Ecommerce · 23 Oct 2026
Shopping cart abandonment: what the research says and how to reduce it
About 7 in 10 online carts never become orders. Here is what Baymard Institute's research shows about why, and the checkout fixes that matter most.
Most new store owners pick a price by looking at competitors. That is a useful check, but it should come last. Start with your own costs, or you can sell a lot and still lose money.
1. Add up the real cost of one unit
Include the product, packaging, inbound shipping and any customs duty. If a mug costs $6 to buy, $1 to pack and $1 to ship to you, your cost is $8, not $6.
2. Choose a target margin
Many online stores aim for a gross margin of 40% or more. That leaves room for ads, returns and payment fees. To reach a 50% margin on an $8 cost, the price needs to be $16.
Check any price in seconds with the profit margin calculator. It also shows markup, the number many suppliers quote.
3. Check the price against your ad costs
If you plan to run ads, work out your break-even ROAS before launch. A thin margin means every sale needs a lot of revenue per ad dollar.
4. Plan discounts in advance
A 20% sale on a product with a 50% margin cuts your profit per sale by 40%. Use the discount calculator to see the final price and make sure it stays well above your cost.