What is an abandoned cart in e-commerce?
A shopping cart that contains buyer details but never goes through the transaction is considered to be “abandoned” by the buyer.
The visitor adds at least one or more items to the shopping cart, adds contact details, and proceeds to exit the store without completing the order.
Shopping cart abandonment has completely nothing to do with the design and visibility of the website or the offers run in the advertisements. So, This requires careful attention to your store, and analysis of the exact reason users are bouncing back from the store despite clearly liking the products.
Konigle provides a complete checkout analysis tool that helps to identify your abandoned checkouts, which items are getting abandoned most often, and how your average order value has been trending over the last 30 days. Konigle also identifies discarded checkouts and labels checkouts as spam or via bots.
Read More: Abandoned vs Discarded Carts
Abandoned cart rate formula
Now you have an idea about shopping cart abandonment but now the question is what is the cart abandonment rate? So simple answer is the cart abandonment rate is calculated as the total number of completed purchases by dividing the number of shopping carts generated. Subtract the value from 1 and then multiply by 100 for the abandonment rate percentages.
Cart abandoned rate(%) = 1 - completed purchases / shopping carts generated * 100
For example, if you have 50 completed purchases and 300 shopping carts generated, the shopping cart abandonment rate would be 83.33%.
1 - (50/ 300) x 100 = 83.33%
How abandoned carts impact your eCommerce store?
Shopping cart abandonment has a huge impact on the profit of your e-commerce store. These are buyers who were interested in the items but yet abandoned their cart due to certain reasons and most of them are avoidable with the right decisions.
- Loss of customers and sales
- Competition
- Slows down sales
- Loss in revenue
Every store has lost many shoppers from their website but very few analyze the checkouts to improve the experience and improve their checkouts.
Cart Abandonment Solutions
To tackle cart abandonment, it's crucial to implement effective solutions that can assist you in recovering those potential sales. Here are some tried-and-tested solutions that you can consider for starting an e-commerce business:
1. Remarketing campaigns: By using targeted ads and personalized messages, you can easily connect with customers who have left their carts and kindly remind them to complete their purchases. This can be achieved through various retargeting channels, such as email marketing, social media advertising, or even display ads.
2. Abandoned cart recovery emails: We can send automated emails to customers who have left items in their carts. This is a powerful way to kindly remind them to come back and complete their purchase. These emails can include special offers, discounts, or incentives to encourage customers to take action.
Konigle provides a human-powered SMS abandoned cart recovery tool for your online store. Konigle's approach to recovering your carts is very simple, our human agents engage buyers who have shopping abandoned carts on your online store, by chatting with them over an abandoned cart email and SMS.
3. Simplifying the checkout process: We totally understand that a complicated or lengthy checkout process can sometimes discourage customers from completing their purchases. That's why we recommend streamlining and simplifying the steps needed to finish a transaction.
By doing this, you'll be able to reduce any unnecessary friction and make it super easy for your customers to convert.