“Boosted our conversion rate from 2% to 7%” – Reever Botha, PuraU
By: Andy Haskins
Getting visitors to your site is easy; you can easily buy traffic, but the problem is most people don’t convert. This is not for one or two reasons but several reasons. Low conversions aren’t a sign that your website is bad, your product/service is poor, or there is no need for it. Rather, the lack of conversions can be due to a number of factors.
In this ultimate guide, you’ll learn all about increasing your ecommerce conversion rate. This way, you will get more revenue and profit from the same traffic that comes to your site.
We also have covered each topic in a separate article, so if you want to read more, learn more, or something is unclear, you can read everything in detail by clicking on the respective links.
We will talk about the following topics in this guide:
1: What is an eCommerce conversion rate?
2: Why is eCommerce conversion rate important?
3: How to calculate eCommerce conversion rate?
4: What are the benefits of increasing my eCommerce conversion rate?
5: How to increase eCommerce conversion rate?
6: What is the process to improve e-commerce conversion rate?
By the end of this guide, you will have all the information and tools you need to increase your conversion rate and a clear understanding of how to implement these changes.
Let’s get started!
An eCommerce conversion rate refers to the percentage of successful transactions on your eCommerce website compared to the total number of visitors that come to your site. The conversion rate usually includes completed sales, sign-ups, trial downloads, and any other conversions deemed valuable by the business.
Following are some examples of successful eCommerce conversions:
Usually, an eCommerce conversion rate is measured as a percentage, and it can vary widely depending on the business. For example, while eCommerce websites in certain industries may have an average rate of 2.5%, high-traffic eCommerce sites in other industries may have an average conversion rate of just 1%.
However, just better conversion not always means more sales.
Your site might have a high eCommerce conversion rate but still not generate enough profit to justify the effort, or the opposite could be true; your site might have a low rate but still generate more profit than sites that have higher conversion rates.
The example would be if you have a conversion rate of 2.5%, but the average cart value is $5, then your site will only generate $0.125 in revenue for every visitor. On the other hand, if you have a conversion rate of 1% but the average cart value is $1000, then your site will generate $10 in revenue for every visitor.
Therefore, it is important to track not only the conversion rate but also the overall revenue, the average cart value, and other key metrics to get a full understanding of your eCommerce website’s performance.
You can track your eCommerce conversion rate using various tools such as Google Analytics, but it is important to understand the factors that influence your it and how to improve that. (We will talk later in the article)
How to Use Google Analytics to Track Your Conversion Rate?
Well, Google Analytics is one of the most popular and easy-to-use tools available for tracking your conversion rates.
Since it belongs to the Google family, you can easily install it on your website and track your eCommerce conversion rate in real time.
I’m sure you must have heard about the great features of Google Analytics, but for those who are not aware, let me give you some information.
Google Analytics offers an in-depth analysis and tracking of your website’s visitors, user behavior, traffic sources, marketing campaigns, and more.
To get started, you can simply install the Google Analytics tracking code on your website, which can be done in just a few minutes.
Once you have the tracking code installed, you can start analyzing your ecommerce site and important key metrics like bounce rates, average time on page, and more.
Now that you know how to track your eCommerce conversion rate, let’s move to the next step – why conversion rate optimization is important and how to increase it.
An effective eCommerce website must have a high conversion rate; otherwise, it will not be able to generate good profits.
The biggest reason is that a high eCommerce conversion rate helps you to get more leads, sales, and ultimately more revenue from the already existing traffic.
Who wouldn’t like to make more money from the same amount of traffic and save on paid ads? That’s why you should focus on increasing your conversion rate and overall sales.
With that said, let’s talk about the reasons why it is important to track and optimize your eCommerce conversion rate:
Studying conversion rate data helps you gain insights into your customers’ behavior. You can track and analyze how they interact with your website, what pages are more popular or how long it takes for them to make a purchase.
These are some of the questions that you can answer by studying your eCommerce conversion.
Let’s say your customers are not converting even after a successful visit to your website. Analyzing your conversion rate data will help you identify the problem and make necessary changes to improve your conversion rate.
Customer behavior is dynamic, and it is important to keep track of your eCommerce conversion rate data to ensure that you are providing a good user experience to your customers.
