As a store owner, your online store’s e-commerce conversion rate is perhaps the most important indicator of your business’ viability. The concept itself is relatively easy to understand. The real challenge is improving your conversions.
Table of contents
- What is a conversion?
- Average E-Commerce Conversion Rates
- What is the e-commerce conversion rate?
- What is a conversion rate (general definition)?
- Common misunderstandings about e-commerce conversion rates
- How is the e-commerce conversion rate measured?
- Benchmarks for E-Commerce Conversion Rates
- How to Calculate Your Conversion Rate
- How to Improve Your E-Commerce Conversion Rate
- Invest in optimizing your e-commerce conversion rate
- E-Commerce Conversion Rate FAQ
What is a conversion?
You speak of a conversion when someone performs a desired action on your website. Website owners and their digital marketing teams individually determine in advance what they define as a conversion.
A conversion could be, for example, south africa email list interacting with pop-ups or ordering your products. The decision is entirely up to you.
Typically, companies label the actions that have a measurable impact on their online business as e-commerce conversions. This usually focuses on orders or activities where someone shares contact information such as an email address. Such information allows you to take further marketing actions in the next step.
Average E-Commerce Conversion Rates
Average e-commerce conversion rates are around 2.5% to 3%, according to industry experts. However, that doesn’t mean that this is the optimal range for your business. A baseline of 2.5% is a good place to start. From there, advantages of affiliate marketing you can continue to work to improve the value with conversion rate optimization tactics.
Shopify analytics app LittleData conducted a comprehensive survey on Shopify store conversion rates and found that the average conversion rate for Shopify stores is 1.4%. If you’re above 3.2%, you have a very good e-commerce conversion rate – and are in the top 20% of all Shopify stores. If you’re above 4.7%, you’re in the top 10%.
What is the e-commerce conversion rate?
When you hear the term e-commerce conversion rate, it is usually referring to the orders in a store. This value is calculated using a more specific formula:
E-Commerce Conversion Rate = Orders / Visits to your website
So if you have 1,000 visits to your site and 50 of those visits result in an order, your e-commerce conversion rate is (50 / 1,000) = 0.05 or 5%.
Depending on the data source, this metric is called something different. Google Analytics calls it “e-commerce conversion rate.” This is the most common name.
In Shopify Analytics, you’ll find it as “online store conversion rate,” while other analytics tools call it “transaction rate” or “order rate.” All terms mean the same thing.
TIP: Use Shopify’s built-in reporting and analytics tools to make better decisions faster. Choose from over 60 pre-built dashboards and reports, burkina faso leads or create your own, to identify trends, capitalize on opportunities, and optimize your decision-making.
What is a conversion rate (general definition)?
A conversion rate is the percentage of the total number of visits to a website that result in a conversion action. It is calculated using a simple formula:
Conversion rate = number of specific actions in a certain period of time / total number of visits to your site in the same period
For example, if your conversion action is newsletter signups and you have 1,000 visits to your site and 100 newsletter signups in a period of time, your conversion rate is 100 / 1,000 = 0.10 or 10%.