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Module 1 of 10 · eCommerce Conversion Optimization

The 70% Problem

⏱ 30 min · After completing this module, you'll be able to benchmark your cart abandonment rate against Baymard's reference point of around seventy percent, convert every percentage point of abandonment into concrete euro opportunity cost, and make the case for why checkout, mobile, and retention are stronger levers than additional ad spend.
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The 70% Problem

Why most carts never convert, and why that's your biggest growth opportunity.

One Hundred Carts Seventy Abandonments Thirty Purchases
The average eCommerce checkout loses seventy out of every hundred shoppers
Transcript of this slide

Welcome to the first module of the eCommerce Conversion Track. I want to open with a number that never stops getting my attention: seventy percent. That's the share of shopping carts that, on average, never result in a purchase in online retail. Imagine that in your physical store, seventy out of a hundred customers put their items back at the register and walk out. That's exactly what's happening online, except nobody tells you to your face. In this module, I'll show you why that abandonment rate isn't inevitable. It's actually the biggest untapped growth opportunity in your shop. Because every percentage point you win back here is direct, incremental revenue, with no additional ad spend required.

Learning objective

What you'll learn in this module

You'll understand the current Baymard benchmark and know how your shop measures up against it.

  • You'll convert cart abandonment rates into real euro opportunity costs.
  • You'll prioritize checkout, mobile, and retention as your most powerful levers.
1
Understanding the Benchmark
2
Calculating the Revenue Potential
3
Prioritizing the Levers
Transcript of this slide

By the end of this module, you'll have three concrete skills. First, you'll be able to interpret the Baymard benchmark for your shop and judge whether you're above or below the industry average. Second, you'll translate abandonment rates into real euros, which is a key skill when you need to make the internal case for optimization budgets. Third, you'll know how to prioritize the three levers that deliver the biggest impact in almost every shop: the checkout itself, the mobile experience, and ongoing customer retention. That foundation sets you up for everything that follows in the next modules.

Self-check

Quick self-check

What would you estimate the average cart abandonment rate to be in eCommerce?

  • What does an abandoned cart actually cost you, beyond the lost revenue?
Key Points

Quick self-check

  • 1 What would you estimate the average cart abandonment rate to be in eCommerce?
  • 2 What does an abandoned cart actually cost you, beyond the lost revenue?
Transcript of this slide

Before we get into the data, two quick questions to consider. Take a moment and estimate: how many carts go unpurchased on average? Then take it one step further. Even if the revenue is gone, what did that customer already cost you before they left? That second question takes us straight to the core economic calculation. There's no right or wrong answer here, just an honest look at where things stand. And that honest look is exactly the starting point we want to work from.

What this means for you

What does this mean for your shop?

Every abandonment rate above the industry average is a measurable competitive disadvantage.

  • You already paid to acquire that customer. A lost conversion means you're paying twice.
  • Conversion optimization recovers revenue from your existing traffic, without needing additional budget.
Reducing abandonment vs. buying more traffic
Transcript of this slide

The practical value here for you as a shop decision-maker is enormous. If you don't know your abandonment rate, you're flying blind. If you do know it, you can set priorities. Because the customer who abandoned isn't some random visitor. They had already shown purchase intent by adding something to their cart. You acquired them through SEO, ads, email, or content. That money is already spent. When they leave now, the loss hits twice: the revenue you didn't make plus the acquisition costs you already incurred. That's exactly why focusing on conversion pays off more than buying the next round of traffic.

Concept

The Baymard Benchmark

The Baymard Institute analyzed more than 100,000 checkout flows and found an average abandonment rate of around 70%.

  • This isn't an outlier. It's the documented industry average, consistent across many years and many sectors.
  • Any shop performing significantly below that figure has a measurable competitive advantage.
Abandoned 70 (70%) Purchased 30 (30%)
Average cart abandonment rate per Baymard Institute
Transcript of this slide

The Baymard study is the most frequently cited data point in eCommerce. It's built on massive datasets spanning multiple industries, and it shows that nearly 70% of all carts go unpurchased. This isn't a temporary blip or a measurement error. Shops that come in below that number are converting better than the market. Shops that land well above it are leaving money on the table every single month, and not just the lost revenue but also the costs already spent to bring that visitor in. I use this benchmark in almost every initial conversation because it immediately shows where the opportunity lives.

