What is Checkout Abandonment?
Checkout abandonment occurs when a customer begins the checkout process on an e-commerce website but exits before completing their purchase. Unlike cart abandonment (where items are added but checkout never starts), checkout abandonment represents the loss of a high-intent customer who has already committed to buying.
Checkout Abandonment vs Cart Abandonment
| Type | Definition | Average Rate | Intent Level |
|---|---|---|---|
| Cart Abandonment | Items added to cart, checkout never started | 70% | Medium |
| Checkout Abandonment | Checkout started but not completed | 25% | High |
| Payment Abandonment | Payment form reached but not submitted | 13% | Very High |
Because checkout abandoners have shown explicit purchase intent, they convert at 2-3x higher rates than cart abandoners when recovered.
Why Customers Abandon Checkout
Based on research from the Baymard Institute and our internal data:
- Unexpected costs (48%) - Shipping, taxes, or fees added at checkout
- Account creation required (24%) - Being forced to register before purchase
- Complicated checkout (17%) - Too many form fields or steps
- Payment concerns (15%) - Lack of trust signals or security badges
- Website errors (12%) - Technical issues or slow loading
- Delivery concerns (9%) - Shipping takes too long or is unclear
- Poor return policy (7%) - Concerns about returns or refunds
- Limited payment options (6%) - Preferred payment method unavailable
How to Calculate Checkout Abandonment Rate
Use this formula:
Checkout Abandonment Rate = (Checkouts Started - Checkouts Completed) / Checkouts Started × 100
Example: If 1,000 customers started checkout and 750 completed their purchase:
- (1,000 - 750) / 1,000 × 100 = 25% checkout abandonment
The True Cost of Checkout Abandonment
For a store with:
- 5,000 monthly checkout initiations
- $120 average order value
- 25% checkout abandonment rate
Monthly lost revenue: $150,000
Recovering even 15% of these abandonments represents $22,500 in monthly recovered revenue.
Checkout Abandonment Recovery Strategies
1. Exit-Intent Popups
When a user's cursor moves toward leaving the page, display:
- Cart saver option ("We'll email you your cart")
- Small incentive (5% off, free shipping)
- Reassurance message ("Don't worry, your items are saved")
2. Recovery Email Sequences
The gold standard for checkout recovery:
Email 1 (1-4 hours): Helpful reminder
- "Your order is almost complete"
- Show items, include direct checkout link
Email 2 (24 hours): Add value
- Social proof or product benefits
- Answer common questions
Email 3 (48-72 hours): Create urgency or offer incentive
- Limited-time discount
- Low stock warning (if genuine)
3. Retargeting Ads
For shoppers who don't respond to email:
- Dynamic ads showing abandoned products
- Cap frequency to avoid ad fatigue
- Exclude already-converted customers
Prevention: Reduce Checkout Abandonment Before It Happens
Optimize Checkout Flow
- Reduce steps (single-page checkout when possible)
- Use progress indicators
- Allow guest checkout
- Auto-fill addresses (Google Address Autocomplete)
Be Transparent About Costs
- Show shipping costs on product pages
- Display tax estimates before checkout
- Offer free shipping thresholds
Build Trust
- Display security badges prominently
- Show real customer reviews
- Provide clear return/refund policy
- Use HTTPS and display the padlock
Offer Payment Flexibility
- Multiple payment methods (cards, PayPal, Apple Pay)
- Buy Now, Pay Later options (Klarna, Affirm)
- Easy-to-complete forms
Measuring Checkout Abandonment Success
Track these metrics monthly:
| Metric | Formula | Good Target |
|---|---|---|
| Checkout Abandonment Rate | (Started - Completed) / Started | Below 20% |
| Email Recovery Rate | Recovered / Sent Emails | Above 5% |
| Revenue Recovered | Sum of recovered orders | Track trend |
Conclusion
Checkout abandonment represents your highest-intent lost customers. With strategic recovery emails and checkout optimization, you can recover significant revenue while improving overall conversion rates.
The key is acting fast—recovery rates drop by half every 24 hours—and providing a seamless path back to checkout completion.
Ready to recover checkout abandoners automatically? Try Retake free for API-first checkout recovery.