandonment can be related to several factors, both external (on the buyer’s side) and internal (on the merchant’s side).
Potential buyers sometimes use the shopping cart as a wish list. A shopping list to save for a more convenient time or to make a 1 er selection of products. Consumers can also compare their offer with that of other sites at the same time and decide to complete the purchase elsewhere.
For online shopping sites, some elements of the customer experience may have discouraged users, such as high delivery costs, lack of flexibility in payment methods, problems in the payment process, an unclear customer journey or too complex navigation, security issues, and so on.
How is the churn rate calculated?
While the accuracy of the sms services data collected depends largely on your ecommerce solution (level of tracking, GTM and GA settings, etc.), calculating your visitors’ cart abandonment rate is fairly simple. It’s the number of carts created that didn’t lead to a transaction, or in plain English, a sale.
The calculation is therefore as follows:
100- [Number of transactions / number of basket creations X 100].
Example: Yesterday my company had 20 carts created for 5 transactions. 100- [20/5X100] =75. Cart abandonment rate is 75%.
You can calculate your online shopping cart abandonment rate using data collected by your web analytics solution.
Depending on the an essential communication tool in case of crisis tracking level and the payment module set, the goal that expresses the creation of a cart can be different: it is the number of “cart creation” events or the number of visits to the URL that summarizes the added items.
What are the main causes of cart abandonment by online visitors?
According to a study conducted by the independent American institute Baymard 1 on cart abandonment in 2023, shoppers will abandon their carts more than 69% of the time (average based on 48 different studies conducted between 2012 and 2023). Imagine the number of customers/shoppers that could be gained by solving the problem that causes them to abandon their carts.
Here are the Top 10 reasons for dropping out of school:
- 48% Additional costs to purchase or costs that are too high (delivery/shipping, taxes, miscellaneous costs, etc.)
- 24% Mandatory creation of customer accounts
- 22% Delivery times too long
- 18% Trust in the site regarding payments – Fear of using a bank card on the site (especially outside the EU)
- 17% Payment process or order tunnel too long/complicated
- 16% I was unable to see/calculate the total cost of the order in advance
- 13% The website had errors/concerns about usability and design
- 12% The return policy is not satisfactory
- 9% Few payment options/lack of diversity in payment methods
- 4% Credit Card Decline
These statistics may be scary, but they are proof that e-tailers have a huge opportunity . 69% abandonment, fear of checkout, means 69% room to optimize cg leads the customer journey and increase ROI.
Putting an item in your cart expresses your visitors’ intent to purchase . It doesn’t take long for the user to take action and become a buyer. SMS Plus, 3 of the top 10 reasons for cart abandonment can be avoided with.