Concept

What 70% abandonment really means

Out of a hundred customers who add an item to their cart, only thirty actually buy it.

  • Seventy prospects leave the checkout after already signaling purchase intent.
  • These visitors were hard-won through SEO, paid ads, email, and content.
One Hundred Carts Seventy Abandonments Thirty Purchases
One hundred shopping carts result in only thirty paid orders
Transcript of this slide

Imagine seventy out of a hundred customers in your brick-and-mortar store putting their items back at the register and walking out. That's exactly what happens online, except nobody tells you to your face. The shopping cart is the moment of highest purchase intent. Someone who abandons at this point wasn't a random visitor; they were a hot lead. That's precisely what makes this stage so valuable: you've already paid to acquire that customer, regardless of the channel. Every percentage point you recover is especially valuable because you're pulling it from traffic you've already paid for.

Example

Example: A shop with €50,000 in monthly revenue

The shop generates €50,000 in revenue from 1,000 paid orders at €50 each.

  • At a 70% abandonment rate, that means 3,333 carts made it to checkout.
  • Each percentage point recovered equals roughly €1,650 in additional monthly revenue.
One percentage point less abandonment = just under €20,000 more per year
Transcript of this slide

A concrete example puts the potential in perspective. A shop with €50,000 in monthly revenue, an average order value of €50, and a 70% abandonment rate had 3,333 carts. Drop the abandonment rate by just one percentage point and you get 33 additional purchases, which works out to around €1,650 in extra monthly revenue, or just under €20,000 per year. No extra traffic, no extra budget. This is the moment shop owners realize that conversion optimization isn't a design question; it's an economic one.

Concept

The Opportunity Cost of Abandonment

Opportunity cost is the revenue you've already paid for but never collected.

  • Every abandoned cart burns acquisition costs with nothing to show for it.
  • Reducing abandonment effectively improves your return on ad spend.
28 56 83 111 100 Paid Visitors 30 Become Buyers
Out of ten paid visitors, only three actually buy
Transcript of this slide

Opportunity cost is the hidden killer. You pay for ten clicks and get three purchases. The other seven clicks are sunk costs, unless you win them back later. Reducing abandonment doesn't just boost revenue; it improves the efficiency of your entire marketing mix. That's why conversion optimization raises return on ad spend over the long term. In my own projects, I consistently see shops come out of three months of CRO work with significantly better ROAS, without changing a single bid in the ad account.

Concept

Why your existing traffic is the bigger lever

More traffic at the same conversion rate only eats into your margin and piles on cost pressure.

  • Your current visitor stream already contains people who want to buy; they just need to be convinced.
  • CRO works with the traffic you have today, not the traffic you'll buy tomorrow.
More traffic vs. better conversion
Transcript of this slide

A lot of shop owners keep buying new traffic every month instead of making their existing traffic more profitable. The lever is in the checkout, not in the ad account. More traffic at the same conversion rate means you're pumping more water through the same pipe. Conversion optimization widens the pipe. And that effect hits every channel at once: SEO, paid ads, email, social, direct. My consistent recommendation: fix your conversion rate before you increase your traffic budget. The order you do things in is what separates growing margins from growing frustration.

Concept

The Mobile Multiplier

Around 60 to 70% of e-commerce traffic comes from mobile devices.

