What is a Good Cart Abandonment Rate

Has another sale slipped through your fingers?

It can be fun watching your customers make their way through your website. You get to see the products that are selling like hotcakes and the pages that are as baron as a desert. However, one of the more frustrating components is seeing someone make it all the way to the end of the purchase cycle before dropping off altogether.

Was it the postage price? Did the buyer not have their credit card handy? These questions can lead you to constantly tweaking your website to try and reduce your cart abandonment rate.

Unfortunately, your cart abandonment rate will never be zero. So, what should it be? Let's find out.

What is a Cart Abandonment Rate?

The abandonment rate is the percentage of buyers that add items to their shopping cart before leaving your website without paying for them. Normally a high calculation can indicate problems with your website. It might be related to the design, layout, or functionality.

You should study where along the purchase journey a customer has abandoned their cart. Once you've worked out the problem, you can take steps to address it and hopefully reduce the chance of people leaving before purchasing.

How Do You Calculate the Cart Abandonment Rate?

You can calculate your cart abandonment rate in three easy steps. Start by dividing the completed purchases by the number of shopping carts that customers have created. Next, subtract this figure by one. To turn it into a percentage, multiple it by 100.

So, for example, let's say you sold 200 products out of 1000 shopping carts that were created. That would equal 0.2. Now we have to minus one from 0.2, making it 0.8. To turn this into a percentage, we multiply it by 100, which ends up being 80%.

Why Do People Abandon Their Shopping Cart?

Unfortunately, there is no one single reason why customers don't continue along the purchase journey. It could be one issue or a combination of a few different problems. Here are some of the most common reasons for people abandoning their carts.

Long Checkout Process

Examine how many steps a customer needs to go through to purchase one of your products. The more forms they need to fill in, the higher the chance they will give up and spend their money elsewhere.

Sign-In Issues

Some stores require customers to create an account in order to make a purchase. Requesting a sign-in can be a barrier. Try offering the option to checkout as a guest to improve your cart abandonment rate.

Speed of Website

Buggy or slow websites can reduce the trust of a buyer. If they get too frustrated with how long it takes to proceed through screens, they'll eventually give up and buy the product somewhere else.

Unexpected Costs

One of the most common reasons buyers abandon their cart is when the item's price suddenly increases. It's often linked to the shipping rates. Sometimes it is how long it will take to arrive. This development can cause the customer to shop around for a better deal or choose an alternate method of retrieving the product. You can use our Interparcel postage calculator to compare quotes from a range of courier services.

What Should Your Cart Abandonment Rate Be?

The average cart abandonment rate sits at roughly 80% across all industries. It can vary according to the type of store you have. For example, the fashion industry has an average of 84%, while the travel sector sits at approximately 87%.

Your cart abandonment rate can also vary according to the device the customer is using. Mobiles have the highest rate, where a desktop or laptop is much lower. However, almost half of all online shopping is completed on the phone, which is why it's a good idea to ensure your store is optimised for these devices.

Is Cart Abandonment Rate Important?

In short, the answer is yes. Cart abandonment rate is what should guide you when making improvements or adjustments to your website. It also gives you an indication of how interested people are in your product offerings.

If you can focus on reducing your cart abandonment rate, you should see significant improvements in your overall conversion and sales revenue. So, if you run an e-commerce store or online business, we highly recommend paying attention to this figure.