February 21, 2023

Ecommerce Conversion Rate Optimization: 18 Tips For Boosting Your Conversions

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If you ask any successful ecommerce store owner what you could do to boost your online store’s revenue instantly, they’ll likely all tell you a similar thing—improve your ecommerce conversion rate. Why? Your conversion rate can mean the difference between your store achieving success or failure. Think about it: If your current sales conversion rate […]

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Michelle Deery

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If you ask any successful ecommerce store owner what you could do to boost your online store’s revenue instantly, they’ll likely all tell you a similar thing—improve your ecommerce conversion rate.

Why? Your conversion rate can mean the difference between your store achieving success or failure.

Think about it: If your current sales conversion rate stands at around 1%, and you bump it up by 0.5%—your store’s revenue will increase by 50%. That’s a huge return on investment

But what exactly is conversion rate optimization (CRO), and why is it so important? What do you need to consider when optimizing conversion rates

In this post, we’re going to cover:

Let’s start.

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What are ecommerce conversions?

There isn’t just one type of conversion for ecommerce stores.

Ecommerce conversions can be any action across your website that is specific to your business, like adding a product to a shopping cart, downloading a guide, signing up for a newsletter, engaging with your online chat, and more.

Like this, but online; Image: Unsplash

What is an ecommerce conversion rate?

An ecommerce conversion rate is the percentage of users that visit your store and take a desired action—typically, that means purchasing a product.

And it’s not uncommon for ecommerce stores to have multiple conversion goals. They all get the visitor closer to handing you some cash.

How do you calculate ecommerce conversion rates?

You can calculate your ecommerce conversion rate in three easy steps:

  • Step 1: Find out the total number of visitors to your website within a specific time frame. This can be done using Google Analytics or a similar tool.
  • Step 2: Find out the total number of conversions that the visitors took, for example, the number of sales.
  • Step 3: Use the below ecommerce conversion rate formula to calculate the conversion rate. What is an average ecommerce conversion rate?

Ecommerce conversion rate formula

Ecommerce conversion rate = (total conversion / total visitors to your website) * 100

Here’s an example:

(100 conversions / 5000 visitors to your website) * 100 = 2% conversion rate

What is the average ecommerce conversion rate?

Globally, according to data from IRP Commerce, the average ecommerce conversion rate for December 2022 is 2.13%.

This is a 0.23% decrease from the previous year when it was 2.36%.

Below you can see the average ecommerce conversion rate for each month from 2021 to 2022.

There is a natural ebb and flow that changes with the seasons (or a pandemic), but rates vary between 1.3% and nearly 2.4%.

Image: IRP Commerce

For Shopify stores that want to increase their conversion rate: Littledata surveyed over 3,000 Shopify stores in September 2022, finding the average conversion rate for Shopify was 1.4% (a slight decline from 2021’s 1.6%).

What is considered a good ecommerce conversion rate?

You want your store to achieve above the average ecommerce conversion rate of 2.13%. When it does, it’s an indicator that your ecommerce store is performing better than most.

Shopify conversion rates: A conversion rate of 3.2% puts you in the best 20% of Shopify stores, and more than 4.7% puts you in the best 10%.

What is a bad ecommerce conversion rate?

When a conversion rate is low, it can indicate that a brand is leaving money on the table.

Equally, if your ecommerce conversion rate is below the 2.13% average—it’s time to act fast and improve it. Improve store visibility and user experience to start moving the needle.

For Shopify stores: An ecommerce conversion rate (on all devices) of less than 0.4% would put you in the worst 20% of Shopify stores.

Ecommerce conversion rates by industry

The ecommerce conversion rate you decide to target will vary depending on the specific industry your online store operates in.

Below are the ecommerce conversion rate benchmarks for each industry.

ecommerce conversion rates by industry ranked by growth over one year

What is conversion rate optimization (CRO) for ecommerce?

In the pursuit of all the various types of conversions, brands spend a great deal of energy optimizing their stores to improve the customer experience and persuade shoppers to take action.

This pursuit is conversion rate optimization (CRO).

You analyze the parts of your store that present friction for the sales funnel and improve them to boost conversions.

It’s an iterative process where small changes and time are key to understanding the effect on conversions. It usually involves improvements to page design and user experience.

