What is Cart Abandonment Rate, and how do you calculate it?
In short – Percentage of shopping carts created but not converted into purchases. A key marketplace metrics you should track.
Cart Abandonment Rate Formula
Cart Abandonment Rate = (Number of Carts Abandoned ÷ Number of Carts Created) × 100%
Cart Abandonment Rate measures how often customers add items to their cart but do not complete the purchase. It highlights potential issues in the checkout process.
Reducing cart abandonment can significantly increase sales. Causes may include unexpected costs, complicated checkout, or lack of payment options. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement.
How can you find your Cart Abandonment Rate?
You should generally be able to calculate your Cart Abandonment Rate with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.