Is my cart abandonment rate calculated based on abandoned carts or abandoned checkouts in Shopify?

As a Shopify store owner, understanding cart abandonment metrics has been a constant challenge for me. Every time I look at my analytics, I see these numbers dancing around, but I'm never quite sure what they truly represent. Are we talking about customers who added items to their cart but never started checkout? Or those who initiated checkout but didn't complete the purchase? This ambiguity drives me crazy because it directly impacts how I strategize my conversion optimization efforts. I've spent countless hours trying to decode these metrics, knowing that even a small improvement could mean thousands of dollars in additional revenue. My team keeps asking, 'What's our real abandonment rate?' and I want a clear, definitive answer. More importantly, I want to understand not just how it's calculated, but what actionable insights I can extract from these numbers to reduce friction in my store's purchasing journey.