For example, a brand could test a more streamlined sign-up form that only asks for the most important information as an improvement on their existing form with multiple fields to fill.

Then, they wait to see the increase in sign-ups.

Or, it could be the addition of product videos to the photo galleries on all the product pages. Will more people add to cart by simply getting a better view of the product?

These experiments rely on more than just the conversion rate metric, though. Let’s look at what else you should track for great CRO.

Track these metrics to stay on top of conversions

There are metrics you should track that will help you measure your ecommerce conversion rate. Here are a few:

  • Unique page views. The number of people that visit your store (as opposed to total page views).
  • Bounce rate. The percentage of users that leave your ecommerce site without taking an action.
  • Shopping cart abandonment rate. The number of visitors that have abandoned their cart without making a purchase.
  • Sales conversion rates. The number of visitors that have completed a purchase.
  • Traffic source. The origin through which users found your site.
  • Average order value (AOV). The amount your customers spend on the average order. The higher this number, the more you get from each sales conversion.

The next step is to determine the KPIs for each of the metrics you have chosen to track.

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Tools for ecommerce conversion rate optimization (CRO)

To monitor the effectiveness of your store’s ecommerce conversion rate optimization—you will need powerful tools that enable data collection, A/B testing, heat maps, and more.

These tools give incredible insights into how your visitors interact with your store, so you can pinpoint areas where conversion optimization is most needed.

Here are four top CRO tools:

1. Google Analytics

Google Analytics is one of the most popular tools on the market, and it’s a great place to start for tracking ecommerce conversion rates.

A comprehensive and robust analytics tool, it’s ideal for companies on a budget since its main features are free—while the other tools on the list charge subscription fees for their main offerings.

Its Enhanced Ecommerce feature provides merchants with a broad view of their metrics and provides excellent insights into website visitors, such as:

  • How long they stay on your website
  • If they are unique visitors or returning visitors
  • What channel do they come from
  • What devices they are browsing your site on

2. Woopra

Woopra comes with incredibly powerful functionality, and its purpose is to provide you with real-time customer activity in one place.

Its capabilities include:

  • Segment your customers based on tendencies
  • Filter reports based on devices, demographics, behaviors, platforms, and more
  • Analyze why your site visitors abandon their shopping carts
  • People Profiles reveal the full behavioral history for each user

3. Hotjar

Hotjar is a product experience insights tool that helps ecommerce store owners understand how users interact with their ecommerce site through behavior analytics and feedback.

It’s very easy to use and complements the data from tools like Google Analytics.

Hotjar features:

  • Heatmaps
  • Direct customer feedback
  • Incoming feedback widget
  • Video recordings
  • Surveys

4. VWO

VWO is a visual editor and testing tool that offers web analytics and user behavior insights.

One of VWO’s key features is that it offers the ability to create different versions of your ecommerce store’s website and landing pages.

It also provides:

  • Top-notch testing capabilities for A/B testing, split testing, and multivariate testing
  • Advanced tracking of website visitor’s actions on your ecommerce website

18 Strategies to increase your ecommerce conversion rates

Boosting your ecommerce conversion rates is an art and a science. You need to understand your audience and find the best ways to persuade them to buy.

Luckily, you don’t need to reinvent the wheel to optimize for conversions. Millions of ecommerce operators have gone through the trial and error to find what works and what fails.

Here are several ecommerce CRO strategies you can use to start seeing better conversion rates quickly.

1. Make your store easy to navigate with clean design

Increasing your ecommerce conversion rates involves several different factors—and one of them is creating a seamless user experience with top-notch website navigation and design.

Your online store visitors should find what they are looking for quickly and easily—with your products organized intuitively along with a simple and clean design.

After all, a study by Google found that “visually complex” websites are consistently rated as less beautiful than their simpler counterparts.

Take Herschel’s homepage, for example.

Its simplicity doesn’t send any mixed signals and gets straight to the point. The design is crisp, with clear product category pages on display for easy navigation.

Image Source: Herschel

2. Optimize your website for mobile devices

61% of mobile users claim that they’re likely to leave a website that doesn’t perform well on their mobile devices.

Additionally, 45% of them say that they are less likely to visit such a website again.

It’s also expected that. 187.5 million US consumers will complete at least one online transaction on a web browser or mobile app on their mobile device in 2024—up from 167.8 million mobile U.S. buyers in 2020.