Studying, learning, and optimizing your conversion value will help you identify your website’s weak points.
You can easily spot the areas that require improvement and then make necessary changes to improve the conversion rate.
It’s important to note that a conversion rate is only as good as the website that it resides on. For instance, if your website has a slow loading time, then it is likely that visitors will quickly leave the website and look elsewhere.
In fact, speed is crucial for better conversion and search ranking. An eCommerce store should load fast to ensure customers get the best experience while shopping on your website.
Low customer acquisition costs:
In many cases, the cost of acquiring new customers is significantly higher thanworking on the retain existing ones. Ecommerce specialists believe that working on your existing customers and trying to increase their loyalty is always beneficial, rather than spending too much money on acquiring new customers.
Only a 1% increase in your conversion rate can result in a 10% or more increase in revenue. In that case, you can potentially decrease the number of visitors you need to acquire to reach a particular revenue goal.
ROI (return on investment) is an important metric for any business. Ecommerce stores are no different.
In easy words, higher ROI means that your business is making more profit from each dollar spent.
Working on your website’s conversion rate will help you maximize the ROI from your marketing efforts.
This can be especially important if you are using paid advertising or other acquisition channels, as you can spend less money while still reaching your revenue goals.
Customer analytics and insights can help you to understand the behavior of your customers and help you understand what strategies and tactics would be most effective for your business.
Analyzing overall website can give valuable insights into customer behavior and preferences, allowing you to optimize your store and website for maximum conversions.
An example would be understanding which pages are most popular or how visitors are interacting with different elements of your website. Do they abandon the checkout process, or do they move away after adding a product to their cart?
These insights can be invaluable in helping you make necessary changes to your website and improving the customer experience.
I don’t need to explain how an improved customer experience can result in higher conversions!
So, that’s it from this section. The importance of studying the data, identifying weak points, and optimizing your website to maximize ROI shouldn’t be overlooked.
Let’s move to the next section about where we will learn calculating conversion rate.
How To Calculate eCommerce Conversion Rate?
Nothing is more important than clearly understandinghow much traffic is converting into paying customers. This is because it provides valuable insights into how well you are currently meeting your customers’ needs. Whether you are wasting resources on acquiring new visitors or struggling to convert existing traffic, calculating conversion rate can provide clear insights into where you need to focus your efforts.
Divide the number of completed transactions or sales on your site by the total number of visitors to your site within a given time period (for example, over the past month) to see how much of traffic has converted.
To get more accurate data, you can use the Ecommerce conversion rate calculator by ConversionWise to track your conversion rates so that you can identify any patterns or trends in your data.
Check this screenshot from Conversion Rate Calculator for Ecommerce by ConversionWise:
Do you see the difference? If you work on your site to optimize your conversion rate and it results in a 1% increase, you could be making an extra 1.5% from the same traffic! If your current rate is 2.5% and 1% increases it to 3.5%, you can see the difference in revenue.
So, only a 1% increase can bring in an additional $1000 /day (1% of $100k/day is 1000$). This isn’t only the benefit you get from e-commerce conversion optimization but each and every campaign you launch.
Here comes the list of benefits you get from focusing on eCommerce conversion rate optimization. Talking about benefits is important because it helps you visualize the value of optimizing your site.
That’s an obvious one. A better-optimized website will get more conversions and result in improved revenue and profits.
Profits and revenue are the ultimate goals. If you can improve your eCommerce conversion rate, then you will almost certainly be increasing your profits!
Most businesses don’t realize that a 1% improvement in conversion rate can result in a huge increase in profits.
If you see that you’re not getting enough conversions, then it’s time to start optimizing your eCommerce website.
This may include optimizing product pages, improving site usability, or experimenting with different pricing or promotional strategies. We will talk in detail about how to optimize eCommerce websites in the later section of this article.
Customer engagement is hard to get but easy to lose. When you make changes (which we will discuss in detail later), they can increase your conversion rate and bring more traffic because people will start talking about your site and sharing it with others.
Let me ask you a question – when was the last time you visited a site and shared it with your friends or on social media?
It doesn’t often happen because most websites are not engaging enough. All you do is visit, look at the products, and leave.