  • Mobile conversion rates are often 30 to 50% below desktop figures.
  • A poor mobile checkout makes the 70% problem even worse.
1 3 4 5 3.8 Desktop Conversion Rate in PercentDesktopConversion R… 2.1 Mobile Conversion Rate in PercentMobileConversion R…
Typical conversion gap: desktop vs. mobile
Transcript of this slide

Sixty to seventy percent of your visitors are on their phones. When mobile conversion drops, your overall marketing ROI drops with it, regardless of what your desktop numbers look like. In many shops, the mobile conversion rate runs well below the desktop rate. That's usually not a traffic problem; it's a UX problem: too many fields, buttons that are too small, load times that are too long. Taking the mobile checkout experience seriously is where the biggest gains are. I've worked with shops that generated more revenue purely from optimizing their mobile checkout page than from a complete desktop homepage redesign.

Concept

The Retention Multiplier

A customer who has already bought from you is far cheaper to win back than a new customer.

  • Improving your checkout doesn't just increase your first sale; it also grows the number of repeat customers.
  • When you factor in lifetime value, every abandonment you prevent becomes even more valuable.
1
Fix the Checkout
2
More First-Time Purchases
3
More Repeat Purchases
4
Higher Lifetime Value
Transcript of this slide

The checkout is the gateway to your customer relationship. Win here, and you win twice: once on the first purchase, and again on every repeat purchase. A customer who has already bought from you costs significantly less to re-engage than a brand-new customer. That's why looking at checkout abandonment alone only tells half the story. The full story is lifetime value: every abandonment you prevent is potentially a customer who keeps coming back. In that sense, improving your checkout is an investment in your customer base, not just in next month's revenue.

Scenario

Scenario: Shop A vs. Shop B

Both shops have ten thousand visitors per month and an average order value of eighty euros.

  • Shop A has a conversion rate of two percent, Shop B has three percent.
  • That's sixteen thousand euros in additional revenue per month, with the same traffic and the same budget.
Ten thousand visitors times eighty euros: two versus three percent conversion
Transcript of this slide

A simple comparison shows the power of conversion. Two shops, identical traffic, identical order value, identical budget. Shop A converts at two percent, Shop B at three percent. That one percentage point difference means two hundred additional orders per month and sixteen thousand euros more in revenue. It shows how much faster conversion optimization works than opening a new traffic channel. And the best part: the effect repeats every single month. It's not a one-time win, it's a permanent improvement to your economics.

Concept

The Revenue Impact Calculation

Formula: revenue equals visitors times conversion rate times average order value.

  • When two factors stay constant, the conversion rate determines revenue.
  • Improving your conversion rate has an immediate effect on all your traffic.
1
Visitors
2
times Conversion Rate
3
times Order Value
4
equals Revenue
Transcript of this slide

Keep this formula in mind: revenue equals visitors times conversion rate times average order value. When visitors and order value stay constant, conversion rate is the deciding lever. And the key advantage: an improvement in conversion rate applies to every single visitor you already have. You don't need to wait for new markets or free up more budget. That's exactly why I love this calculation. It turns what looks like a soft design question into a hard economic decision.

Example

The calculation: one percentage point less abandonment

Starting point: five thousand checkout visits, seventy percent abandonment, one thousand five hundred purchases at eighty euros each.

  • After reducing abandonment to sixty-nine percent: one thousand five hundred and fifty purchases.
  • Additional revenue: four thousand euros per month, or forty-eight thousand euros per year.
34100 68200 102300 136400 120000 Before(Annual) 124000 After(Annual)
Additional annual revenue from one percentage point less abandonment
Transcript of this slide

In this example, just one percentage point less abandonment translates to nearly fifty thousand euros in additional revenue per year. That might sound small, but it isn't. Small checkout improvements have a large financial impact because they repeat every month. Unlike a one-time traffic purchase, a better conversion rate keeps paying off. I haven't seen a single shop where this calculation didn't hold up, as long as the baseline numbers are honest and abandonment rates are analyzed separately by device and traffic source.

Concept

The True Cost of Paid Traffic

Every additional click gets more expensive as your budget grows. That's the law of diminishing returns.

