Did you know that sporting goods have one of the lowest average conversion rates? Conversion rates can differ per industry, so if yours is lower than the average website conversion rate, it might be the industry you are in.
However, some conversion rates can be as high as 11%!
Conversion rates are not about attracting a horde of visitors to your site; the real success lies in how many of those visitors actually make a purchase, sign up for your newsletter, or perform any action that you deem valuable. And that is what conversion rate is all about.
But here's the question; what makes a good conversion rate for e-commerce? Below, we will discuss everything there is to know for conversion rate optimization for your e-commerce business.
Conversion rates 101: Understanding the basics
Let's kick things off by getting down to the nitty-gritty of how the conversion rate is calculated. It's actually pretty simple.
You just need to know the number of conversions, whether that's sales, sign-ups, or whatever other action you're tracking. And the total number of visitors to your site.
Divide the number of conversions by the total visitors, then multiply by 100, and you've got your conversion rate percentage!
For instance, if 50 people made a purchase on your site, and you had 1000 visitors, your conversion rate would be 5%.
Now, it's important to understand that conversions are not just about sales. We're talking about any meaningful action that a user takes on your site. That could be:
- Signing up for your awesome newsletter
- Downloading a fancy e-book
- Filling out a contact form
These different types of conversions are valuable as they can lead to building relationships with potential customers, gathering data for your marketing efforts, and, of course, making those sweet online sales.
While we're at it, let's chat about the conversion funnel. Imagine a funnel (yes, like the one you used in science class) and picture your customer's journey from the moment they land on your site to the ultimate goal; the conversion.
This journey might have several stages, like:
- Awareness
- Interest
- Desire
- Action
You want to make sure this funnel is a smooth journey. No bumps or blockages that might make the customer leave your e-commerce business.
It's about guiding them through the process, from the "Hey, this looks cool stage" to the "Shut up and take my money" moment. Understanding this funnel helps you pinpoint where you might be losing potential customers and how to make the journey as seamless as possible.
Average website conversion rate: Key factors
A good conversion rate for e-commerce relies on several key factors. These factors can make or break the experience of your customers.
Let's take a look at what those might be.
Website design & user experience
Picture this: you walk into a store and it's a mess. Stuff everywhere, no signs, and you can't find what you need. You'd probably just walk out, right?
The same goes for your website. A clean, intuitive design is what every customer looks for. It invites people in and find what they seek effortlessly. That is why nailing the user experience is key.
This means your site should load fast, navigation should be smooth, and info should be easy to find.
UX should not be the only thing you focus on. A visually appealing site can charm your visitors. It's a combo of functionality and aesthetics that makes users stick around, and ultimately hit that "Buy button" or sign up.
Investing in stellar website design and user experience will quickly lead to conversions.
Product pricing & offers
Product pricing and special offers pull shoppers through your digital doors.
Imagine you're a customer with a wallet ready for action. You're hunting for the best deal. If your prices are sky-high with no apparent reason or value, or if your competitor is throwing in a new deal, guess whose cart will be left empty?
To win in the pricing game, you have to play it smart. Be competitive, but also showcase the value. Toss in occasional:
- Discounts
- Bundle deals
- A limited-time freebie
That creates a sense of urgency and value that's harder for customers to resist. And when they feel like they've grabbed an epic deal, you make a sale and have a happy customer who's likely to come back for more.
Site speed & performance
A slow-loading site is a repellent for conversions. People want their info and they want it yesterday.
Performance is not just about speed, though. Were talking glitch-free, smooth scrolling, and zero errors.
Nothing sends a potential customer running faster than a site that crashes or throws up weird error messages. Pump up the speed on your site, and make sure the performance is as a well-oiled machine.
Quality of product images & descriptions
Let's shift gears and talk visuals and vocabulary. In other words, the quality of your product images and descriptions. You see, online shopping is a bit of a leap of faith.
