What is a good conversion rate for my online sales?

Understanding conversion rates (CR) - the good, the bad and the lovely

Every online business wants to go big. There's lots of competition. The conversion rate is a powerful way to beat it and build your business.

What is a conversion rate?

Conversion rate. Noun. The percentage of website visitors who take a preferred action in a specific period. In ecommerce, this is usually an enquiry or a purchase.

Here's an example. 500 000 visitors arrive at a website selling biodegradable cleaning products in April and 5 555 of them buy something. The site's conversion rate for that period is 5 555 / 500 000 x 100/1 = 1.1%.

What's a great conversion rate?

Like anything in business, it depends. According to BigCommerce's industries analysis, average ecommerce rates are between 1% and 2 %.

Conversion rates can differ across platforms.

Little Data reports that Magento's average is 1.1%. Stores that achieve 3.0% are in its top 20 percent and those that get 4.6% are in its top 10 percent.

In the same period, Little Data reported that WooCommerce's conversion rate evens out at 0.4%. Woocommerce stores with more than 2.6% are in its top 20%, and those greater than 4.2% are in its top 10%.

It also reports that Shopify's average conversion rate is 1.6 %. Merchants with more than 3.6% are in its top 20% and those with above 5.1% are in its top 10%.

Conversion rates differ across sub-sectors, too. The ecommerce Food and Drink sector averages at 1.4%; its Kitchen and Home Appliances at 2.7%. You'll find a handy conversion rate calculator for your sub-sector here.

Remember, averages are just that - average. Every business is unique. You may find more value in setting and raising your own benchmarks if your company is in its early stages, or sales have yet to scale.

"Most current ecommerce platforms are inherently capable of decent conversion rates," ShopCreatify founder Ross Allchorn points out. "It's how you use them that makes all the difference."

How do I improve my online shop's conversion rate?

There are many factors influencing ecommerce conversion rates. Here are a few ways to raise your CR.

1. Add better quality photos

Clear, clean imagery helps the visitor decide if the product is right. Can they see it from a variety of angles? Prioritize well-lit, high definition, web-optimized shots. Here are more image tips from Shopify itself.

2. Improve your product descriptions

• Check your grammar and syntax. Make sure there are no typos or spelling errors. Avoid overused phrases like "troubled times". Use a free tool like the Hemingway app to check the readability of the description.
• Bring the description alive by telling a story. Describe how the product makes a happy user feel. Use emotive descriptors like "gorgeous" and "stunning".
• Substantiate any subjective claims with facts and details.
• Give full product info, briefly.
• Display the price.
• Use clear and confident Calls To Action (CTAs).

3. Enhance your store's user experience (UX)

Audit your product offering. Do you need to arrange items better? Is there too much going on?

• Test site navigation. Use heatmaps, eye tracking, and a customer test panel with demographic targeting. Can a new visitor buy something without becoming confused? Can an undecided customer get help easily? Go for a suitable and responsive theme with excellent User Interface (UI) and UX design.
• Optimise the search function. Make mobile search easier, use autocomplete, offer search result filters, build custom landing pages, and recommend related products.
• Reduce user friction with logged out browsing and a short, simple purchase process.
• Be transparent. Include messaging about shipping fee structures, delivery times, availability of stock, and payment security.

4. Build trust

Online customers can't touch goods, or take their purchases home with them immediately. They may be hesitant to add credit card details online.

• Add company details including owner or founder name, phone number, and address.
• Display social proof in the form of reviews and testimonials.
• Add trust seals, Ts & Cs, and guarantees.
• Describe your company history, values, and offerings on the About Us page.
• Add a page with positive media coverage, awards and achievements.

Conversion rates in the ecommerce ecosystem

There are other metrics that can raise or lower a CR. A great product might not sell if it has poorly-targeted social media ads, for example.

Remember that a conversion rate keeps rising with strategic, consistent, and incremental changes. Every little bit helps, so give it a go today!

TL;DR? In short, we can do it for you. Let us take your conversion rate optimization efforts through the roof, with ConversionBoost.