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Ecwid Ecommerce Glossary

Abandoned Cart

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What is abandoned cart?

Abandoned cart is an e-commerce expression describing a situation when a store visitor leaves the purchasing process before completing it.
If you visit an online store, add products to the cart (or basket) and close the website — you abandon the cart.

Why tracking abandoned carts is important

  1. The visitors that added products to the cart had the intention to buy them or part of them. But something didn’t let them complete the process. Perhaps, something distracted them in the material world (family, work, phone call), but it could also be something wrong with your online store.
  2. Tracking the abandoned carts helps you find the weak spots in the a sensitive process of completing the purchase. Also, if you keep an eye on the abandoned carts you can remind your customers about them and increase the revenue.

How much do I lose with abandoned carts?

88.05 percent of online shoppers abandon their carts. This means that you need to generate 100 visits to complete 22 purchases.

Say, if one item that you sell costs $100 you will be earning $2,200 losing $8,800. At the same time, each generated visit costs money. The customer acquisition cost (or CAC) is different for each niche and can go as low as $5 and as high as $1,000. It’s calculated from the money spent on advertising, generating traffic, and actual purchases.

Example: It costs $500 to run ads on Instagram and generate 1,000 visits. With an average conversion rate at 2%, this traffic will give you complete 40 purchases. With the cost of $100 per item, you will earn $4,000 which is $3,500 of the revenue. But!

Considering the abandonment rate, these 40 purchases are just 22 percent of those who added the product to the cart. If we could complete all potential purchases that would result in 182 items sold for the amount of $18,200. Your revenue could be $17,700.

In our fictional case, you’ve lost $14,200.

How do you recover an abandoned cart?

Read a comprehensive guide on how you can increase the revenue by recovering the abandoned carts with Ecwid.

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