Since customers can't physically touch or try your products, they rely heavily on the images and text you provide. Blurry images or vague descriptions? Shoppers might as well be blindfolded.
Invest in crisp, clear, and professional-looking photos from multiple angles, and don't shy away from using videos or 360-degree views if possible.
As for descriptions, it's time to channel your inner Hemingway. Informative, persuasive, and easy-to-read text is the way to go. Paint a picture of how the product will solve a problem, improve their life, or just make them happier.
Lay out the features but don't forget the benefits. And be honest; don't promise what you can't deliver.
With high-quality images and compelling descriptions, your products aren't just sitting on a digital shelf, they're virtually jumping into customers' carts!
Payment options & checkout process
You've wooed customers with your stellar site, they've found their dream product, and now it's time to seal the deal. But hold up! If your checkout process is complicated or your payment options are limited, you might just see those eager shoppers vanish.
Streamline that checkout! A simple, step-by-step process with clear instructions is the way to go. Don't bog customers down with unnecessary forms; keep it to the essentials.
Now, on to payment options. In a world where there are more ways to pay than flavors at an ice cream parlor, flexibility is key.
- Credit cards
- PayPal
- Apple Pay
- Cryptocurrencies
Remember, different strokes for different folks. Cater to a wide range of preferences and watch as your conversion rate climbs fast.
Customer reviews & testimonials
Customer reviews are the digital version of word-of-mouth, and they pack a punch! They build trust and credibility.
Encourage your customers to leave reviews, maybe even incentivize them. Showcase glowing testimonials on your product pages.
Don't shy away from the not-so-great reviews. Respond graciously, and show you care. It's all part of building a brand that customers know, love, and recommend to others.
Mobile responsiveness
In an age where smartphones are practically glued to our hands, having a site that works with mobile devices is crucial. It's all about giving your on-the-go customers a smooth, enjoyable experience. That means:
- Big, tappable buttons
- Easy navigation
- Speedy load times
Google loves mobile-friendly sites too, which means you could score higher in the search rankings.
Typical conversion rate for e-commerce: Industry benchmarks
The average online conversion rate in e-commerce typically hovers around 2-3%. However, it can vary depending on a few factors like:
- Industry
- Location
- The time of the year
If you're hitting the 2-3% or going beyond, you are on the right track. If not, don't worry! There's always room for improvement.
Take a look at the items we discussed above or speak to a consultant to improve your e-commerce website conversion rate.
Conversion rates by industry sector
Let's break it down by sector. Health e-commerce businesses might have a different conversion rate compared to tech gurus.
For instance, health and well-being often see higher conversion rates, sometimes around 4%, while electronics might be closer to 2%.
Every industry has its quirks, so it's important to gauge your performance against similar businesses.
Conversion rates by traffic source
Where are your visitors coming from? Organic search through SEO might bring in a steady stream, but did you know that PPC often boasts higher conversion rates?
However, recent reports are showing that PPC might be on the decline. So, make sure you keep up with the trends as well!
And don't forget the power of social media. Sometimes a well-placed Instagram ad can work wonders. It's important to know which channels are bringing in the big bucks so you can focus your efforts wisely.
Conversion rates by device
Are your customers shopping on a desktop, or are they using their phones while binge-watching their favorite show?
Typically, desktop users have been known to convert at higher rates, but mobile is catching up fast. Tablets hover somewhere in between.
Tailoring your site and shopping experience to suit different devices can be the key to unlocking those conversion rate gains.
Are you looking for a good conversion rate for e-commerce?
From understanding how to calculate conversion rate and the many factors that can affect it, to comparing industry benchmarks, we've seen it all.
A good conversion rate for e-commerce isnt just a number. Its a signal that your e-commerce site is effectively engaging customers, offering value, and making their shopping experience a delightful journey.
Whether you're hitting the average conversion rate or striving for more, remember to keep learning, keep testing, and keep optimizing.
Are you looking for conversion rate optimization? Contact us today!