What is a good ecommerce conversion rate?There isn't one answer to that question because it depends on what you want from your business, but some experts say anything above 3% is profitable in most industries.
As an ecommerce owner, converting potential customers into actual buyers is key to success. But how do you know if your conversion rates are working? The best way to find out is through testing different options and tracking the results. Read on to learn how your conversion rate can affect your bottom line and how to improve it.
Why Conversion Rates Matter?Your conversion rate is the percentage of visitors who buy something or subscribe to your email list. The higher this number, the more likely it is that people are finding your site valuable and ending up in a buying cycle. That means you're converting browsers into buyers, which boosts revenue. If too few people are following through with a purchase, you might want to look at your site design and find out why potential buyers aren't converting.
There are a few different factors that can influence conversion rates:
Site design - Your landing page is the first thing people see when they click on a link or visit your homepage. You've got about 3 seconds (or less) to convince a visitor that your site is worth their time. If the design isn't compelling, they'll leave and you won't see a conversion.
Product pricing - If your prices are too high or offer poor value, people will move on instead of converting into buyers. Make sure it's obvious how much your products cost and why they're worth it.
Social proof - Important emails should include a picture of the person you're emailing, their name, and how long they've been subscribed to your site. Collecting this information helps add credibility to your emails and makes them more effective.
Clarity - Make sure the CTA buttons on your site are clear, concise, and stand out from everything else. You should be able to describe a product in a short sentence or two.
Content - The more helpful your content is, the better chance visitors will turn into subscribers. Your website should have informative blog posts that offer tips and how-tos. Add a press page to tell people you've been featured in other places, and include links to these mentions from your homepage.
Number of pages - If there are too many steps it takes visitors to complete a task—like buying a product or filling out an opt-in form—they'll leave before converting. Keep it as simple as possible.
Use of pop-ups - Test whether or not pop-up forms are converting better than opt-in boxes on your site. If they aren't, find a less intrusive way to capture visitor information.
How Conversion Rate Affects Your Business?The higher the conversion rate, the more likely you are to see positive results. That means more sales, increased revenue, and a healthy bottom line. You can also expect a steady stream of customers when your conversion rate is good because people trust that they'll get what they want when they come to your site.
If conversion rates aren't where you want them to be, there are a few ways to improve them.
- Add testimonials and pictures of happy customers with your products—this builds social proof and adds credibility to your site.
- Put the price of your product in big, bold letters with a clear description of why it's worth it.
- Make it obvious what you want customers to do when they visit your site.
- Write blog posts that are informative and helpful, so people will turn into subscribers.
- Ask for social shares when someone is reading your content—this helps spread the word about what you have to offer.
- Simplify your site design to make it easier for visitors to convert.
In the end, a high conversion rate is all about giving people what they want—whether that's a discount on a product or advice from an industry expert. If you can provide value and make steps to improve your process, conversions will skyrocket.
How to calculate your ecommerce conversion rate?It's easy to know your conversion rate, and it can be broken down into a few simple steps.
Step 1: Look at the total number of unique visitors coming to your site each day, week, or month.
Step 2: Then look at how many people are taking action on your site by adding items into their cart or buying something.
Step 3: Divide the number of people who took action by the total number of unique visitors, and you'll get your conversion rate.
If you have 1,000 visitors to your site each day and 100 people place items in their cart, then your ecommerce conversion rate is 10%.
Examples of high-conversion ecommerce sites
1. Birchbox - Users are encouraged to subscribe for monthly beauty samples, and the sign-up page is simple and quick to fill out.
2. Everlane - Their homepage clearly states their value proposition of being "Radically Transparent," has a quick buying process without too many steps , and tells you what's in your order before checking out.
3. Dstld Co - The landing page is simple and direct, with a strong value proposition that explains why they're worth subscribing to and notifies customers when items are restocked.
4. Fabletics - Customers can create an account easily and quickly, and the products are organized by season so it's easy to see what's popular.
5. Dyson - The landing page is simple and has a clear CTA that shows customers how to save $80, along with social proof in the form of customer testimonials.
6. Warby Parker - Customers can easily find out more about the brand and how it operates to build trust—instead of just looking at their products.
The conversion rate is the metric that determines how many people convert on your site. It’s an essential factor to consider when determining what a good ecommerce conversion rate means for you and your business because it will have a direct impact on whether or not you want to take steps to improve this number, such as by creating better products, making changes in marketing strategy, etc.
The higher your ecommerce conversion rate, the better it is for your business because you'll make more money and have a steady stream of buyers. Having good site flow also increases conversions to help customers find what they want, which will keep them coming back to buy again in the future.