But when you make changes to improve your eCommerce conversion rate, customers will be more likely to share your site and bring more traffic to it.
This means you can engage with customers more often, build brand loyalty, and even grow your business in the long run.
This practice can lead to increased organic traffic, more social media shares, referrals from other sites, or increased word-of-mouth marketing, which will positively impact your business performance.
This positive impact can also be measured by tracking your site’s engagement metrics, such as time on site, bounce rate, and page views per session.
For instance, improving your product page design will give you three benefits: more conversions, better engagement, and higher profits.
What is the relationship between eCommerce Conversion Rate Optimization and SEO?
Can it help to boost your SEO efforts.
For example, by tracking the factors that are most important to both users and search engines (such as click-through rate, bounce rate, and time on site), you can better understand the user experience and optimize your site accordingly.
When users have a good experience on your site, search engines will reward it with higher rankings.
Moreover, when customers are engaged and interact more with your site, they are more likely to link to it from other sites and share it on social media. This can lead to increased organic traffic and higher rankings.
4) Competitive advantage
Ecommerce is becoming more competitive day by day. It is not enough to simply have a nice website and good products; you need to know how to optimize your site and use the latest tactics.
When your competitors still rely on outdated tactics, you can stay ahead of the curve and get more conversions.
This can help you to stay ahead of the curve and succeed in an increasingly competitive business landscape.
So, if you are serious about increasing your eCommerce conversions, take time to optimize your website and look for ways to make improvements.
Businesses today can increase their eCommerce conversion rates with a number of different optimization strategies, including:
To increase your eCommerce conversion rate, you can first optimize the content on your product pages and descriptions. Businesses usually use too sales-y or vague copy, which may turn potential customers off. Making your product descriptions more detailed and using clear, customer-focused messaging can help capture potential customers’ attention and increase your conversion rate.
What are the essential tips for optimizing product pages and descriptions? Some key tips include:
Now, to really boost your eCommerce conversion rate, you may also want to consider using conversion design principles. Conversion design refers to the process of creating effective web pages and online experiences that are optimized to drive conversions.
Some key conversion design principles include:
AIDA: This stands for attention, interest, desire, and action. When creating your product pages and other web content, it is important to focus on these elements. This can help ensure that you are effectively capturing visitor attention and motivating them to take the next step, whether that is signing up for a newsletter, making a purchase, or completing another key action.
Headline copy: Headline copy is one of the essential elements of your eCommerce website. It should be catchy, clear, and focus on your product’s or service’s key benefits.
CTAs: Nothing can help drive conversions more than a clear and compelling call to action. Using CTAs throughout your web pages and online experiences, including on your product pages, is important.
Social proof: Social proof refers to the idea that customers are more likely to convert when they see positive reviews and other indicators of success. You can use social proof in many different ways, including displaying customer reviews on your product pages and incorporating social sharing buttons.
Trust icons and seals: Another important factor in driving conversions is establishing trust and credibility with your visitors. Trust icons, seals, and other trust-signaling elements can help build a sense of comfort and assurance in your visitors, which can lead to higher conversions.
Check this screenshot from Allbirds:
Do you see? This product page is very well-optimized, using conversion design principles to capture visitors’ attention and motivate them to purchase.
From the headline copy that focuses on the product’s key benefits to the CTA buttons and social proof elements that build trust with visitors, this page is an excellent example of how businesses can increase their sales and profits through smart design.
If you want to learn more about conversion design and how it can help boost your online conversions, read our Ultimate Guide to Conversion Design.
Ecommerce is a tough industry, and visitors are inundated with tons of product options. It is essential to make it easy for them to navigate your website and find the products they are looking for.
According to the research, 45% of users leave eCommerce websites if they can’t find relevant products.
Baymard carried out a study on 50 benchmark e-commerce sites and found users found difficulty navigating a site due to poor interface of the site. Therefore, optimizing your landing page for navigation and user experience is important to keep visitors engaged and encourage them to complete the purchase.
A seamless experience, clear product descriptions, and easy-to-use navigation tools are all important for helping visitors find what they need.
The biggest example of a site that stands out is Amazon. In addition to having a well-optimized product catalog and detailed search functionality, Amazon also makes it easy for visitors to browse by category and filter their results based on various criteria.