  • At seventy percent abandonment, you're paying for ten clicks to get three purchases.
  • CRO reduces your effective acquisition costs without raising your bids.
1 2 3 4 1.2 Quarter One 1.8 Quarter Two 2.5 Quarter Three 3.4 Quarter Four
Rising cost per click as budget grows
Transcript of this slide

More budget doesn't mean proportionally more customers. At some point, every new click gets more expensive. That's the economics of diminishing returns. If you're paying for ten clicks and only getting three purchases, every additional click will keep eating into your margin. Conversion optimization breaks that cycle by getting more out of the traffic you already have. It reduces your effective acquisition costs without having to raise your bids. That's why I often describe conversion optimization as the better ROAS lever.

Concept

CAC vs. CRO: A Fair Comparison

Customer acquisition cost rises as markets get more expensive and audiences get saturated.

  • Conversion rate optimization makes use of traffic you've already paid for.
  • The break-even on CRO investment often arrives within just a few weeks.
CAC: pay more. CRO: get more out of what you have.
Transcript of this slide

CAC and CRO aren't opponents, but their economic logic is fundamentally different. CAC buys new demand. CRO uses existing demand. As markets get more expensive, CAC rises automatically. CRO, on the other hand, works with the traffic you've already paid for. That's why conversion optimization often pays for itself within just a few weeks, while a new traffic channel can take months to become profitable. When I'm planning with clients, I always look at the conversion rate first before we talk about increasing budgets.

Exercise

Your Quick Exercise: The Abandonment Audit

Open your analytics and write down three numbers: cart abandonment rate, mobile conversion rate, and average order value.

  • Calculate: what would one percentage point less abandonment be worth in euros?
  • Write down the result. We'll come back to it in the next modules.
1
Find Your Abandonment Rate
2
Find Your Mobile Conversion Rate
3
Note Your AOV
4
Calculate the Potential
Transcript of this slide

Do this now. Those three numbers will tell you more about your growth potential than any trend report. Start with your cart abandonment rate, then add your mobile conversion rate and your average order value. Next, calculate what one percentage point less abandonment would mean in euros. That number is your personal potential, and the foundation for every decision you make in this track. Take about twenty minutes for this. Honest numbers are the foundation of any good optimization.

Common misconception

Common mistakes when analyzing abandonment

Mistake one: looking at abandonment rates in isolation, without factoring in order value and traffic source.

  • Mistake two: using benchmarks as an excuse, saying 'that's normal for us.'
  • Mistake three: combining mobile and desktop numbers and hiding the mobile gap in the process.
Avoid isolation, excuses, and blending
Transcript of this slide

These three mistakes cost money, consistently. Good analysis separates by device, source, and order value. That's the only way to find the real lever. If you say 'that's normal for us,' you're confusing average with optimal. And if you're combining mobile and desktop, you're often hiding a massive mobile optimization opportunity. Separating the data properly is the first step toward the right diagnosis. I've seen shops that were proud of an overall abandonment rate of sixty-five percent, until we looked at mobile separately and found seventy-seven percent.

Example

Three scenarios compared

Shop A: €50,000 in revenue, 70% abandonment. The opportunity is in the checkout.

  • Shop B: same revenue, 60% abandonment. The opportunity is in mobile and retention.
  • Shop C: €50,000 in revenue, 75% abandonment. The fastest lever is transparency around additional costs.
21 42 62 83 70 Shop A 60 Shop B 75 Shop C
Abandonment rates determine your next lever
Transcript of this slide

The same revenue figure can point to three very different diagnoses. Shop A is right at the average, so a systematic checkout review makes sense. Shop B is already below average, so the next lever is probably mobile conversion and repeat purchases. Shop C is well above average, and hidden costs, shipping fees, or unclear pricing are often the fastest thing to fix. Your abandonment rate tells you where to focus next. That's why it's the most important diagnostic number in e-commerce, in my view.

Summary

Summary: the key takeaways

Baymard shows that, on average, seventy percent of all shopping carts are abandoned before purchase.

