eCommerce conversion rate is the percentage of online store visitors who complete a purchase, sign up, or engage in a desired action, showcasing the effectiveness of turning website traffic into actual customers.

In this article, you will learn how to calculate your conversion rate, how to improve it, and other ecommerce conversion rate optimization strategies, also known as CRO (Conversion Rate Optimization) techniques.

What’s Considered a Good Conversion Rate for eCommerce Businesses?

A good conversion rate for ecommerce businesses is typically around 2-3%. This means that, on average, about 2 to 3 out of every 100 visitors should make a purchase on your online store.

The key is to focus on improving your conversion rate over time by creating a user-friendly website, offering free shipping, discounts, and building trust through elements like SSL security and customer reviews.

How Is eCommerce Conversion Rate Determined?

In the eCommerce market, it is about finding out how many of your store’s visitors turn into actual buyers. Here is the formula to help you calculate your rate.

eCommerce Conversion Rate Formula

Calculating the conversion rate is not as complicated as it sounds. You just need two numbers:

1. The number of people who made a purchase
2. The total number of visitors to your store

To get the conversion rate, you use this simple formula:

Conversion Rate = (Number of People Who Made a Purchase) / (Total Number of Visitors to Your Store).

Imagine you have an online store that had 200 visitors, and out of those, 8 bought something. To find your conversion rate, it’s like saying 8 (people who made a purchase) divided by 200 (total visitors). If you do the math, your conversion rate is 4%.

The higher this percentage, the better your store is doing at convincing visitors to become buyers.

Example Calculation of Conversion Rate

Let’s put this into a real example. Imagine you run an eCommerce store selling stylish sneakers. Last month, your store had 800 visitors. Out of those, 40 people decided to purchase your awesome sneakers.

You calculate the conversion rate using this formula: Conversion Rate = 40 (people who made a purchase) / 800 (total visitors), which equals 5%.

So, your conversion rate for that month was 5%. It means that out of every 100 people who explored your sneaker store, 5 of them became sneaker owners. That’s a solid conversion rate, showing your store’s success in turning visitors into customers.

Why Is Conversion Rate So Important in eCommerce?

Conversion rate is important in eCommerce because it shows how well a website convinces visitors to buy things.

A high rate means more sales, while a low rate means there is work to do.

It helps businesses see how their website and marketing are performing.

By making improvements, they can earn more money, make customers happier, and do better in the online market.

What Factors Affect eCommerce Conversion Rate?

The main factors that affect eCommerce conversion rate are website design, product presentation, pricing, trust signals, and checkout process.

Clear product images, transparent pricing, and a user-friendly checkout also contribute to higher conversion rates.

Here is a deeper analysis of each of these factors that affect conversion rates for your online store:

Factor 1: Site Design and Usability

An online store’s design and usability play an important role in influencing conversion rates.

Here are some key elements to consider:

• Well-Designed, User-Friendly Site: An appealing and well-organized website ensures a positive user experience.
• Responsive, Mobile-Friendly Layout: As an increasing number of shoppers use mobile devices, your site must adapt to various screen sizes.
• Easy Navigation: Clear menus and intuitive navigation help visitors find what they are looking for. Don`t forget to observe your landing page conversion rates, as part of your navigation strategy.
• Search Function: A robust search function improves user experience by making it easy to locate specific products.

Factor 2: Product Presentation

The way you present your products also impacts conversion rates. Pay attention to the following:

• High-Quality Images and Videos: Visuals matter. Use high-resolution images and videos to showcase your products.
• Detailed Product Descriptions: Provide complete information about each product to help customers make informed decisions.
• User Reviews: Allow customers to leave reviews, adding credibility to your products.
• Zoom Features and Multiple Angles: Enable customers to get a closer look at the products by offering zoom features and multiple images from various angles.

