Ecommerce conversion rate is a key performance indicator (KPI) that measures the percentage of website visitors who perform a desired action, such as making a purchase. A higher conversion rate reflects the effectiveness of your ecommerce website in turning visitors into customers.
To calculate your conversion rate, simply divide the number of conversions (purchases) by the total number of website visitors and multiply the result by 100 to get a percentage.
Conversion rate = (conversions / website visitors) x 100
Easy, right? Unfortunately, calculating your conversion rate is a lot easier than increasing it. Businesses face lots of challenges when trying to optimize their ecommerce conversion rates.
For one thing, limited resources can make it difficult to implement sophisticated tools and strategies. What’s more, ecommerce businesses (especially smaller ones) usually struggle with fierce competition, making it difficult to stand out in the crowded online marketplace.
But improving your conversion rate is well worth the effort for several reasons:
A good ecommerce conversion rate will vary based on industry, but the average is generally around 3%. According to data from Statista, the food and beverage had the highest average conversion rate at the end of 2023, at 3.7%. It’s immediately followed by beauty and healthcare (3.3%), general apparel (2.6%), and home goods (2.4%).
Of course, the average conversion rate isn’t necessarily a good indicator of what your conversion rate will be, especially if you’re a smaller ecommerce business. Research has found that the average Shopify store has a 1.4% conversion rate, and those with a 3.3% conversion rate are in the top 20% of Shopify stores.
Some conversion-boosting changes don’t cost anything but your time. By doing research, getting creative, and working hard, you can implement many simple changes that increase conversions.
However, as your budget increases, using software will help you accelerate conversions even more efficiently. In this section, we’ll review some of the most popular tools for improving conversion rates.
User experience and design tools help business owners optimize their ecommerce websites by providing insights into user interactions. With features like heatmaps, session recordings, and A/B testing, these tools allow businesses to understand user behavior and identify areas for improvement.
A/B testing and optimization tools let you experiment with different variations of website elements to identify the most effective ones. By running A/B tests on headlines, CTA buttons, page layouts, and more, you’ll be able to determine which variations resonate best with your target audience. As you continue to experiment, your bounce rate will go down and conversions will go up.
Analytics and data analysis tools unearth valuable insights into user behavior, traffic sources, and conversion pathways. When you leverage data-driven insights, you’ll be able to make informed decisions on content, marketing strategies, and website optimizations.
How can you increase ecommerce conversion rates? We’ll share 24 strategies, organized under these 8 categories:
Optimizing conversions isn’t about making your best guess or going with a gut reaction. Instead, you should collect and analyze data—not just once, but frequently. According to the CEO of Convert.com, businesses working on conversion optimization projects should spend 20% of their time understanding problems and getting insights into user behavior and 20% of their time designing, developing, and testing (the remaining time is spent on project management).
Let’s break this down a little more.
How do users typically interact with your pages? What do they click on, and when do they scroll? What pages do they look at most often? How far do they make it down the conversion funnel before abandoning their purchase?
Before implementing changes on your site, you should be able to answer these questions. When you understand user behavior, it’s easier to understand the reasons behind low (or high) conversion rates.
Using tools like the ones discussed above, monitor user behavior and interactions with your site. Track things like page views, click-through rates, and user journey paths. With this data, you’ll be able to understand how visitors navigate your site, identify popular products or pages, and recognize potential bottlenecks in the conversion process.
Your website's performance is directly linked to its ability to convert visitors into customers. Load times matter; sluggish websites turn potential buyers away. Similarly, glitches during key parts of the conversion funnel (such as checkout) quickly cause shoppers to abandon their carts. In the early stages of conversion rate optimization, audit the technical elements of your website to learn what can be improved.
A/B testing reveals how variations on your website affect conversions. Whenever you change an element, run an A/B test to see if your change has the desired result. For example, if you offer product subscriptions, testing call-to-action buttons may reveal the wording that increases sign-up rates.
Once you’ve started to see success with your conversion rate optimization, don’t get complacent. Increasing conversions is an ongoing process, not a one-time project. Continually tweak elements and measure their impact.
User experience (UX) looks at how people interact with your website. When their shopping experience is smooth and enjoyable, they’ll be more likely to convert. This section will cover some simple UX improvements that have a big impact.
The loading time of your website directly impacts user satisfaction and conversion rates. When a site takes too long to load, many shoppers will lose interest and explore other ecommerce stores instead.
How long is too long? Well, according to one study, the top 20% of sites load in fewer than 2.9 seconds, and the top 10% load in fewer than 2.2. On the other hand, the worst-performing sites take more than 7.7 seconds to load.
You can streamline your site's loading time by optimizing images and videos, leveraging browser caching, and minimizing unnecessary scripts.
Although conversion rates are generally higher for desktop users than mobile users, it’s essential to create great experiences for both groups.
After all, many people shop using mobile devices, especially smartphones. Ninety-two percent of shoppers between the ages of 30 and 49 bought something with their phone in 2022, and 87% of people between the ages of 18 and 29 report the same thing.
To convert these mobile shoppers to customers, ensure that your website seamlessly adapts to various devices, providing a consistent and user-friendly experience.
Imagine a visitor trying to find a specific product on a cluttered site with convoluted navigation—it's akin to wandering through a maze. To prevent confusion and frustration, keep your navigation menu clean and organized. Streamline categories (having too many options is just as bad as having too few), employ clear labels, and create a logical flow.
Your website should seamlessly guide users towards specific actions, and clear calls to action (CTAs) are the signposts pointing the way. Whether you’re urging visitors to "Buy Now," "Sign Up," or "Learn More," make sure CTAs are prominent, concise, and strategically placed.