If you want to improve your conversion rate, you need to create a smooth shopping experience for your mobile users. Start by adapting your website to the way mobile users browse the Internet.

Implement larger buttons and input boxes, start using bigger font sizes, and leave plenty of white space between different website elements.

Image: Zesium

This will help to reduce misclicks and make it easier for mobile users to navigate your website. When building your store pages, make sure you are able to also customize for the mobile experience.

You should also strive to reduce the amount of information mobile users need to input to check out.

Additionally, avoid using popups since they can significantly reduce the overall quality of the mobile shopping experience.

3. Customize your stores pages to differentiate your brand

“Creating persuasive brand messaging through visual and design elements is crucial in boosting e-commerce conversion rates. In a highly competitive e-commerce market, your website’s first impressions can make or break you.

Your site’s theme and design are the first things prospective customers see, and ensuring they attract and persuade new visitors to stay or purchase your products is essential.”

— Grant Polachek, Head of Branding at Squadhelp

One of the easiest ways to increase conversion in retail is by customizing your store’s pages.

No page should be neglected, and with the help of Shogun, you can tune up your landing pages, your product pages, and everything in between. Let’s see how:

Use CTAs strategically and sparingly

Your ecommerce store needs to have clear, concise, and strategically placed calls to action (CTAs).

They are indispensable, and when personalized, they convert 202% better. With Shogun, you can place CTAs anywhere on your store’s pages, and this includes your add-to-cart button.

Use top-class images and videos

Images and videos do more than paint a pretty picture of your products.

According to a study, about 90% of surveyed shoppers believe the quality of ecommerce images is very important when deciding whether or not to make a purchase—and 96% of people have watched an explainer video to learn more about a product or service.

Essentially, high-quality videos and images are an important factor in achieving high ecommerce conversion rates.

Shogun makes it easy to place both videos and images on any section of your web pages without sacrificing quality or design.

Optimize your custom pages with A/B testing

It comes as no surprise that 71% of companies run two or more A/B tests a month—since customers’ needs change, audiences as a whole change, the competition gets bigger—and you must find the solutions to keep standing out among your competitors.

A/B testing delivers these game-changing decisions.

There are many tools that enable you to test your pages—like VWO and Optimizely—which can give you actionable insights for customizing your store pages quickly for conversions.

Display product reviews

As shoppers browse ecommerce stores, product reviews provide them with a valuable resource—customer feedback.

And they use this resource, with 89% of consumers worldwide making the effort to read reviews before buying products.

Product reviews also contribute to purchasing decisions too, with 79% of consumers saying they trust online reviews as much as personal recommendations from friends or family.

Shogun integrates with Shopify Product Reviews and Yotpo Product Reviews—allowing you to use reviews from other apps.

4. Upselling & cross-selling

An upsell is when you convince a customer to purchase an extra product or a more expensive product.

Cross-selling is encouraging shoppers to purchase supplementary products that are relevant to the ones added to their shopping cart.

Cross-selling and upselling increase your average order value since they are based on selling to a customer that has already purchased from your brand and not a new one.

Additionally, upselling increases revenue by 10-30% on average.

ZARA is one of the best cross-selling examples in the fashion industry. Whenever a potential customer views a product, they display the perfect outfit combination directly below it.

Image Source: ZARA

5. Build trust with user-generated content

“Customer reviews and social proof are great ways to show potential customers the value of your products and services. Displaying customer reviews, ratings, and testimonials can help increase conversions by providing shoppers with an incentive to buy from you instead of competitors.”

— Ryan Mckenzie, Co-Founder and CMO at Tru Earth

User-generated content (UGC) is any form of content that has been posted online by people—like simple text, customer reviews, testimonials, pictures, videos, forum posts, and blogs.

Using this type of genuine social proof content on your ecommerce site will help increase your conversion rate in retail. It can come from various sources, like social media, case studies, reviews, and more.

A study proved that user-generated photos are 5x more likely to create a conversion than professional product shots.

Jennifer Taylor Home integrates customers’ pictures on their product pages to build trust and encourage their shoppers to make a final purchase.

Image Source: Jennifer Taylor Home

6. Write compelling product descriptions

Leveling up your product descriptions is a great way to increase your ecommerce conversion rates.