Factor 3: Security and Site Trust

Building trust with your customers is essential for conversion rates. These factors can help establish that trust:

• Trust Badges and SSL Certificates: Display trust badges and assure customers that their information is secure.
• Clear Privacy Policies: Provide transparent privacy policies to address customer concerns.
• Secure Payment Options: Offer trusted and secure payment methods such as PayPal.
• Hassle-Free Return and Refund Policies: Clearly outline return and refund procedures to provide confidence to your customers.

Factor 4: The Checkout Process

The checkout process is a critical phase for conversion. A smooth and stress-free experience is always positive. Consider the following:

• Simplified and Streamlined Checkout: Minimize steps and reduce complexity in the checkout process.
• Guest Checkout Option: Allow customers to purchase without requiring them to create an account.
• Clear Indication of Total Cost: Transparency in pricing is vital to prevent surprise costs.
• Multiple Payment Choices: Offer various payment methods to accommodate customer preferences.

Factor 5: Loading Speed and Performance

Website performance, including loading speed, can directly impact conversion rates. Ensure the following:

• Optimize Loading Speed: A slow website can discourage customers. Optimize your site for faster loading times.
• Compress Images: Large images can slow down your site. Use compression techniques to maintain quality while reducing size.
• Use Content Delivery Network (CDN): CDNs can distribute site content globally, reducing loading times for users across different locations.
• Minimize Large Media Files: Heavy media files should be minimized or replaced with lighter alternatives.
• Utilize Performance Tools: Employ tools like Google PageSpeed Insights to continuously analyze and enhance your site’s performance.

What’s the Average Conversion Rate for Online Stores?

The overall average conversion rate for eCommerce websites typically hovers around 2-3%.

This means that out of every 100 visitors, around 2-3 will make a purchase.

This percentage can serve as a starting point for evaluating your website conversion rate benchmarks.

Average eCommerce Conversion Rate by Device Type

Conversion rates differ based on the device used by site visitors. Here is a breakdown by device type:

• Desktop: Desktop users generally have a higher conversion rate, typically around 3-4%. These users often have a more comfortable shopping experience due to larger screens and more efficient navigation.

• Mobile: Mobile conversion rates tend to be lower, around 2-3%. The smaller screen size and potential distractions make it more challenging to convert mobile visitors. However, optimizing for mobile is becoming increasingly critical as more users shop on their smartphones.

Average eCommerce Conversion Rate by Industry

Different industries experience varying conversion rates, influenced by factors like the type of products or services offered. Here is an industry-specific breakdown:

• Fashion and Apparel: This industry often sees conversion rates around 2-4%. Visual content and customer reviews can significantly impact these rates.
• Electronics: Conversion rates for electronics stores can range from 2-3%. Customers are likely to conduct thorough research before making a purchase.
• Health and Wellness: The health and wellness sector may achieve conversion rates between 3-5% due to the growing interest in wellness products.
• Home and Garden: Home and garden eCommerce stores tend to have conversion rates in the 2-4% range. Detailed product descriptions and high-quality images are essential here.
• Food and Beverage: Food and beverage sites may have conversion rates of 1-2%. These items often require a lower commitment compared to others.
• Luxury Goods: Luxury brands may experience conversion rates around 2-3%. The exclusivity and high price point really influence these figures.

Average eCommerce Conversion Rate by Region/Country

Conversion rates also vary by region or country. Cultural differences, economic factors, and shopping behavior play a role:

• United States: The average conversion rate in the US is about 2-3%. It’s a highly competitive market, which can affect rates.
• United Kingdom: In the UK, the average conversion rate is similar, ranging from 3-4%. British consumers are comfortable shopping online.
• Germany: German eCommerce sites achieve slightly higher conversion rates, around 2-3%. German consumers often prioritize quality and trust.
• India: Conversion rates in India tend to be around 1-2%. The eCommerce market is rapidly growing, with mobile shopping on the rise.
• Australia: The Australian market boasts conversion rates of 2-3%. Shoppers are accustomed to eCommerce transactions.
• Brazil: Brazil’s eCommerce sites may have conversion rates of 2-3%. Payment methods, language, and local preferences play an important role here.

