“Conversion Rate” in eCommerce is commonly referring to the ratio between the number of visits to an online store and the number of purchases made in a given period of time.
Success with your online ecommerce store relies on your stores ability to turn window shoppers into paying customers – thus conversion rate being the metric of all metrics.
If your website received one thousand visits last month and made ten sales, your conversion rate would be 1%.
If you’re currently managing an online eCommerce CMS Website store like Magento, Shopify or WordPress, it’s likely that you immediately compared that 1% metric mentioned above to your own store’s conversion rate.
How does it compare?
A dataset of over $13B in ecommerce transactions was analyzed by Compass, they found that the average conversion rate in eCommerce is 1.33%
If you’re operating at a 3.6% conversion rate or higher, you’re among the industry top performers.
Form this research there are some patterns that have delivered COG Digital some great eCommerce insights.
- Among the highest-performing stores Google Ads perform better than Facebook Ads.
- For the average store, Facebook Ads and Google Ads have similar performance
- Among average stores, the Organic channel (from Google search) is the worst-performing
- For high performers Organic is one of the best converting channels
- Email is, by far, the highest-performing channel for ecommerce, with stores in the top stores achieving conversion rates of almost 10%.
Your customers can behave very differently, depending on the type of online product they are buying, who they are buying from and where they are located – therein lies the problem with generalizing conversion rates.
These are key factors that affect eCommerce conversion rates.
For example, people looking to buy a hardware products online will not follow the same path to checkout as compared with a customer who is buying a fast fashion item.
A HUGE factor that influences conversion rates is price, naturally. More expensive products require a more complex purchasing process than less expensive products. When you need to visit a website a couple of times to make 1 purchase, that eCommerce website conversion rate will drop. Just take a second to address how many eCommerce websites you visit prior purchasing a car. Then, how much research was invested in purchasing a toothbrush.
What is a good Conversion Rate for your online eCommerce Shop?
Firstly, compare your business with others that are similar to it in size, business model, geographic location and the sort of eCommerce CMS Website platform they’re using. These are the key factors which influence in a large way what can be seen as “great conversion rates.”
When COG Digital build an eCommerce website, we consider these factors to deliver your online business the best possible data set, and more importantly the key insights that strategic decisions can be made from to better improve your online eCommerce store.
If you’re serious about getting a better conversion rate for your business and dominating your market and maximizing — down to the last dollar — your online eCommerce advertising ROI, you must address conversion rate.