E-commerce Conversion Rate Benchmarks
Arguably the most important metric for e-commerce websites is their conversion rate; the metric details – in essence – how well your site is performing to reach its objective: sales. Increasing your conversion rate will improve the results of all your marketing efforts, making it easier for you to make educated decisions on how to optimise your site to do more of what it is designed to do.
What is a good Conversion Rate in E-Commerce?
There are many factors that influence conversion rates – think of your product type, price, store appearance, product popularity, etc. As a general rule, you should aim for at least average results in your category. However, you only get there and beyond by systematically improving on today’s efforts and successes. Search online for an easy tool to help you benchmark against your industry to see if your conversion rates match up.
How is E-Commerce Website Conversion Rate Calculated?
The calculation for measuring the overall conversion rate of an Ecommerce store is widely accepted and well-understood.
Conversion rate = Sessions with transactions / Total sessions.
Note the use of “sessions” rather than unique visitors. A session refers to a visit by an individual within a given time period, often 30 minutes. If a customer visits twice during the same period, it will count as one session. If, as in the example above, a customer visits again, after a thirty minute period has elapsed, the second visit will be recorded as a separate session.
A “session” is a superior indicator of buyer intent, as opposed to a unique visitor, because it comprises a self-contained shopping “event”. The same customer may visit a store multiple times during a certain period, with each visit representing an opportunity to make a sale for the online retailer. Bear in mind:
- Mobile conversion rate may be half that of desktop.
- Conversion rates during shopping events such as Black Friday are much higher.
Top Reasons for a Low Conversion Rate on E-Commerce Sites
1. Your Site Makes a Bad First Impression
One common reason for a low conversion rate is that people don’t like what they see when they land on your site or, even worse, they can’t find the information they need.
2. You Don’t Know Who You’re Selling To
When you’re thinking about how to improve your conversion rate, another issue to consider is whether you’re clear on who your customers are. If you’re not marketing to the right people, then you’ll end up with a low conversion rate, and sales will decline.
3. Your Site Isn’t Optimized
If your site’s experiencing a decline in conversion rate, another factor to look at is search engine optimization (SEO). SEO is all about optimizing content and web pages so they appear when people search online, using keywords related to your products.
4. Your Product Images Are Poor-Quality
Images matter for conversions, and that goes for e-commerce sites, too. The better your product images look, the more likely your product pages are to convert.
5. Your Copy Isn’t Persuasive
For best results with e-commerce conversions, copy should be informative, error-free, well-written, descriptive, persuasive, AND emotional.
Do you need help optimizing your e-commerce store for a higher conversion rate? Get in touch with us today!