Average eCommerce Conversion Rate by Platform

The eCommerce platform you use can influence conversion rates:

• BigCommerce: BigCommerce offers versatile eCommerce solutions and generally sees conversion rates in the 2-3% range.
• Shopify: BigCommerce is known for its user-friendliness and sees similar average conversion rates of 2-3%.
• WooCommerce: Woocommerce, a plugin for WordPress, can achieve average conversion rates of 2-3%.
• Magento: Magento is often chosen for larger enterprises and may have slightly higher conversion rates, ranging from 3-4%.
• Custom Solutions: Custom-built websites vary significantly but can often achieve conversion rates in the 3-4% range, depending on their design and optimization.

Average eCommerce Conversion Rate by Source/Channel

Traffic sources and marketing channels also affect conversion rates:

• Direct Traffic: Visitors who type your URL directly into their browser often have higher conversion rates, around 4-5%.
• Organic Search: Traffic from search engines, after search engine optimization, usually results in conversion rates of 2-3%. (If you don’t know how to measure yours, consider learning more about SEO for eCommerce.)
• Paid Advertising: Conversion rates for paid advertising campaigns can range from 2-3%, influenced by ad quality and targeting.
• Social Media: Social media traffic usually has lower conversion rates, around 1-2%. Users may browse without immediate buying intent.

Tips for Improving Conversion Rates in Your eCommerce Business

Here are 10 tips to improve your online store conversion rate:

Tip 1: Mobile Optimization

Nowadays mobile optimization is non-negotiable.

With a relevant portion of shoppers using smartphones and tablets, your professional website must provide a seamless experience across all devices.

Make sure that your website is mobile-friendly, loads quickly, and features easy navigation.

Mobile users should have just as smooth an experience as desktop users.

Tip 2: Visual Appeal

High-quality product images and videos are essential for your eCommerce site.

Since online shoppers can’t physically touch or feel products, compelling visuals are vital.

Detailed images and videos allow customers to better understand what they are buying, increasing their confidence and the likelihood of conversion.

Tip 3: Free Shipping

Free shipping has become an industry standard, thanks to giants like Amazon.

Customers often expect it when shopping online.

If possible, offer free shipping, as it’s a powerful incentive that will boost your conversion rates.

If free shipping isn’t possible, consider transparent shipping fees.

Tip 4: Limited-Time Coupons

Creating limited-time coupon codes is an effective way to create a sense of urgency among your customers.

When shoppers know that a discount is available for a short period, they are more likely to make a purchase.

Coupons are a valuable tool in your eCommerce strategy.

Tip 5: Competitive Pricing

Research your competitors and price your products competitively.

Customers often shop around to find the best deal.

To stay competitive, not only must you match or beat similar products’ prices, but you also need to communicate the value your products offer through effective marketing and branding.

Tip 6: Streamlined Checkout

A lengthy or complicated checkout process can deter potential customers from completing their purchases.

Keep the checkout process simple, with minimal steps.

Guarantee that forms are easy to complete, and consider offering guest checkout options, so customers do not need to create an account to buy.

Tip 7: Abandoned Cart Recovery

Many customers add items to their carts and then leave your site without completing their purchase.

To recover potentially lost sales, implement abandoned cart recovery tools.

Send automated reminders to customers with items left in their carts, and consider offering incentives, like discounts, to encourage them to return and complete the purchase.

Tip 8: Live Chat and Chatbots

Offering real-time support through live chat and chatbots improves the customer experience.

These tools provide instant assistance, answer questions, and guide customers during their shopping journey.

Some customers prefer chatting over calling or emailing for support, so offering these options will increase conversions.

Tip 9: Build Trust

Trust is vital in eCommerce.

To gain your customers’ trust, display trust signals on your website.

These signals can include SSL certification at checkout, images of secure payment options, and security badges from reputable companies like McAfee or GeoTrust.

Demonstrating your commitment to security and privacy will reassure customers, making them more likely to share their payment information.

Tip 10: Testing and Personalization

Continuously test and optimize various elements on your eCommerce site.

