The cart abandonment rate shows the percentage of abandoned shopping carts before completing a purchase. It indicates the correlation between the number of abandoned shopping carts and the number of initiated transactions. This metric helps marketers understand the behavior of visitors on a particular website.
It is calculated by dividing the total number of completed transactions by the total number of initiated transactions. This rate will identify what percentage of visitors add an item to the cart but don’t complete the purchase.
It is an essential metric for ecommerce sites because a high cart abandonment rate could mean a website needs a better user experience or a sales funnel needs to be fixed. Reducing this metric leads directly to increased sales and revenue, so optimizing this area is important.