They should paint a picture of your products that makes shoppers want to follow through with their purchase.

But how do you do that if you’re not a master copywriter?

Here are two ways:

Write about benefits, not features

Your customers want to know what’s in it for them—which is why you should write about your product’s benefits and not its features.

What’s the difference? Features are what your product does, and benefits are the results or outcomes that your customers will experience.

Beam’s product description for the fixer doesn’t only list its ingredients—but shows shoppers that they’ll experience less soreness and fatigue along with relief for sore muscles.

Image Source: beam

Make descriptions short and scannable

It’s important that your product descriptions are short and scannable.

Why? Research shows that 79% of users scan new pages they come across, and only 16% read them word-by-word.

Additionally, create your copy around bullet points, white space, fonts that are different sizes, and short paragraphs.

This will encourage your store’s visitors to continue reading about your products and move them further along their buying journey.

Great Jones is a great example of scannable products in action.

Image Source: Great Jones

7. Let visitors know your website is safe

Shoppers know they are vulnerable to scams and data theft at the hands of cybercriminals.

In fact, retail was the most targeted sector for cyberattacks—with the majority (53%) of ecommerce attacks seeking to steal card-not-present (CNP) data.

It’s your job to make your website visitors feel safe, and there are a few ways to do so:

  • Use a TLS/SSL certificate
  • Provide product protection with extended warranties
  • Display that your checkout is secure

LARQ displays both a 12-month warranty and a secure checkout badge on their product page. They are also positioned so that shoppers can see them clearly.

Image Source: LARQ

8. Improve website speed

With the introduction of 4G (and now 5G) internet, people have come to expect fast web browsing experiences.

Studies show that the average web page takes 87.84% longer to load on mobile vs. desktop, while 40% of users leave if a website doesn’t load in three seconds or less.

As many as 70% of website visitors claim that website speed has an influence on their buying decisions.

All these stats make it clear that the speed of your website has a significant impact on your conversion rate and that you should do whatever you can to improve it.

Here are a few ways to improve your site speed:

Upgrade to better web hosting

If you’re hosting your website yourself, the first thing you should try is updating to a better hosting plan.

While a dedicated server will be your best option here, VPS hosting can work as well if your website doesn’t generate a large amount of traffic yet.

Use a CDN

A Content Delivery Network (CDN) speeds up your website by serving content from servers that are closest to the visitors’ physical location.

Implementing a CDN can result in a significant speed boost, improving your load time by 30.2%.

Take advantage of browser caching

Browser caching is a technique of content delivery that aims to speed up website load time by storing static content on the user’s device.

That way, the user doesn’t have to download the same content every time they visit one of your pages, which reduces the overall amount of data they need to download to load your website.

Optimize images

Hosting a lot of high-resolution images can slow down your website considerably.

If you want to avoid this, optimize the images using a tool like Kraken.io to reduce their overall size without losing out on image quality.

Image: Kraken.io

Minify JavaScript and CSS

Making the visitor’s browser download a large number of files before loading your website can significantly slow down your load time.

You can mitigate this by combining multiple CSS or JavaScript files and then minifying the remaining ones with a tool such as Minify.

9. Live chat and chatbots on product & cart pages

Live chat isn’t just for providing customer support anymore—it can be used across every page on your ecommerce store.

Placing a chatbot on product pages makes it quick and convenient for your customers to ask questions and get the responses that they need.

It removes unnecessary friction since they don’t need to interrupt their shopping experience to gather more information.

And according to Forrester, customers who use web chat to speak with a brand are 2.8X more likely to convert.

Taylor Stitch has made its live chat available across every web page on its store. It’s both easy to find and use.

Image Source: Taylor Stitch

10. Simplify your checkout process

18% of US online shoppers have abandoned their shopping carts due to a complicated checkout process.

Consequently, to improve your online store’s conversion rate, you should simplify your checkout process.

Image: Baymard

A great place to start is to reduce the number of fields shoppers need to fill out to complete their purchases.

The average checkout flow has 11.8 form fields, and it’s typically possible to achieve a 20%-60% reduction.

In most cases, you can safely remove fields such as Company Name and Coupon. Depending on how your checkout form looks, there might be other fields you could remove as well.

Here’s how Adidas does it:

Image: Baymard

Another way you can make it easier for customers to fill out your checkout form is to give them the option of copying their billing information to their shipping details with a single click.