This could involve A/B testing different button colors, font sizes, or even the layout of your product pages.

Additionally, consider personalizing the user experience by leveraging user tracking and communication software.

Personalized experiences can shorten the path to purchase and significantly increase conversion rates.

Best Tools to Help You Reach Your Customer Conversion Goals

Reaching customer conversion goals is the holy grail for any business, especially online stores. Here are 7 tools to help you achieve them.

• Google Analytics: Provides insights into visitor behavior, traffic sources, and conversions. By understanding where your visitors come from and what they do on your site, you can make data-driven improvements.
• HotJar: A heat mapping tool that allows you to see how users interact with your website. From click tracking to cursor movements, it reveals valuable information about user behavior. This tool helps you understand what works and what needs tweaking.
• Quantcast Measure: Positioned between Google Analytics and Facebook Analytics, this tool offers advanced demographic data, enabling you to better understand your site’s audience. This data informs your messaging and imagery to resonate more deeply with your target market.
• Klaviyo: Effective for creating browser abandonment campaigns. You can trigger emails to customers who’ve browsed your site but didn’t make a purchase. Offering them coupons or reminding them of the value they would get from buying can encourage conversions.
• Live Chat Support and Chatbots: These tools offer immediate interaction with your customers, answering their queries and helping them through the buying process. A combination of live chat and chatbots, especially during off-hours, ensures excellent customer support.
• One-Click Email Marketing Integrations: Use these to capture email addresses and build a database of potential customers. Offering a coupon code in exchange for their email can help you keep marketing to them, increasing your chances of converting them into buyers.

Common Misconceptions about eCommerce Conversion Rates

A common misconception is that higher traffic will automatically result in higher conversion rates.

While traffic is important, quality matters more than quantity.

Focusing solely on driving more visitors can lead to a lower conversion rate if they’re not the right audience.

Another myth is that improving minor details won’t make a significant difference.

In reality, small changes can lead to great improvements.

A simple adjustment in button placement, color, or text impacts user behavior.

More Essential Metrics to Track eCommerce Performance

Beyond conversion rates, some other metrics help analyze your eCommerce performance. These metrics provide a holistic view of your online store’s effectiveness.

• Bounce Rate: This percentage indicates the number of people who leave your site after viewing a single page. A high bounce rate suggests users are not finding what they are looking for. It is vital to lower this rate by improving page relevance and user experience.
• Exit Rate: Different from bounce rate, this metric shows the percentage of users who leave after viewing a specific page. A high exit rate on particular pages can signal a problem, leading you to optimize those pages for better user engagement.
• Click-Through Rate (CTR): CTR is the number of people who click a link to your site from an ad or email. Optimizing your ads and email campaigns to increase CTR is a game-changer for conversion rates.
• Average Session Duration: This metric measures how long people spend on your site during a single session. Longer sessions indicate more engaged visitors. If your bounce rate is high and the average session length is low, it’s a sign that visitors aren’t finding what they need.
• Page Depth (Pages Per Session): This metric reveals how many pages a potential shopper visited before leaving. A higher page depth can indicate more engagement. However, too many page views without conversion might signal a complex or unclear conversion funnel.

Why Is My eCommerce Conversion Rate So Low?

Low eCommerce conversion rates can be attributed to various factors.

One common reason is that your website might not be user-friendly.

A cluttered or complicated layout, unclear navigation, or slow loading times can deter potential customers.

Additionally, poor product descriptions and images, a lack of trust signals, or unclear value propositions can also lead to low conversion rates.

Furthermore, not understanding your target audience can negatively impact conversions.

If you are not meeting your audience’s needs, preferences, and pain points, it is challenging to motivate them to make a purchase.

High competition and ineffective marketing strategies can also lead to lower conversion rates. It is important to continually assess your approach and adapt to changing market conditions.

Can I Optimize the Conversion Rate of My Online Store On My Own?

Yes, you can optimize your online store’s conversion rate on your own.

Many eCommerce platforms offer user-friendly interfaces and built-in tools for A/B testing, which allow you to experiment with various elements on your site to improve conversion.

