The eCommerce conversion rate is a crucial KPI to measure when you have an online store. Here's all the information you need about this KPI, what it is, why it's important, how to calculate it, and way more!
The eCommerce conversion rate is the proportion of people who did the desired action among your total number of visitors over a specific period of time. In eCommerce, it’s the ratio of transactions to sessions in percentage. It’s an important metric to measure profitability and give a good indication of whether your marketing strategies are working or not.
To calculate your eCommerce conversion rate, you take the total number of conversions and divide it by the number of website visitors related to your eCommerce website. You can track this rate on your Google Analytics account.
It all depends on your retail industry because it could slightly impact the eCommerce conversion rate benchmarks, but the average eCommerce conversion rates are around 2.5-3%. A higher conversion rate than 3% is considered better than average. Keep reading if you want some tips on how to optimize it as much as possible.
Below 2% is a low conversion rate, and you should put more effort into conversion rate optimization (CRO). Maybe edit your call to action (CTA), optimize the user experience for your online shoppers, or rethink your marketing efforts.
Your eCommerce conversion rate can be added to multiple different types of reports.
Ecommerce report template
A report with all the most important metrics for your eCommerce site, like shopping cart abandonment, click-through rate (CTR), total sales, product checkouts and of course, your eCommerce conversion rate.
Digital marketing report template
This report gives you a good view of your eCommerce marketing strategy metrics and average conversion rate from SEO to social media and PPC.
Google analytics report template
Plug your conversion goals, track your website conversion rate, new customers, and much more.
There are a few things to remember when tracking your eCommerce conversion rate. Here are the best practices to keep in mind:
Make your eCommerce store unique
There are many online retailers and online stores, so you want to stand out. Add unique functionalities to your site, don’t neglect your smartphone users, and ensure your eCommerce business is optimized for mobile devices.
User experience and conversion optimization
You can do many things to improve the online shopping experience for your site visitors. For example, you could do a/b testing on landing pages for different product categories, write better messaging for product pages, play with pop-ups and optimize the checkout process.
Send out emails
Potential customers might love your product but leave your site with a full cart. So why not remind them how excellent your products are by setting up a marketing email campaign. Collect email addresses from a form on your website, save them when they make a purchase, or sign up to your eCommerce store.