Once you’ve addressed some common UX issues, it’s time to dive deeper into the content of your pages.
Visual appeal is a powerful driver of online engagement, so enhance your product pages with high-quality images and videos. With great visuals, you’ll provide potential customers with a detailed and immersive experience. The more they understand about how products look, feel, and work, the more likely they’ll be to make a purchase.
Words carry weight, especially when it comes to convincing potential customers. If a customer is deciding between two similar products from two different online stores, product descriptions can be the deciding factor.
Do your product descriptions use clear, concise language? Do they include essential information such as material, dimensions, unique features, and sizing details? Will the tone resonate with your target audience? If you answered no to any of these questions, you have room to improve your descriptions.
By conveying the value and advantages of your products, you not only inform but also persuade, paving the way for increased conversions.
While features provide the specifics, benefits resonate most with customers. In addition listing features, emphasize how your products enhance the user's life.
For example, if you sell a fitness tracker, highlighting the "heart rate monitoring" feature is good, but emphasizing the benefit of "tracking your health in real time for a fitter lifestyle" is even more compelling.
Personalization helps your brand appeal to more consumers. Here are a few ways to get started.
Segment your users based on behavior, preferences, and demographics. By categorizing users into different groups, you can present targeted promotions, recommendations, and content that resonate with their specific needs.
Imagine this: a new visitor comes to your site and sees an offer for 15% off their first purchase. A loyal customer browsing the store at the same time sees a list of recommended products based on their most recent purchase. It’s a better experience for both, right?
Ideally, your store should adapt in real time, changing based on user interactions. Whether showcasing recently viewed items, suggesting related products, or providing personalized recommendations, a dynamic site keeps users engaged. This adaptability increases the likelihood of conversion by presenting relevant information at the right moment.
The average cart abandonment rate is around 70%—and even more people leave ecommerce sites before adding anything to their carts. But these lost opportunities don't have to stay lost. You can use retargeting ads to reach visitors who leave your site without converting.
Retargeting ads remind them of your products, encouraging them to visit the store again (and sometimes even offering personalized discounts or perks). This persistence can be the gentle nudge needed to bring back interested visitors and change them into customers.
Building trust is an essential element of conversion rate optimization.
The presence of secure payment icons and trust badges reassures potential customers that your website is legitimate. Prominently display these elements on your website to communicate your commitment to a secure and trustworthy online environment.
Whether it's a money-back guarantee or a hassle-free return policy, a satisfaction guarantee helps hesitant shoppers feel confident enough to make a purchase. A guarantee shifts the perception from risk to reward, encouraging potential customers to convert with the knowledge that their satisfaction is your top priority.
To reap the benefits of a shopping guarantee, add Norton Shopping Guarantee with Package Protection by EasyPost to your site.
The app, which is free to download and use, offers customers the chance to purchase package protection at checkout and comes with a $1,000 shopping guarantee, as well as other benefits. It also lets you add trust badges to your store, showing that you’re verified by one of the most trusted names in cybersecurity.
Social proof is a potent tool for building trust—77% of shoppers seek out websites with ratings and reviews, and 45% won’t buy something if it doesn’t have reviews. By showcasing customer testimonials, reviews, and user-generated content on product pages, you not only build credibility but also provide tangible evidence of your product’s value.
Sometimes, potential customers need a little extra motivation to buy something—and nothing does the trick like a discount or sale.
Discounts and sales have a lot of power to drive conversions. In addition to attracting attention, they also encourage visitors to take immediate action. One study examined specific industries to see how promotions affect conversion rates; let’s look at a few examples.
Urgency-inducing tactics are great tools for prompting swift buying decisions. By emphasizing scarcity or time constraints, you instill a fear of missing out, compelling users to act promptly. So don’t hesitate to add that “Last Chance” banner to your site!
The checkout process is one of the most important stages of the conversion funnel. If shoppers encounter issues during checkout, they may abandon their cart in frustration. To avoid that, use the following tips.
Shipping is a common barrier to conversion. With 66% of consumers expecting free shipping on all orders, charging for shipping can cause people to avoid your brand. In fact, extra costs like shipping are the second most popular reason why people abandon their online carts. Consider making shipping and return shipping free to attract and convert more customers.
For first-time site visitors, needing to create an account can be a deterrent. Offering a guest checkout option removes unnecessary steps, reducing friction in the user journey. With hassle-free transactions, you’ll find that more people make it through the checkout process.
Everybody has different payment preferences when shopping online; some prefer credit or debit cards, others like using PayPal, and some want the option to buy now and pay later. You can cater to diverse preferences by offering a variety of payment methods.
What if potential customers have questions and concerns that aren’t directly addressed on product pages? To help them find answers, provide a variety of easy-to-access support types.
Live chat is one of the simplest ways for customers to ask questions about your products. By offering real-time support via a chatbot, you can address queries promptly, alleviate concerns, and guide potential customers toward conversion.
A chatbot isn’t the only way to help customers overcome their concerns. Create a comprehensive frequently asked questions (FAQ) page that addresses common queries. You might want to include information about the following:
This not only demonstrates your commitment to customer support but also contributes to a smoother and more efficient conversion process.
As you can see, increasing conversions isn’t the work of a day. With a variety of strategies and tools at your disposal, though, you’ll make progress toward a higher conversion rate. And Norton Shopping Guarantee with Package Protection by EasyPost will help you get there.
Available on the Shopify store, the app provides sitewide trust badges, package protection, and a shopping guarantee to improve the buying experience from start to finish.
Download it here to get started.