Cart abandonment rate is a metric used in e-commerce to measure the percentage of online shopping carts that are initiated by users but not completed with a purchase. It represents the proportion of users who add items to their online shopping cart but leave the website or app before completing the transaction. The formula for calculating the cart abandonment rate is:
Cart Abandonment Rate=(Number of Carts Abandoned/Number of Carts Initiated)×100
A high cart abandonment rate can indicate potential issues in the online shopping process, such as unexpected costs, a complicated checkout process, or concerns about payment security. E-commerce businesses often analyze and work to reduce this rate through improvements in website design, user experience, and targeted marketing strategies to encourage users to complete their purchases.