  • Every percentage point less abandonment is direct additional revenue, without more traffic.
  • Mobile and retention amplify the problem, but they also make the lever bigger.
1
Seventy Percent Abandonment
2
Opportunity Cost
3
Mobile and Retention
4
Conversion as a Lever
Transcript of this slide

The core idea in three sentences: more traffic isn't the answer. Better conversion from your existing traffic is. The 70% problem isn't inevitable. It's the biggest growth opportunity in most shops. Every percentage point you win back pays off directly in euros, and it compounds over time. If you take just one thing from this module, you're already ahead of most of your competitors.

Summary

What you're taking away

Translate abandonment rates into euros. That makes the opportunity tangible inside your business.

  • Check mobile and desktop separately before you celebrate an overall number.
  • Prioritize checkout improvements over new ad spend.
From benchmark to concrete action
Transcript of this slide

These three habits are what separate shops that talk in numbers from shops that talk in assumptions: euros instead of percentages, mobile separated out, checkout first. Apply just these three principles in your next strategy meeting and you'll already have an edge. You'll also find that budget decisions get a lot easier, because you're calculating instead of guessing.

Intermediate step

The promise

Conversion optimization isn't a design question. It's an economic one, and it starts with the visitors you already have.

Measurable Scalable Proven
Transcript of this slide

In the next module, we'll look at why more traffic doesn't help as long as your conversion rate stays the same, and when it actually makes sense to buy traffic. Until then, keep your three numbers handy. And remember: conversion optimization isn't a design question, it's an economic one. It starts with the visitors you already have and makes every future click cheaper.

Quiz

Quiz

Test your knowledge.

A shop owner says: 'Our cart abandonment rate is sixty-five percent, which is pretty good.' How would you evaluate that statement against the Baymard benchmark?

A shop has five thousand checkout visits, a seventy percent abandonment rate, and an average order value of eighty euros. How much additional annual revenue does it generate if the abandonment rate drops to sixty-nine percent?

Why does a poor mobile checkout make the seventy percent problem especially worse?

Two shops each have ten thousand visitors per month and an average order value of eighty euros. Shop A converts at two percent, Shop B at three percent. What does that mean?

A shop owner increases their Google Ads budget every month but sees rising cost per click with barely any increase in conversions. What's the best economic explanation for this?

Exercise

Exercise

Apply what you have learned right away.

  • 1
    Your Personal Abandonment Potential
    mini-audit · approx. 25 min
    Open your analytics tool and note the following for the last full month: (1) overall cart abandonment rate, (2) cart abandonment rate on mobile, (3) average order value, (4) monthly checkout visits. Then calculate: how much additional revenue per month and per year would you generate by reducing your abandonment rate by two percentage points? Put the result into a single sentence you could use in your next strategy meeting.
  • 2
    Benchmark Comparison
    benchmark · approx. 20 min
    Look up the current Baymard benchmark for your industry or a comparable segment. Are you above or below average? Which of the three levers, checkout transparency, mobile UX, or the entry point for retention, looks like your biggest opportunity? Back your answer with a specific number from your own shop.
Reflection

Reflection

A quick look back before you continue.

  • Put it in euros: what would a single percentage point less cart abandonment per month be worth in your shop?
  • How large is the gap between your mobile and desktop conversion rate - and are you currently celebrating an overall figure that masks that weakness?
  • What did the last customer who abandoned already cost you in acquisition spend before they ever left the checkout?
Feedback

Feedback

Was this module useful for your shop?

Sources

Sources & further reading

Here you will find links and materials to explore the topic in more depth. Take your time.

Finish

Module completed

Next Module: Why More Traffic Isn't the Answer

Hands-on material to take away

This module comes with two PDF downloads you can apply right away:

  • Job-Aid: The core message condensed onto one page, ideal for quick reference before decisions.
  • Worksheet: A fillable worksheet to adapt what you have learned to your shop.

Overview & learning objective

This module is aimed at shop owners.

After completing this module, you'll be able to benchmark your cart abandonment rate against Baymard's reference point of around seventy percent, convert every percentage point of abandonment into concrete euro opportunity cost, and make the case for why checkout, mobile, and retention are stronger levers than additional ad spend.

The 70% Problem