Abandoned cart rate (AC rate) should be a major concern for anyone who owns/runs an online shop.
Global research indicates that more than 70% of online transactions fail due to a customer abandoning their cart. Barilliance provided some stats which you can find here.
An abandoned cart event happens when a customer creates a cart but does not complete the physical purchase of the product or service.
This statistic is important since driving traffic to your store costs money. When paid traffic does not convert to sales it essentially reduces the return on your marketing spend which affects the profitability of your store negatively.
How to calculate your AC rate.
AC rate is simple to calculate and is reflected as a ratio.
- Is inclusive of your successful sales and
- are carts with at least one item in them.
The above equation will give you a percentage (%) figure.
As an example:
Store ABC had 40 sales in the month of April 2019. During the same period (April 2019) Store ABC had 200 carts created.
Which equates to an AC rate of 80%. In effect, this translates to 80% of potential shoppers that selected an item to purchase but never completed the purchase. An AC rate above 75% is dangerously high. You can make more money here.
Over the next couple of weeks, we will be covering abandoned cart rate in more detail. Firstly we will unpack the main drivers of abandoned cart rate and share some initiatives on how to counter them. We will share some nifty tools that you can utilize in order to track your AC rate effectively.
Lastly, we will show how a reduction in AC rate impacts your store’s profitability, which in turn impacts you as the owner of the business.
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Jaco Marais is the Co-Founder of Woocrew.