The Cost of Abandoned Carts: What Shopify Businesses Need To Know

Hussam AlMukhtar

Dec 18, 2024

You've worked hard on your Shopify business — fine-tuning your product pages, optimizing for SEO, and maybe even investing in ads. But despite all your efforts, a frustrating pattern keeps emerging: shoppers add items to their carts and leave without completing the purchase. Every time it happens, it's not just a missed sale — it's revenue slipping away. But it's also something else: a signal that something could be wrong with your checkout process, return policy, or pricing.

Abandoned carts lower your conversion rates, inflate your customer acquisition costs (CAC), and ultimately hurt your bottom line. But while cart abandonment is a challenge, it also presents an opportunity to understand why it happens and how to address it to recover those lost sales.

In this article, we’ll dive into some common reasons shoppers abandon their carts. We'll also outline strategies you can use to lower your abandonment rate and recover lost revenue. Whether it’s streamlining your checkout process or retargeting potential buyers, these actionable solutions will help you tackle the problem head-on and keep your brand's metrics healthy.

What is cart abandonment?

Cart abandonment is when a potential customer adds items to their shopping cart but leaves the site before completing the purchase. 

In e-commerce, cart abandonment represents a missed opportunity for conversion but doesn't just signal an incomplete transaction. Cart abandonment can point you toward underlying issues in the shopping experience, such as unexpected costs, confusing navigation, or security concerns.

Reducing cart abandonment can help you improve your conversion rates, which, in turn, helps maximize your revenue. But more than that, it creates a more seamless shopping experience that encourages customers to follow through with their purchases.

How many shoppers abandon carts online?

If you think you're alone in your struggles with cart abandonment, think again.

‍Research by Barilliance shows that rates vary depending on device, location, and industry, but on average, roughly 70% of online shoppers abandon their carts before completing a purchase. For every 10 people who add items to their carts, seven leave without buying.

Tablet and mobile device shoppers are most likely to exit a page without fully checking out:

• Desktop: 73%

• Mobile: 85%

• Tablet: 80%

And what Barilliance calls "website window shoppers" are more common for fashion, luxury, and baby and child brands, the three industries that tend to see the highest cart abandonment rates.

Why lower your cart abandonment rate?

Lowering your cart abandonment rate isn’t just about completing more sales. It’s about optimizing the entire customer journey and improving your brand's overall performance.

When fewer shoppers leave items in their carts, you recover lost revenue, strengthen customer trust, and improve your company’s efficiency. Below are key reasons to prioritize reducing your Shopify business’s cart abandonment rate.

To increase your revenue

Every abandoned cart represents potential revenue left on the table. By reducing cart abandonment, you can directly increase your sales without investing more in traffic acquisition. A small improvement in your cart abandonment rate can lead to a significant boost in revenue.

And maximizing revenue is a key part of bolstering your brand's overall financial health, which is especially important if you ever consider seeking an exit so you can build your next dream business.

To improve conversion rates

A high cart abandonment rate drags down your brand's conversion rate, making it harder to turn traffic into actual sales. By addressing the factors that cause shoppers to abandon their carts, you can improve the overall effectiveness of your sales funnel and convert more visitors into paying customers.

To reduce your customer acquisition costs

When shoppers abandon their carts, you’ve already spent resources attracting them to your business — whether through advertising, SEO, or content marketing. By recovering your abandoned carts on Shopify, you maximize your marketing spend and reduce the need for additional efforts to acquire new customers.

To build trust with your customers

Cart abandonment can sometimes indicate that shoppers are unsure about your site's security or policies. Some ways you can address those concerns include improving checkout transparency, offering clear return policies, and providing multiple payment options. 

For example, men’s clothing brand, Jack Archer, lists their exchange policy in an easy to find location (footer of the page) but also a direct link to initiating a return to cut down on the hassle. 

By taking these concerns seriously, you build trust with your customers, making shoppers more likely to complete their purchases.

To stay competitive in your industry or niche

With so many options available online, shoppers often compare brands based on price, shipping options, and overall ease of purchase. Reducing cart abandonment through simplified checkouts and transparent pricing helps encourage your customers to stick with you instead of turning to a competitor.

4 reasons people abandon their online carts

Cart abandonment is often the result of specific frustrations or doubts that arise during the shopping process. Understanding these common triggers helps you address the root causes of cart abandonment and create a smoother, more compelling customer journey. Below are the top four reasons why shoppers abandon their online carts, according to research from the Baymard Institute.

#1: Unexpected extra costs

One reason for cart abandonment is the surprise of extra costs being added at checkout. Shoppers may feel caught off guard when they see higher-than-expected totals due to shipping costs, taxes, or handling charges. Sticker shock often causes potential buyers to abandon their purchase, especially if they feel the total cost outweighs the items’ perceived value.

#2: Friction during the checkout process

A complicated or time-consuming checkout process can be a major deterrent for shoppers. Whether it’s a lengthy form, multiple steps, or needing to create an account, too much friction during checkout can cause shoppers to give up before completing the purchase. Many customers prefer a fast, streamlined experience and may leave if it feels like too much work.

#3: Wanting to research other merchants

In the competitive e-commerce landscape, shoppers often compare products and prices across multiple businesses before making a purchase decision. They might leave your site to check if they can find a better deal or faster shipping — or just to read more reviews or do more research. Even if they’re initially interested, comparison shopping can lead to abandoned carts.