Leveraging analytics, such as Google Analytics, and studying user behavior can provide valuable insights to make informed decisions.

However, as your business grows, it might be beneficial to seek professional assistance or use specialized tools to optimize your conversion rate more effectively.

What Role Does Site Speed Play in Conversion Rates?

Site speed plays a critical role in conversion rates.

A slow-loading website can lead to a higher bounce rate and user frustration.

Customers today expect fast and seamless experiences. A delay of even a few seconds can deter them from completing a purchase.

It is essential to optimize your site speed by compressing images, using browser caching, and utilizing a content delivery network (CDN) to ensure your pages load quickly.

A faster website not only enhances user experience but also boosts conversion rates.

Does the eCommerce Website Design Influence Conversions?

Absolutely, eCommerce website design has an influence on conversions.

Your website should have an intuitive layout, clear navigation, and a visually appealing design.

A cluttered or confusing design can discourage visitors from exploring your products. High-quality images and well-structured product pages enhance the shopping experience.

Moreover, having a consistent and trustworthy design helps establish your brand’s credibility.

The design should guide users smoothly through the buying process, from product discovery to checkout, with persuasive call-to-action buttons and clear value propositions.

How Important Is Mobile Optimization for eCommerce Conversion Rates?

Mobile optimization is paramount for good eCommerce conversion rate and rates, given the increasing use of smartphones for online shopping.

If your website is not mobile-friendly, you risk losing a substantial portion of potential customers.

Mobile optimization ensures that your site adapts to various screen sizes and functions smoothly on smartphones and tablets.

Features such as responsive design, easy navigation, and mobile-specific payment options are crucial.

Neglecting mobile optimization can result in high bounce rates and lost sales opportunities.

How Can I Use Analytics to Understand and Improve My Conversion Rate?

Analytics is a powerful tool for understanding and improving your conversion rate.

Start by setting up Google Analytics or similar tools to track user behavior.

Pay attention to key eCommerce sales metrics, including bounce rate, exit rate, and average session duration.

Analyze user flow to identify drop-off points in the conversion funnel, conducting A/B tests to experiment with different elements like headlines, images, or call-to-action buttons.

By continuously monitoring and interpreting analytics data, you can make informed decisions to optimize your website and increase conversion rates.

Conclusion

Now that you learned how to calculate your conversion rate and the best strategies to increase it, you are ready to put knowledge into practice.

After all, not being able to sell, even having the most popular eCommerce products, is the most frustrating thing in the eCommerce world.

The first step to change that today is improving your website experience. One of the best ways of doing it is by picking one of the companies we have selected for you on our list of Best eCommerce Hosting. This way, your conversion rates will be able to grow based on the better user experience you are providing.

Next Steps: What Now?

• Optimize Your eCommerce Website: Ensure your eCommerce website is well-optimized for SEO to increase visibility and drive more profitable traffic.
• Secure Your eCommerce Domain: Secure a domain name that reflects your eCommerce niche, an important step for building a strong and profitable online presence.
• Affiliate Marketing for eCommerce: Explore affiliate marketing to expand your reach and increase sales through profitable partnerships for your eCommerce business.

Learn More About eCommerce

• Do I Need a Website for My Business in 2023? Yes. Here’s Why
• How to Build an eCommerce Website in 2023: From Idea to Launch
• How To Create an eCommerce Website Using WordPress
• eCommerce Website Cost
• Types Of e-Commerce
• Business Models In eCommerce
• Strategies for E-commerce Marketing in a Competitive Market
• The Challenges of eCommerce and How to Overcome Them
• eCommerce Site Search Guide w/ Best Practices & Examples
• eCommerce Automation: How It Works (plus Tools and Benefits)
• 25 Ways to Use AI in eCommerce (with Examples & Tips)
• Is eCommerce Profitable? Here’s What You Need to Know
• 20 eCommerce Business Ideas (+ Next Steps)
• eCommerce Migration and Replatforming Guide