If you want to increase your eCommerce conversion rates, you need to make sure that your website is easy for visitors to navigate. This means focusing on things like intuitive navigation, clear product categories and descriptions, customer reviews and ratings, and more.
There are a number of different tools and strategies that you can use to help improve your eCommerce website’s navigation. These include:
Providing robust search functionality is one of the most important ways to make it easy for visitors to find what they are looking for on your website.
A well-designed search function can help eliminate the need for users to sift through product categories or browse by hand, reducing friction and improving conversions.
Another important way to make it easy for visitors to find the products that they are looking for is by providing well-organized product categories and intuitive filtering tools.
In addition to making it easy for visitors to find the products they are looking for, you also need to ensure that your website’s product descriptions and other content provide all the information visitors need. This includes details like product descriptions, customer reviews and ratings, product specs, features, and more.
If you offer any educational content or tutorials on your website, you can use these to help visitors understand how to navigate your site and find what they need. For example, you could create an instructional video that walks users through your navigation and filtering tools or a blog post to provide a step-by-step guide for finding a particular product.
Ecommerce conversion rates can vary greatly depending on the checkout process and payment options offered by a business.
Let’s say you sell products that are high quality and cost a significant amount of money. Not all of your customers can pay in one go, which means they may abandon their shopping cart if they can’t use other flexible checkout options.
One way to improve conversions is by offering flexible checkout options like monthly payment plans, financing, and even installment payment options.
A few shopping tools like Klarna and Afterpay can help you offer these options to your customers, like providing interest-free installment plans or allowing shoppers to pay in installments.
This is an excellent feature for your customers and your business as it will not only help boost conversions by reducing the fear of spending too much at once but also gives you another channel for increasing sales and revenue.
Though you pay a small retainer fee to use these shopping tools, the cost will likely be worth it in terms of increased revenue and customer satisfaction.
In addition to offering flexible checkout options, you can also better your website conversions by upselling and cross-selling products to your customers.
Upselling is a common marketing technique that encourages shoppers to purchase more expensive items or add-ons. For example, you might present shoppers with a list of products that complement the item they are already viewing to encourage them to add those items to their cart and increase the total price.
Following are some strategies that you can use to upsell and cross-sell your products more effectively:
Promote holiday offers: During the holidays, you can use upselling techniques like special discounts or free shipping offers to encourage customers to purchase more products and receive a better deal.
Check this screenshot from SwimOutlet.
Your trending products to sell more:
You can also use upselling techniques to promote your best-selling products. For example, you could create a collection that features your most popular items and promote this collection to shoppers who are browsing your website.
Check the screenshot from Cafe Press:
Highlight new arrivals and trending products: You can use upselling and cross-selling techniques to feature new arrivals, seasonal products, or trending items. This will help keep your website looking fresh and encourage visitors to purchase more products.
One of the most important strategies is to allow guest checkout on your website. According to research, 43% of customers prefer to check out as guests due to the fear of spamming or security issues.
Allowing guest checkout will not only help you maintain a seamless shopping experience for your customers, but it will also reduce your cart abandonment rate.
This is because customers who checkout as guests do not need to create an account or go through the hassle of entering their credit card information each time they want to make a purchase.
This is crucial to a good conversion rate. Studies show that 1 in 2 customers will abandon your website if it takes longer than 6 seconds to load. Website speed is crucial for conversion rate optimization, so it is important to test your website speed regularly.
Study shows a website that loads in a maximum of 2 seconds has the highest conversion rate, while every upper loading speed results in a 4.43% lower conversion rate.
Remember, customers, click away if it takes more than 3 seconds for your website to load. So, check your website loading time regularly and optimize it as needed to boost your sales.
You can check your current loading time using tools like Pingdom. It will help you identify and fix any issues affecting your website speed and causing a drop in conversion rates.
Now, this might seem like an obvious point, but it’s actually one that’s often overlooked. Given the nature of e-commerce products and services, customers are often left with questions about how something works or what it does.
Having a dedicated section for frequently asked questions (FAQs) gives your customers quick answers to their queries and eases down the sales funnel.
