What is checkout abandonment?
Checkout abandonment is what happens when a shopper doesn’t finish their purchase after starting the checkout process. You can calculate the checkout abandonment rate by dividing the total number of completed transactions by the total number of started transactions.
What is the checkout abandonment rate and why is it important to track?
Checkout abandonment rate is the percentage of people who add items to their shopping cart but don’t complete the purchase. This metric is important to track because it can help you identify areas of your website or checkout process that may be causing customers to leave without completing a purchase. By understanding why customers are abandoning their carts, you can make changes to improve your conversion rate and increase sales.
How to calculate checkout abandonment rate
To calculate the checkout abandonment rate, divide the conversion rate (the total number of completed transactions) by the number of initiated checkouts, subtract it from 1, and multiply it by 100. This gives you the inverse of the checkout conversion rate.
For example, if your conversion rate is 10% and you have 100 initiated checkouts, your abandonment rate would be:
(1 – (10/100)) x 100 = 90%
Checkout Abandonment Rate = 1 – (# of orders completed / # of checkouts initiated) x 100
The Checkout Abandonment Rate is a good way to measure how many potential customers are leaving your site without completing a purchase. You can calculate it by taking the number of orders completed and dividing it by the number of checkouts initiated, then multiplying that by 100.
This will give you the percentage of customers that are abandoning their purchase after initiating checkout. You can use this information to draw conclusions about the average order value lost, potential lost revenue due to abandonment, and how much ROI could be recaptured by reducing abandonment rates.
To get the most accurate picture, you should segment your data by user persona, traffic source, and device information. This will help you identify struggling areas and develop strategies to reduce abandonment and lost revenue.