Posted in Marketing and Strategy Terms, Total Reads: 188
Definition: Shopping Cart Abandonment Rate
Shopping Cart abandonment rate can be said to be the percentage of shopping carts which are left by customers, just before the payment is made. It is usually in the context of e commerce is also called shopping cart abandonment.
This is a marketing statistic that is increasingly being studied by e-commerce websites. This marketing metric will help marketers of such sites to understand and study the website user behavior. Marketers can know how many shopping carts resulted in completion of sales, versus how many were abandoned.
A high abandonment rate means that many customers who initiated the purchase of a product abandoned it midway. A higher abandonment rate is an indicator of a problem and is usually a cause for concern. There could be many reasons why a customer would abandon the shopping cart midway. Some of these reasons are complicated checkout processes, which make it difficult for the customer to navigate, prices of the products, which are initially not displayed and come out during checkout, such as taxes or high shipping charges, competitive pricing by other websites, website crashes or timeouts, mandatory registration processes, and lack of options for payment.
For Example, if the cart abandonment rate for a website is found to be 70%, it can be inferred that 70% of potential sales have been lost, due to abandonment of shopping carts by consumers, halfway through the transaction.