The FAQ section makes it easier for you to manage customer support queries. This can help reduce the amount of time your support team spends answering these questions and improve overall customer satisfaction.
Now, we have discussed the strategies you can use in the process. Now, let’s move to our last question: What is the exact conversion optimization process?
The process of increasing your sales and revenue involves a number of different steps, which we will discuss in more detail below.
The first step is to analyze your current store or website.
If you are running ads on social media and visitors are reaching your website, but they are not converting into customers, it might be because your store is not optimized correctly.
Analyze your store’s design, layout, usability, and content to identify any areas that could be improved. Think of it like a customer journey – what do customers need to do in order to purchase from your store?
When analyzing your website, you should also look at the funnel stages, such as landing pages and cart abandonment.
Your website’s “above the fold” content is the most important part of it, as it is the first thing customers see when they visit your site.
Make sure you optimize the content and design of this part of your website to ensure that customers have all the necessary information they need to purchase.
You should also use visuals and videos to help engage customers and improve the overall customer experience.
Following are the elements you should have in your Above the fold content:
Now, this is the main part. Make sure that your call to action is clear and visible. It should be easy for customers to understand what action they should take. You can’t expect customers to understand a confusing call-to-action.
Instead of going for traditional call-to-action buttons like “Buy Now” or “Add to Cart,” opt for something more creative that will engage customers and make them want to take action.
Visuals play a huge role in improving the customer experience.
Make sure you use high-quality images on your website so customers can get an idea of what your products look like. This helps to build trust and sets the tone for a successful purchase. Let’s say you are selling a laptop; make sure to have high-quality images of the laptop on your website. Both the front and the back.
The headline of your website should be catchy and should draw the customer’s attention. It should be short yet descriptive. This can be used as a great opportunity to explain the benefits of your product or service and why customers should buy it.
Social proof is a powerful way to build customer trust and credibility.
The thing is, customers hardly trust online stores as much as they would trust a physical store. So, it’s important to show that customers had purchased from your store before and were happy with their experience.
You can leverage social proof in many ways, such as customer reviews, testimonials, and product ratings. This will show potential customers that your store is legitimate and credible.
Trust icons are an essential part of increasing your conversion rate.
As mentioned earlier, customers don’t trust online stores that much. So, it’s important to show that your store is secure and that customers can trust you with their payments.
You can do this by displaying trust icons such as logos from payment gateways, popular brands you have worked with, renowned people who have purchased from you, security seals, and more.
These trust icons will help build credibility and assure customers that their payments are secure.
Now, all these above-the-fold elements must be optimized to ensure that customers have a positive experience while browsing your website.
Check this home page of ConversionWise:
Now, check we have used all these elements above the fold:
We have used relevant and 100% aligned images. The actionable call-to-action is there. Trust icons and social proof are there.
Do you see these elements in your website above the fold?
If not, you should start optimizing them. This will help improve the overall customer experience and increase conversions.
To wrap up, optimizing the above-the-fold content on your website is key to increasing your conversion rate. You should focus on a clear call-to-action, high-quality images, an attractive headline, trust icons, and social proof.
Don’t forget to check the speed of your website. Customers expect a website to load in less than 3 seconds; the same goes for Google. If your site takes more than 3 seconds to load, then it’s time for you to optimize the speed of your website.
When it comes to ecommerce websites, you should also look at optimizing the speed of product pages, checkout pages, and other key pages.
Now, you might not be aware of some of these terms, so hiring a professional developer who can optimize your website and make sure that it loads quickly is recommended.
Remember, a slow website will lead to a higher bounce rate, which can significantly hurt your conversion rate. So take the time and optimize your website for speed.
Checkout page – hands down – is the most important page if you want to improve your conversion rate.
It’s the final step of a customer’s journey, and if the checkout page isn’t optimized, then customers won’t go through with the purchase.
So, how do you optimize your checkout page?
First, you have to make sure that the design of the checkout page is user-friendly. For instance, all the important details, such as shipping method, payment options, and other elements, must be clearly visible.
Second, you have to make sure that the page is secure and credible. To do this, you can add trust seals, payment gateway logos, security seals, and more.
When it comes to payment gateways, you should offer multiple options. The more payment gateways you offer, the more customers can make a purchase.