Use more drop-down lists in general instead of making customers type everything in themselves.

Consider using an address lookup service that can suggest potential addresses to customers when they start typing in their own addresses as well.

11. Enable guest checkout

Most ecommerce websites ask shoppers to create an account before they can check out and complete their purchase.

This makes sense since having a customer create an account helps you learn more about them and creates convenience when you sell to them in the future.

However, studies have shown that 24% of all shopping carts are abandoned because shoppers don’t want to create an account.

If you want to convert these shoppers, you’ll need to implement a guest checkout feature. Just like Crate & Barrel offers.

Image: Crate & Barrel

Don’t worry about not being able to learn more about your customers—you can ask them to create an account after they complete their purchase.

Since they already gave you a lot of information during checkout, you can make the account creation process a lot easier for them.

12. Offer more payment options

Today’s online shoppers are spoiled for choice and can be picky about how they make online purchases.

Simply not supporting their favorite payment method is enough to make them decide against buying from your website.

In fact, a lack of payment options is among the top ten reasons why shoppers abandon online shopping carts.

Implementing digital wallet payments through PayPal, Apple Pay, and Amazon Pay can have a significant impact on your conversion rate since they are becoming increasingly popular.

Additionally, digital wallets are projected to make up 51.7% of global e-commerce transactions by 2024.

PayPal

Image: Phppot

PayPal is the most popular digital wallet by far—with 435 million active users.

Considering its popularity, you should certainly include PayPal among the payment options you offer to your customers.

However, PayPal’s popularity isn’t the only reason why merchants should adopt it.

According to a comScore study, merchants that use PayPal Express Checkout experience 47% higher conversion rates compared to merchants that don’t offer this payment option.

The reason for this is obvious—Paypal’s Express Checkout uses information from the customer’s account to fill in billing and shipping details, creating a faster and hassle-free checkout experience.

Apple Pay

Image: Ecwid

Apple Pay was first introduced in 2014. Today, it’s used by more than 383 million people worldwide.

Since Apple Pay is a popular payment method among iPhone and Mac users, you should consider adding it to your ecommerce store’s payment options.

Using Apple Pay has helped merchants boost their conversion rates by up to 250% and improve checkout completion time by as much as 58%.

Similar to PayPal Express Checkout, Apple Pay reduces the amount of information shoppers need to enter during checkout by pulling data from customers’ Apple ID account.

Amazon Pay

Image: BigCommerce

Amazon has its own payment gateway called Amazon Pay.

Implementing it on your website could be a great way to boost ecommerce conversion rates. Firstly, it would help shoppers see your store as trustworthy by the 2.45 billion people who use Amazon every month.

Secondly, it would speed up the checkout process by pre-filling customers’ billing and shipping details by using information from their Amazon account.

13. Revamp your return policy

While rewriting your return policy might not be the first thing that comes to mind when thinking about improving your conversion rate, it’s actually an excellent way to ensure your website is able to convert visitors at a greater rate.

As many as 49% of online shoppers check a retailer’s return policy before making a purchase.

If your return policy is too restrictive, they’ll simply leave and find a business that offers better terms. There are a number of ways you can improve your return policy.

Start by extending your return window to at least 30 days and offering shoppers multiple ways to return their items.

IKEA offers an excellent return policy that extends to one whole year as long as the product is unused and in a re-saleable condition.

Image: IKEA

14. Offer AI-powered search technology

Do your shoppers ever find themselves directed to a “no results” page after they have typed in a search query?

If so, you’re likely losing out on sales and lowering your conversion rate.

This process is what’s known as product discovery, where your shoppers are trying to find the products they are looking for.

This issue can be fixed by optimizing your store’s search with AI-powered technology like natural language processing (NLP).

NLP allows your site to comprehend human language in the way your shoppers describe the products they search for on your ecommerce store.

If they use a different term than what your product’s name or description actually is—with the help of NLP they will still find the product.

PUMA saw a 52% increase in search-led conversions when they adopted AI-powered search.

Below you can see suggested products and terms that PUMA’s search engine returned after the term “men’s” was typed in the search box.

Image Source: PUMA

15. Enable shopping via social media platforms

As of January 2023, Instagram has 2 billion monthly active users, and Facebook has 2.95 billion monthly active users.

