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Ecommerce conversion rate is an important benchmark for businesses. Improving conversion rates is an ongoing task to make things better. Small companies might struggle more. You can't sit around waiting for people to buy your products. You need to take action and these tips will help you make real changes to improve ecommerce conversion rates.
What is a Conversion Rate for Ecommerce Sites?
An ecommerce conversion rate is the percentage of visitors to a website who complete a desired action, such as buying something.
How to calculate the conversion rate for ecommerce sites:
Ecommerce Conversion Rate = Orders ÷ Visits to Your Website
Google Analytics frequently refers to the "ecommerce conversion rate" as compared to Shopify Analytics, which describes it as "the online store conversion rate". Therefore, when you hear terms such as online store conversion rate or transaction rate, they all mean “ecommerce conversion rate”.
Why is Ecommerce Conversion Rate Important?
Ecommerce conversion rate shows the ratio of transactions to visits. A higher ecommerce conversion rate means more sales. Better conversion rates cut down on abandoned carts, which results in more completed sales and a better return on investment.
Ecommerce conversion rates show if your marketing brings in people who are likely to buy. Also, your ecommerce conversion rate helps you see how easy your website is to use.
How to Measure Ecommerce Conversion Rates?
Ecommerce conversion rates are formulated by determining the share of visitors who buy something out of the total number of visitors to an online store. In addition to the checkout, you can also follow other conversions:
- Adding products to the cart: A shopper puts an item in their cart but doesn't finish buying it. This still counts as a conversion you should track to recover later.
- Creating accounts: People who sign up for an account might not have bought anything yet.
- Signing up for newsletters: If you send marketing emails, keeping track of how many visitors join your mailing list can show how interested they are. This allows you to build connections with customers, strengthen your relationship, and inform them about new offers.
What Affects Ecommerce Conversion Rates?
Traffic Sources and Quality
When many people visit a site directly, it often shows they're loyal to the brand and know it well. In 2023, orders from direct navigation averaged about $167, topping all other sources (source: Statista).
Many website visits don't end in purchases. This happens because shoppers might change their minds or just use the platforms to look for products. To tackle this, keep an eye on your ecommerce funnel conversion rate. This rate shows how many visitors move through each step of the sales funnel, from finding your site to adding items to their cart and buying something. Tracking this metric helps you find where people might be dropping off in the buying process and optimize your website to boost ecommerce conversion rates.
Moreover, 43% of ecommerce website visits come from organic Google searches (Source: Kinsta). Because people still search relevant terms, SEO tactics are working well.
Product Type and Pricing
In the third quarter of 2024, e-commerce sites on beauty and makeup products received the maximum conversion rates. Conversion rates in some sectors included:
- Beauty & Makeup: 2.3%
- General Footwear: 2.2%
- Toys and Learning: 2.2%
- General Handbags & Luggage: 1.0%
- Electronics & Accessories: 0.9%
- Home Furniture: 0.7%
Based on ecommerce conversion rate statistics, cheaper products or impulse buys tend to have higher conversion rates than expensive products.
Devices
The highest average order value consistently comes from desktop purchases, with an average of $170. It shows that larger transactions are often completed on desktop computers. However, mobile devices lead in order completion rates. In the final quarter of 2024, smartphones made up for over 75% of global retail site visits and contributed to nearly two-thirds of online shopping orders.
As mobile shopping keeps growing, websites optimized for mobile tend to get better conversion rates. Mobile shoppers have unique habits and wants so creating a smooth shopping experience on smartphones can improve ecommerce conversion rate.
Ecommerce Conversion Rate Optimization Tips
Ecommerce Conversion Rate Optimization (CRO) aims to boost the percentage of website visitors who complete a desired action, like buying something. Online stores want to increase sales, but CRO can also help to cut down on abandoned carts or get more people to add items to their carts.
20 important tips to improve ecommerce conversation rates:
1. Reduce Load Times
When a website loads, it doesn't just annoy users - it makes them leave. 53% of visits are abandoned if a mobile site takes longer than 3 seconds to load. To speed up your site try these ways: compress image file sizes, remove scripts you don't need, and put off loading parts that aren't crucial right away.
2. Optimize Web Design
Users will only notice something if it looks catchy within a few seconds. So, make sure that not only do you have the homepage with high-quality images, but the site also stands out with a minimalist design which is, however, fully intuitive.
3. Simplify Your Site Navigation
The easier it is for customers to find what they’re looking for, the more likely they are to convert. Simplify your site structure. Use well-organized menus and intuitive product categories.
Over 60% of smartphone users are more likely to buy from businesses whose mobile sites or apps provide personalized product recommendations tailored to their interests. This is a wise decision for your website to have product filter features.
4. Make Your Website Content Better
Your website content should focus on how the product helps solve problems or meets needs, not just its features. Use words that make people want to act, like "Shop Now," "Get Started," or "Buy Today."
5. Simplify the Checkout Process
If possible, cut down on the number of pages in the checkout process. Make it as simple as possible. A one-page checkout lets people quickly review their order and finish without more clicks. To speed things up, turn on autofill for people who've bought from you before.