Finally, make sure that the process is quick and easy. Customers don’t want to go through multiple steps just to finalize the purchase.
So, making the checkout process as simple and intuitive as possible is important.
Email has been around for decades, but it still holds a lot of potential to increase your conversion rate.
With an email marketing strategy, you can drive sales and increase conversions.
For instance, you can create emails that nudge customers toward a purchase or send promotional emails to encourage them to purchase.
You can also create email campaigns that are specifically designed to convert. For instance, you can create a “Welcome Series” that helps build relationships with your customers and encourages them to purchase.
You can also send emails to customers who abandoned their carts and encourage them to return and complete their purchases.
Finally, you can use email segmentation to send more targeted emails to customers. This will help them feel more connected and engaged with your brand.
Finally, don’t forget to test your website and checkout process.
Thousands of experts would tell you different ways of increasing your conversion rate, but to see which works for you, it’s important to test your website and checkout pages.
For instance, you can use A/B testing to compare different versions of your website and see which one performs better.
This will help you identify the weak points of your website and come up with solutions to improve them.
You can also use A/B testing to test different pricing strategies and see which one resonates more with your customers.
Overall, A/B testing helps you gather valuable insights about your customers and also makes it easier to identify the areas that need improvement.
So, all these steps are a must if your site isn’t performing as well as you want it to. These steps will help you improve your conversion rate and get the best results from your ecommerce store.
Boosting your eCommerce conversion rates is crucial for the success of your business. There are a variety of factors and strategies that you can use to improve your conversion rates, from optimizing your website loading time to using upselling and cross-selling techniques.
Ecommerce conversion optimization is an ongoing process that requires continuous testing, tracking, and analyzing to identify areas for improvement and optimize your website accordingly.
By following a systematic approach to conversion optimization, you can unlock the full potential of your eCommerce business and achieve greater success in the online marketplace.
ConversionWise is a conversion rate optimization (CRO) agency that helps you optimize your website and an eCommerce store for better conversions. We have helped thousands of businesses scale their e-commerce businesses to 6, 7, and 8-figure businesses.
Our experienced conversion rate optimization specialists use the latest strategies and tactics to identify opportunities for growth and increase your conversions. We help you design, test, and deploy effective CRO strategies that drive results.
Contact us today if you are looking for an experienced and reliable partner to help you grow your eCommerce business. We are here to help you unlock the full potential of your online store and get the best results.
What strategies help simplify the checkout process for customers?
Some strategies that help simplify the checkout process for customers include using a single-page checkout, displaying progress indicators, and offering guest checkout. These strategies help customers quickly and easily complete their purchases.
What is the best way to use retargeting campaigns for maximum impact?
Retargeting campaigns are most effective when used to display ads that showcase products and services that customers have previously expressed interest in. This helps create a personalized experience that resonates with customers and encourages them to complete their purchase.
How do I use customer segmentation to improve ROI?
By using customer segmentation, you can tailor your marketing efforts to target specific customer groups. This allows you to customize messaging and promotions that are more likely to be effective for each segment, helping you improve ROI.
How can I use targeted content marketing to boost sales?
Targeted content marketing is an effective way to reach your target audience and engage them with relevant content. Through targeted content, you can create personalized messages and promotions that are more likely to resonate with customers, resulting in more sales.
What is A/B testing, and why should I use it?
A/B testing is comparing two versions of a webpage to see which one performs better. A/B testing helps you identify the best-performing version of web pages and optimize them for maximum conversions. This is an important process for any eCommerce business looking to increase conversions.
How can I better engage my visitors?
Engaging your visitors is key to increasing conversions. To do this, you should focus on providing a smooth customer experience with intuitive navigation and fast loading times. When visitors have a good experience on your website, they’re more likely to convert into customers.
What makes an effective landing page?
An effective landing page should have a compelling headline and a clear call to action. It should also be designed to grab the user’s attention quickly and guide them through the purchase process. Additionally, it should include social proof and use visuals to draw visitors in and encourage conversions.
What SEO techniques should I use to get more organic traffic?
SEO techniques such as keyword research, link building, and content optimization are essential for driving more organic traffic to your website. These techniques help to ensure that your website appears higher in search results, which leads to more visibility and more customers.
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