Additionally, 44.8% of global internet users use social media to search for brand-related information.

This makes social media a leading avenue for you to advertise your store and its products—ultimately leading to an increase in your ecommerce conversion rate.

Here’s how:

Create a Facebook & Instagram Shop

Facebook has rolled out a feature that allows businesses to create Facebook Shops on their business page.

It’s a static storefront where your customers can browse your store’s full collection of products and categories—leading them back to your ecommerce store and moving them further along your conversion funnel.

Lisa Says Gah is a sustainable fashion business that utilizes Facebook Shops to display products. Ultimately the brand increases its ecommerce conversion rates by using Facebook to broaden its customer reach.

After you’ve published nine shoppable posts, you can also create an Instagram Shop, like MVMT.

Image Source: Oberlo

Add links and shopping stickers to your Instagram Stories

If your Instagram account has over 10,000 followers, you can add Shopping stickers and links to your Stories.

When Instagram users click on the link, they will be redirected to your online storefront.

4TH ARQ is a unisex clothing brand that utilizes links on their Stories. They display the product image, and a link takes users directly to the product page.

Image: Instagram

16. Offer competitive pricing with free shipping

One of the best ways to increase conversions is by offering free shipping or discounts when customers make purchases over a certain amount. Not only does this incentivize shoppers to buy more products, but it also encourages them to come back in the future.

We have found that customers are more likely to return to our website if they know they will receive free shipping or discounts on their purchases.”

— Ryan Mckenzie, Co-Founder and CMO at Tru Earth

Since 55% of users abandon orders because extra order costs (mainly shipping costs) were too high, offering some form of free shipping is a great tactic to increase your ecommerce conversion rate—and it doesn’t have to kill your profit margins.

Depending on your business, you don’t have to offer free shipping all year round.

Instead, it can be used to offload inventory, promote specific items, and more—ensuring that you maximize profits.

Beauty Bay offers free shipping with a minimum order value.

Image Source: Beauty Bay

17. Use scarcity marketing

Scarcity and limited-time offers are powerful tools to increase ecommerce conversion rates.

In a study on the “scarcity effect” conducted in 1975, researchers put 10 cookies in one jar and two of the same cookies into another jar.

Participants were then asked to rate the chocolate chip cookies.

The participants gave higher ratings to the cookies in the two-cookie jar. This clearly demonstrates the scarcity of cookies in a jar makes its cookies more attractive to the subject.

Scarcity in digital marketing campaigns helps boost ecommerce optimization conversions in the same way by making your products seem more exclusive and causing shoppers to experience the fear of missing out (FOMO).

Here are examples of scarcity marketing messages:

  • Order in the next 12 hours to get free delivery
  • The sale ends at midnight
  • Only 10 left in stock

By giving shoppers 50% off all of their products for a limited time only, PrettyLittleThing increases the chances of shoppers experiencing the feelings of non-purchase regrets—ultimately encouraging them to make a purchase.

Image Source: PrettyLittleThing

18. Create dedicated landing pages

Since dedicated landing pages target qualified leads, they are a direct conversion tool.

Highly focused on a specific conversion action, they don’t display information that isn’t relevant to getting your website visitors to convert.

A landing page’s main ingredient is your ‘offer’, and this helps personalize the experience that your audience experiences.

Let’s look at Dollar Shave Club’s landing page. Designed with their target audience in mind, it’s clear, concise, and leads them directly to the action they want them to take—“let’s get started”.

Image: Dollar Shave Club

In Shogun’s page builder app, you can choose to build your dedicated landing page from scratch or use one of the pre-built templates that are available.

Optimize for increased conversion rates to impact revenue

Improving your conversion rate is by far the easiest way to boost your online store’s revenue, and it should be an integral part of your marketing strategy.

Depending on how your website is currently set up, there are more than likely a number of changes you could implement to increase your conversion rate and generate more sales with your existing website traffic.

This process can be made easier by using the ecommerce conversion hacks we listed in this post—and utilizing tools like Shogun Page Builder to customize your pages quickly—ultimately leading you to increased revenue faster.

 

#cta-visual-pb#Maximize your store’s conversionsBuild high-converting landing pages that turn visitors into customers with the best page builder for Shopify and BigCommerce—no coding needed.Start designing for free

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