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What is an ecommerce store 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.
That said, a conversion 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 to a newsletter, engaging with your online chat, and more.
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 rate?
It’s easy to calculate your ecommerce conversion rate in the following three 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.
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 September 2021 is 1.74%.
This is a -0.06% decrease from the previous year when it was 1.80%.
Below you can see the average ecommerce conversion rate for each month from 2020 to 2021.
There is a natural ebb and flow that changes with the seasons (or a pandemic), but rates vary between 1.5% and nearly 2.6%.
For Shopify stores that want to increase their conversion rate: Littledata surveyed 2,827 Shopify stores in October 2021 and found the average conversion rate for Shopify was 1.6%.
What is a good conversion rate for ecommerce?
You want your store to achieve above the average ecommerce conversion rate of 1.74%. When it does, it’s an indicator that your ecommerce store is performing well.
For Shopify stores: A conversion rate of 3.5% would put you in the best 20% of Shopify stores, and more than 5.1% would put you in the best 10%.
What is a bad 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 1.74% average—it’s time to act fast and improve it.
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 rate by industry—how does your store perform?
The ecommerce conversion rate you decide to target will vary depending on the specific industry your online store operates in.
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
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 a full behavioral history for each user
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.
Direct customer feedback
Incoming feedback widget
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
Metrics you should be tracking to optimize for conversions
There are metrics you should track that will help you measure your ecommerce conversion rate. Here are a few:
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.
The next step is to determine the KPIs for each of the metrics you have chosen to track.
#cta-visual-pb#<cta-title>Want to create a high-converting Shopify store that looks amazing?<cta-title>Start optimizing your store for better conversion rates today with Shogun Page Builder.Start building now
18 ways to increase your ecommerce conversion rate
If you’re searching for ways to enhance your store’s conversion optimization game, try the following tactics:
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.
5. 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 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.
6. 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.
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.
7. Offer competitive pricing with free shipping
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.
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.
8. 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.
9. Enable shopping via social media platforms
As of July 2021, Instagram has 1.38 billion monthly active users, and Facebook has 2.85 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.
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.
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.
10. 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?
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.
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.
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.
This will help to reduce misclicks and make it easier for mobile users to navigate your website.
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.
15. 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.
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.
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.
Making the visitor’s browser download a large number of files before loading your website can significantly slow down your load time.
16. 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.
17. Customize your store’s pages with Shogun
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 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.
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.
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.
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”.
Increase your conversion rate and the revenue will follow
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 traffic.
This process can be made easier by using the ecommerce conversion hacks we listed in this post—and utilizing tools like Shogun’s page builder to customize your pages quickly—ultimately leading you to increased revenue faster.
#cta-visual-pb#<cta-title>Want to customize your Shopify store’s pages to get a high conversion rate?<cta-title>With Shogun Page Builder you can include CTAs, product reviews, videos, and more.Try out Shogun for free
Michelle Deery is a writer and strategist for B2B SaaS companies. She writes content that helps brands convert visitors into paying customers.