#4: Security concerns

Shoppers need to feel confident that their personal and payment information will be safe when making an online purchase. If your site doesn’t clearly communicate security measures — or worse, if it seems outdated or untrustworthy — potential buyers may abandon their carts out of fear that their data could be compromised.

Plant-based supplement company, Future Kind, creates this reassurance from the get-go by adding “Secure” on the checkout button. 

7 strategies to recover abandoned Shopify carts

Actively recovering lost sales from abandoned carts requires strategic thinking. Below are seven actionable tactics to help you win back potential customers who didn’t complete their purchase, driving your Shopify brand's revenue back up.

1. Use a trustworthy e-commerce platform

Using a reliable platform like Shopify gives customers confidence in your brand's security and stability. 

When browsing notebooks and pens on Baronfig, you can see “Ecommerce by Shopify” on the footer of every page. 

A trusted platform provides built-in security features like SSL certificates, PCI compliance, and fraud prevention, all of which help establish customer trust. When shoppers feel safe entering their payment information, they’re more likely to complete their purchase.

Tip: Display trust badges prominently throughout your site, particularly on checkout pages. Make sure your site is SSL secured (which Shopify handles) and clearly communicate your commitment to data protection and security.

2. Eliminate unexpected fees

Unexpected costs at checkout can cause shoppers to make a sudden U-turn. By eliminating or clearly communicating additional fees like shipping, taxes, and handling charges upfront, you can prevent shoppers from feeling blindsided and reduce abandonment rates.

Tip: Offer free shipping when possible, or use a shipping calculator on product pages to give customers an idea of the total cost early on. Be transparent about taxes and fees, or consider bundling them into the product price for a more straightforward experience.

3. Accept alternative payment options

Not all shoppers want to pay with credit cards. Offering alternative payment options can help customers find a method that works for them, which can reduce the friction that leads to cart abandonment. Options like PayPal, Apple Pay, Google Pay, and even Buy Now, Pay Later (BNPL) solutions like Klarna give your customers the convenience they want when shopping online.

‍Tip: Integrate multiple payment methods into your checkout process. Shopify Payments makes this easy, and you can add other popular options like PayPal and BNPL tools to accommodate the wide range of customer preferences.

4. Optimize your checkout experience

The more steps or fields a customer has to fill out, the more likely they are to get frustrated and leave. Streamlining the checkout process can help reduce abandonment and boost conversions.

‍Tip: Use Shopify’s one-page checkout or guest checkout options to simplify the process. Reduce the number of fields required, use auto-fill for address details, and remove unnecessary steps. Also, make sure your checkout page is mobile-friendly, as more and more shoppers complete purchases on their smartphones and other mobile devices.

5. Make your return policy easy to find

Shoppers want to feel confident in their purchase, and a clear, easy-to-find return policy can give them peace of mind. If customers don’t know they can return items easily, they may abandon their cart because they’re not ready to commit. A visible, straightforward return policy can reduce hesitation and encourage them to follow through with their order.

‍Tip: Place links to your return policy on product pages and throughout the checkout process. Keep the language simple, and be transparent about the conditions for returns, refunds, and exchanges. Highlight any free returns or easy processes to reduce friction for the customer.

6. Retarget shoppers who abandon their carts

If a customer leaves your site with items in their cart, it’s not the end of the road. Retargeting allows you to re-engage these shoppers and remind them of the items they left behind. Tools like retargeting ads and exit-intent pop-ups can help nudge them back to complete the purchase.

‍Tip: Use exit-intent pop-ups to offer a discount or remind customers of items in their cart when they’re about to leave your business. Implement retargeting ads on Facebook or Google to show customers the products they were considering. Offering limited-time discounts or free shipping in your ads can provide the extra push they need to come back and buy.

7. Write great abandoned cart emails

Abandoned cart emails are targeted follow-up messages that remind customers of the items they left behind. Consider including incentives like discounts or free shipping, or give shoppers a sense of urgency to complete their purchase. The key is crafting emails that are timely, personalized, and persuasive.

‍Tip: Set up automated abandoned cart email sequences using Shopify’s built-in tools or third-party apps. Send the first email within a few hours after a customer abandons their cart — and follow up with reminders if needed. Personalize the email by including images of the items left in the cart and use urgency or limited-time offers to create a sense of FOMO (fear of missing out).

Frequently asked questions about Shopify cart abandonment

What is a good cart abandonment rate?

Cart abandonment rates can vary depending on the industry, but a typical rate hovers around 70%. While this may seem high, reducing it by even a small percentage can lead to significant revenue gains. A "good" cart abandonment rate is relative to your business. Aim to hit below the industry average by optimizing your checkout process, offering transparent pricing, and using retargeting strategies.

What’s the best time to send Shopify abandoned cart emails?

Timing is crucial when it comes to sending Shopify abandoned cart emails. Research shows that the first email should be sent within one to three hours after the cart is abandoned. This keeps your company fresh in the customer’s mind and increases the chances of recovery. Follow-up emails can be sent over the next 24 to 72 hours, offering gentle reminders and, if appropriate, incentives such as discounts or free shipping to encourage completion of the purchase.

How can reducing cart abandonment help your brand succeed in the long-term?

Reducing cart abandonment can have long-lasting benefits for your Shopify business. Minimizing abandoned carts can help you recover lost revenue and improve your brand's overall conversion rate and customer experience. Fewer abandoned carts means lower customer acquisition costs, higher customer satisfaction, and improved brand trust — all of which contribute to the long-term success of your brand. If you’re ever considering selling your Shopify business to pursue new ventures, these metrics can be key in getting the valuation you're looking for. 

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