How to Limit Cart Abandonment: A Merchant’s Guide
Problems with E-commerce Cart Abandonment
Cart abandonment is one of the most common and costly issues in ecommerce. It occurs when a customer adds items to their shopping basket but leaves the website without completing the purchase. For merchants, this represents lost revenue, wasted marketing spend, and reduced customer lifetime value.
While some abandonment is inevitable, high rates are often a symptom of underlying issues in the user experience, checkout process or payment infrastructure. In this guide, we explore the root causes of cart abandonment, provide a detailed breakdown of how to calculate your abandonment rate, and share practical strategies to reduce it.
What Is Cart Abandonment?
Cart abandonment refers to when a shopper places one or more items in their online shopping basket but does not finalise the transaction. It differs slightly from checkout abandonment, which occurs after the customer has begun the checkout process but exits before completing payment.
Both are significant concerns. The average cart abandonment rate across ecommerce businesses hovers around 70%, meaning that for every 10 customers who show intent to purchase, only 3 complete the transaction. Understanding and reducing this number can directly impact your bottom line.
Why Does Cart Abandonment Happen?
There are many reasons why shoppers abandon their purchases, and they often relate to the final stages of the customer journey. Below are the most frequent causes:
1. Unexpected Costs
The most cited reason for cart abandonment is surprise fees at checkout. Delivery charges, taxes, or service fees added late in the process can make customers feel misled and cause them to abandon their basket.
2. Complicated Checkout Process
A multi-page or lengthy checkout process can deter even motivated buyers. Repeated form-filling, forced account creation, or hard-to-navigate steps increase friction and decrease the likelihood of completion.
3. Limited Payment Options
Not all customers use debit or credit cards. Failing to provide alternative methods such as PayPal, Apple Pay, or bank transfers can result in abandonment.
4. Security Concerns
Trust is crucial. If customers don’t feel confident that their payment information is secure, they won’t proceed. Missing SSL certificates, outdated site design, or lack of visible security badges can trigger drop-off.
5. Technical Issues or Poor Performance
A slow website, glitches, or unresponsive buttons—especially on mobile—can disrupt the checkout process. Customers expect a fast and seamless experience across devices.
6. Unclear Returns Policy
Uncertainty around returns, refunds, or exchanges makes customers more risk-averse. If your policy is hard to find or unclear, it may discourage purchases.
7. Out-of-Stock Items
Allowing customers to add unavailable products to their basket only for them to encounter stock issues at checkout leads to frustration and lost trust.
8. Distractions or Comparison Shopping
Many shoppers use baskets to save items for later or while comparing prices. If there is no follow-up strategy, this behaviour often results in incomplete purchases.
How to Calculate Your Cart Abandonment Rate
Cart abandonment rate is a key performance indicator (KPI) in ecommerce. Here’s a step-by-step method for calculating it:
Formula:
Cart Abandonment Rate = (1 - [Number of Completed Transactions / Number of Shopping Carts Created]) x 100
Example: Suppose your site had 1,000 shopping carts created last month and 300 completed transactions.
- 300 ÷ 1,000 = 0.30
- 1 - 0.30 = 0.70
- 0.70 x 100 = 70% cart abandonment rate
This means 7 out of every 10 customers left without completing a purchase. Once you know your rate, you can track it over time and measure the impact of improvements.
Strategies to Reduce Cart Abandonment
Reducing abandonment requires optimising your checkout process and removing sources of friction. Here are some tactics that address specific causes:
1. Display Transparent Pricing Early
Be upfront about delivery charges, taxes, and any other fees. Display estimated delivery costs on product pages or allow customers to calculate them in the basket. Consider offering free delivery thresholds to incentivise larger orders.
2. Streamline the Checkout Process
Simplify and shorten the number of steps. Enable auto-fill for address and payment fields. Allow guest checkout to avoid forcing account creation. Show progress indicators so users know how many steps are left.
3. Provide a Wide Range of Payment Options
Support digital wallets, bank transfers, and instalment services. This flexibility increases the likelihood that customers will find a method that suits them, reducing dropout during payment.
4. Build Trust Throughout the Checkout
Use SSL encryption and display trusted payment logos and security badges. Reinforce trust with customer reviews, testimonials, and return guarantees near the checkout.
5. Improve Mobile Optimisation
Ensure your site is fully responsive across mobile and tablet devices. Use large clickable buttons, fast-loading pages, and easy-to-navigate layouts. Many users abandon their baskets due to mobile usability issues.
6. Offer Clear Return and Refund Policies
Display your policies clearly on product and checkout pages. Consider offering free or easy returns to reduce purchase hesitation. Outline timeframes, accepted conditions, and refund procedures.
7. Maintain Accurate Inventory
Use real-time stock updates to prevent customers from adding out-of-stock items. Provide back-in-stock notifications or allow customers to pre-order items to preserve intent.
8. Enable One-Click Checkout for Returning Users
Store payment details securely using tokenisation. Allow repeat customers to checkout in one step, increasing conversion rates and reducing friction.
9. Use Retargeting Campaigns
Send abandoned cart emails or SMS reminders that highlight the products left behind. Include images, personalised messaging, and limited-time discounts to prompt action.
10. Provide Live Chat Support
Offer real-time assistance during checkout. Live chat can answer last-minute questions or resolve technical issues before a customer gives up.
11. Remove Unnecessary Distractions
Keep the checkout clean and focused. Avoid pop-ups or unnecessary prompts. If offering discount codes, embed them automatically rather than asking customers to search externally.
What Is a Healthy Cart Abandonment Rate?
While abandonment rates vary by industry and product type, a rate below 60% is considered healthy. Most ecommerce sites experience a rate between 60% and 80%.
Benchmark your performance against your sector and focus on continuous improvement rather than perfection. Even a small reduction in abandonment can have a significant impact on sales and profit margins.
How the Payments Directory® Can Help
One of the most effective ways to reduce cart abandonment is by choosing the right payments partner. Whether you're looking to support new payment methods, enable one-click checkout, or reduce failed transactions, your provider must align with your goals.
The Payments Directory® helps merchants compare and select providers based on integration options, payment methods, pricing, and sector experience. It includes filters to help you find platforms with features such as mobile optimisation, fraud prevention, and open banking compatibility.
Using the directory saves time, improves your payment infrastructure, and helps create a checkout experience that converts. For merchants serious about reducing abandonment, it's a valuable tool for making informed, long-term decisions.
