The success of an e-commerce business is measured by various indicators, and the conversion rate is one of the most important.
Maintaining a high conversion rate is fundamental for good e-commerce results, but what would be the best average to maintain results and how can they be increased? In this blog, we will explore this question and present practical tips to help you improve your e-commerce conversion rate. Follow along!
Why is the conversion rate so important?
The conversion rate indicates the effectiveness of a website in turning visitors into paying customers. In other words, it represents the percentage of website visitors who complete a desired action, such as making a purchase, filling out a form, discovering a new collection, etc.
A high conversion rate is important because it means that your online store is attracting relevant visitors and providing a satisfactory enough experience for them to buy from your business.
On the other hand, a low conversion rate can be a sign that the site is not attracting the right audience, is not providing a good experience, or is not offering enough value to encourage the desired action. This results in lost sales and revenue.
Therefore, it is important to monitor the conversion rate regularly and conduct tests and optimizations to continuously improve it.
How to calculate the conversion rate of an e-commerce business
Now that we understand why the conversion rate is so important, let's learn how to calculate it.
To get a more accurate result, you first need to follow a few steps:
- Define the period you want to analyze. For example, a week, a month, a quarter, or a year.
- Obtain the number of unique visitors during that period. This can be done through Google Analytics or other traffic analysis tools.
- Obtain the number of sales during the same period.
- Calculate the conversion rate by dividing the number of sales by the number of unique visitors and multiplying the result by 100 to get the percentage.
The formula for calculating the conversion rate is:
Conversion Rate = (Number of Sales / Number of Unique Visitors) x 100
For example, if you had 10,000 unique visitors to your e-commerce business during one month and made 200 sales, the conversion rate would be:
Conversion Rate = (200 / 10,000) x 100 = 2%
This means that 2% of the visitors who accessed your site made a purchase.
What is the standard average conversion rate for e-commerce businesses?
There is no standard average conversion rate for e-commerce businesses, as this can vary according to the market segment, the type of product or service offered, the target audience, the quality of traffic, among other factors.
However, according to industry benchmarking data, the average conversion rate for an e-commerce business can range from 1% to 3%, with the global average being around 2.35%. This means that, on average, for every 100 unique visitors, between 1 and 3 make a purchase.
However, it is important to note that this is just a reference and companies should establish their own conversion goals based on their business strategies and performance history.
Furthermore, companies should regularly monitor their conversion rate and conduct tests and optimizations to improve this indicator.
4 Actions to increase your rates
There are several actions an e-commerce business can take to increase its conversion rates. Below are four actions that can be useful:
Improve the user experience
The user experience is a critical factor for increasing conversion in e-commerce. Make sure your site is easy to use, fast, and responsive on all devices. Invest in design, navigation, and usability, facilitate product search, and ensure that the checkout process is easy and intuitive.
Offer promotions and discounts
Offering promotions and discounts can be a good way to encourage visitors to make a purchase. Promotions can include discounts on specific products, free shipping, discount coupons, free gifts, among other options.
Use marketing techniques
Use marketing techniques to increase the visibility of your e-commerce business, attract more visitors, and encourage conversion. You can invest in social media ads, email marketing campaigns, search engine optimization (SEO), remarketing, and other digital marketing strategies.
Increase consumer trust
One of the most important factors for conversion is consumer trust. To increase consumer trust, you can add customer reviews and testimonials, security and privacy seals, clear information about exchange and return policies, clear contact information, among other options.
Remember that the actions above are just a few possibilities. Each business should identify its opportunities and conduct tests to determine which strategy is most effective for increasing its e-commerce conversion rate.
Optimize your Conversion Strategy with Deza
You don't have to rack your brain alone figuring out how to improve your results. Here at Deza, we offer a conversion optimization service.
It involves data analysis and testing to understand how customers are interacting with the site and identify tactical opportunities to improve the conversion rate.
Shall we chat with our consultant to understand more about your business and the best strategy to follow? Click here and have a good conversation!
