Abandonment rate

In marketing, abandonment rate is a term associated with the use of virtual shopping carts. Also known as "shopping cart abandonment". Although shoppers in brick and mortar stores rarely abandon their carts, abandonment of virtual shopping carts is quite common. [citation needed][1] Marketers can count how many of the shopping carts used in a specified period result in completed sales versus how many are abandoned. The abandonment rate is the ratio of the number of abandoned shopping carts to the number of initiated transactions[2] or to the number of completed transactions.[3][4]

Around 10 sources of information are used before making a decision when buying online (e.g. webshops, review websites, social networks, and the like).[5] In this process the shopper compares at least 5 different websites for the product, and spends up to 20 hours researching.[6] This means that shopping online is not as easy as some predicted 20 years ago.[5]

From both business and scientific perspectives, researchers and practitioners have investigated the problem of online shopping abandonment, trying to understand and address the causes of such low conversion rates.[7][8][9][10][11][12][13] They mostly agree that the biggest problems, for online cart abandonment were: lack of transparency, unclear transaction and delivery costs, lack of trust in the online seller, and poor website functioning or complicated processes.

  1. ^ Zhao, Haichuan; Wang, Xuehua; Jiang, Lan (2021-08-01). "To purchase or to remove? Online shopping cart warning pop-up messages can polarize liking and purchase intention". Journal of Business Research. 132: 813–836. doi:10.1016/j.jbusres.2020.10.067. ISSN 0148-2963.
  2. ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-2. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language in Marketing Project.
  3. ^ "Improve e-commerce". netsuite.com.
  4. ^ American Marketing Association Dictionary. "Dictionary". Archived from the original on 2012-11-21. Retrieved 2012-11-29.. Retrieved 2012-11-29. The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoing Common Language in Marketing Project.
  5. ^ a b Muster, R. F. (2016). Online shopping abandonment rate a new perspective: the role of choice conflicts as a factor of online shopping abandonment (Master's thesis, University of Twente).
  6. ^ (Google and Ipsos MediaCT, 2014)
  7. ^ (Egeln & Joseph, 2012
  8. ^ Google, 2014
  9. ^ Henneberry, 2012
  10. ^ Kukar-Kinney & Close, 2010
  11. ^ Moshrefjavadi, Dolatabadi, Nourbakhsh, Poursaeedi, & Asadollahi, 2012
  12. ^ Statista, 2015
  13. ^ Xu & Huang, 2015