6. Optimize for Mobile Devices
In fact, mobile phones dominate global digital commerce website visits and contribute to the largest share of online orders. In 2023, 69% of online shoppers in the UK will use smartphones for online purchases, according to Statista.
As more people shop on their phones, your site should work on mobile devices. This will improve mobile ecommerce conversion rate. Make sure you can read the text without zooming in, the buttons are big enough to tap, and the images are clear and not pixelated.
7. Show Your Value
“The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.” (Seth Godin)
Show your value clearly. Express this message on your homepage and product pages.
8. Provide Free Shipping
According to a report by The State of Shipping, 62% of consumers won’t spend with a retailer without free shipping. Shopify Plus Commerce Trends 2023 shows people order about 2.5 items with free shipping, compared to less than 2 items with paid shipping.
To boost your average order value (AOV), you should offer free shipping for orders above a certain amount.
9. Add Multiple Payment Methods
Give customers popular payment choices like credit/debit cards and PayPal. If you sell to international buyers, include localized payment methods like Alipay.
10. Make an Easy Return Policy
Let customers return items, no questions asked, within a fair time period (for example, 30 days). DataReportal shows that an easy return process is the third most important factor affecting online purchases for internet users aged 16-64, after free delivery and discounts or coupons. Show your return policy on product pages, in the cart, and at checkout so shoppers can check it before they buy.
11. Enhance Product Images
High-quality product images help people decide what to buy. Keep all product photos looking the same quality with good lighting to look professional.
12. Add Videos to Product Pages
Along with images, product videos cut down on uncertainty and show customers what they're getting. Focus on the most important features and benefits in the video to answer any questions customers might still have.
13. Use User-Generated Content (UGC)
“User-generated content (UGC) is another powerful tool. It’s essentially free advertising and lends authenticity to your brand. Encourage your customers to share their experiences with your products on social media.” (Source)
Use user-generated content. Let customers upload pictures of themselves using the product. Show these on product pages or social media. Add a shoppable feed of Instagram pictures featuring your products.
Customer reviews help build trust. For 90% of American customers, reviews play the biggest role in their decision to buy. Show customer ratings and reviews on product pages.
14. Test CTAs
Put CTAs in relevant parts of the page such as under product details or after customer reviews. Make sure CTAs are easy to see without scrolling.H3
15. Use Limited-Time Offers
Put countdown timers of limited-time deals or flash sales at product pages or during checkout. Showing the remaining quantity of each stock item, for example, "3 left in stock", can inspire customers to buy quickly.
16. Give Shoppers a Guest Checkout Choice
Being required to create an account is one of the most common reasons for abandoning a shopping cart. Letting people check out as guests can knock down a major obstacle. You can ask customers if they'd like to make an account after they've paid, maybe offering a discount or loyalty points to sweeten the deal.
17. Keep Your Prices Competitive
Regularly monitor competitor pricing. Be upfront about your pricing. Don't forget to include taxes, shipping, and handling fees in the total cost. This way, customers won't face any surprises when they're ready to pay.
18. Display Shopping Cart Items
Let customers see what's in their cart throughout the buying process. Put a cart icon on every page that shows how many items are in it and the total cost.
19. Create Detailed Product Descriptions
Add essential specifications, measurements, materials, care instructions, and use cases. Product descriptions should be thorough and well-crafted. Make sure they are SEO-optimized with relevant keywords to draw in organic visitors.
20. Send Abandoned Cart Emails and Texts
Launch a series of reminders, kicking off with a gentle prompt and ramping up to a limited-time deal. Work personal product suggestions and images of abandoned items into emails.
21. Use Chatbots
Use chatbots to answer common questions, suggest products, and help track orders. Start chatbot conversations based on how users act on your site.
22. Start Subscription Programs
Subscription plans can increase customer lifetime value by turning one-time buyers into loyal customers. Give subscribers special deals or early access to sales.
23. Make Customers Feel Safe
Show your contact information, including phone numbers and live chat options. Make sure your hours of availability are clear so customers know when they can reach you. Give satisfaction guarantees or warranties on products to make buyers feel secure.
24. Build Emails Campaigns
Email marketing has a 4.29% conversion rate for Shopify stores, higher than other tactics. So, growing and keeping an email list is important to retain customers and encourage them to buy again. Give discounts or free stuff to get email sign-ups. Importantly, personalize emails, suggesting products based on what customers have looked at or bought before.
25. A/B Testing
Continuous testing helps improve your website and boost sales. Try out different designs for CTA buttons, text, placement, and messages to see what your customers like best. Also, try different layouts for your product pages, home page, and checkout process.
26. Create Personalization Strategies
Use browsing history or previous purchases to show them products they might like. Give customers deals and shipping choices that match where they live. Use what they've bought before to send them offers or products they might like.
27. Optimize FAQs
An FAQ page can help customers buy more by answering common questions quickly. Split your FAQs into groups that make sense, like shipping, returns, how to pay, and details about products.
Conclusion
Improving ecommerce conversion rates needs smart choices based on data and always optimizing the website to match what customers expect. Begin with a few changes, track how they do, and keep fine-tuning. Each little fix counts, and as time goes on, they'll build a tougher, more profitable online shop.