The Ultimate Guide to Increasing Your Ecommerce Conversion Rate

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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 be able to get more revenue and profit from the same traffic that comes to your site.

We will talk about the following topics in this guide:

  • What is an eCommerce conversion rate?
  • Why is my eCommerce conversion rate important?
  • How do I calculate my eCommerce conversion rate?
  • What are the benefits of increasing my eCommerce conversion rate?
  • How do I increase my eCommerce conversion rate?
  • What is the conversion optimization process?

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!

What is an eCommerce Conversion Rate?

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:

• Purchasing an item, subscription, or service on your site

• Signing up for a newsletter or email list

• Downloading a free trial of your product or service

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 eCommerce conversion rate of 2.5%, high-traffic eCommerce sites in other industries may have an average conversion rate of just 1%.

Why is my eCommerce Conversion Rate Important?

There are a number of reasons why it is important to track and optimize your eCommerce conversion rate, including:

Understand the behavior of your customers:

By analyzing your eCommerce conversion rate over time, you will be able to gain valuable insights into the behavior of your customers and visitors. What makes your customers or visitors convert? What are the most common reasons why they do not convert? By understanding the motivations and barriers that your visitors face, you can take steps to optimize your site and improve your conversion rate.

Low customer acquisition costs:

In many cases, the cost of acquiring new customers is significantly higher than optimizing your eCommerce conversion rate. For example, optimizing your site can increase your eCommerce conversion rate from 2% to 3%. In that case, you can potentially decrease the number of visitors you need to acquire to reach a particular revenue goal.

Maximize your ROI:

Increasing your eCommerce conversion rate is one of the best ways to optimize the return on investment you receive from your digital 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.

Better customer analytics and insights:

Tracking your eCommerce conversion rate can also help you to gain a deeper understanding of your customers and their needs, which can inform future marketing decisions and product development efforts.

And the best thing? When you focus more on the conversion rate for e-commerce, you don’t need to spend more money on traffic because it’s all about converting already existing traffic instead of acquiring more. Since a better conversion rate brings more revenue, you can invest that money into your business for further growth.

How do I calculate My eCommerce Conversion Rate?

Nothing is more important than clearly understanding your current eCommerce conversion rate. 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, your eCommerce conversion rate can provide clear insights into where you need to focus your efforts.

One simple way to calculate your eCommerce conversion rate is by dividing 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 get more accurate data, you can use the Ecommerce conversion rate calculator by ConversionWise to track your conversion rates and conversions over time 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.

What are the Benefits of Ecommerce Conversion Rate Optimization?

Here comes the list of benefits you get from focusing on eCommerce conversion rate optimization. Talking about benefits is important because it helps you to visualize the real value of optimizing your site.

There could be several benefits that you could reap from eCommerce conversion rate optimization, including:

1) Improved revenue and profit – By tracking your eCommerce conversion rate, you can identify opportunities to increase sales and improve the profitability of your business. This may include optimizing product pages, improving site usability, or experimenting with different pricing or promotional strategies.

2) Increased traffic and customer engagement

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. This 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 the design of your product pages to make them more engaging can increase time on site, leading to increased engagement and a better user experience.

3) Boost SEO Efforts:

What is the relationship between eCommerce Conversion Rate Optimization and SEO? One important benefit of focusing on eCommerce conversion rate optimization is that it can 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. This can lead to increased rankings in search engines, which will drive more organic traffic to your site over time.

4) Competitive advantage – By optimizing your eCommerce conversion rate, you may be able to gain a competitive advantage over other businesses in your industry. This can help you to stay ahead of the curve and succeed in an increasingly competitive business landscape. Also, you can make your business more efficient and profitable by focusing on eCommerce conversion rate optimization.

So, as you can see, there are a lot of great benefits to focusing more on your eCommerce conversion rate optimization.

How do I Increase My eCommerce Conversion Rate?

Businesses today can increase their eCommerce conversion rates with a number of different optimization strategies, including:

1) Optimizing product pages and descriptions

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:

  • Use more than one image to showcase your products, including a product image, zoom feature, and 360-degree view.
  • Use relevant keywords in your product descriptions so that they are clear and searchable.
  • Use headline copy that makes your products stand out and highlights their key features.
  • Include clear, compelling call-to-actions on all product pages to encourage visitors to make a purchase.
  • Use white space strategically to help your product descriptions appear more readable and encourage visitors to focus on the key information.

2) Use Conversion Design principles

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 most 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 to establish 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 conversion rates.

Check this screenshot from Allbirds:

Do you see? This product page is very well-optimized, using conversion design principles to capture visitor attention and motivate them to make a 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 eCommerce conversion rates 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.

3) Make Your Landing Page Easy to Navigate

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:

Search functionality:

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.

Categorization and filtering:

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.

Product descriptions:

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 of the information visitors need. This includes details like product descriptions, customer reviews and ratings, product specs, features, and more.

Tutorials and guides:

If you offer any sort of 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.

4) Flexible Checkout Options

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 opt to 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 pay 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.

5) Upsell and Cross-Sell Products

In addition to offering flexible checkout options, you can also improve your eCommerce conversion rates by upselling and cross-selling products to your customers.

Upselling is a common marketing technique in which you encourage 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.

Check here:

6) Allow guest checkout:

One of the most important eCommerce conversion rate optimization 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.

7) Checkout your website loading time:

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 eCommerce conversion rates.

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.

8) Add FAQs to your e-commerce store

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 can help improve your e-commerce conversion rates.

Additionally, having an 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 talked about the strategies that you can use to improve your eCommerce conversion rates. Now, let’s move to our last question: What is the conversion optimization process?

What is the Conversion Optimization Process?

The conversion optimization process involves using a variety of techniques and tools to improve the performance of your eCommerce website in terms of user engagement, customer acquisition, and conversion rates.

This involves tracking key metrics such as website traffic, engagement rate, bounce rate, and conversion rate and optimizing various elements such as landing pages, checkout processes, and product descriptions. Other key conversion optimization strategies include optimizing website load time, using upselling and cross-selling tactics, and allowing guest checkout.

Each element follows a certain process for optimization, which can include A/B testing, user testing, and data analysis. Ultimately, conversion optimization aims to improve customer experience and help your eCommerce business grow and thrive.

Conclusion:

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.

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