It is estimated that the e-commerce industry will expand to 6 trillion US dollars in upcoming years; after all, 33% of the world population prefers shopping online. Considering such a vast potential, it is essential to jump into this arena as a source of earning. And, if you are already into e-commerce, it is the right time to look for ways to improve your e-commerce conversion rate.
Whether you have a small or medium-sized enterprise or a large-scale corporation, the only metrics that decide the ultimate success of the business online is the conversion rate. That means all your strategies- be it optimization of the website or engagement with customers, have a single purpose: increase conversion rate.
In this blog, we have discussed in detail the ways of improving your e-commerce business standing by way of working on uplifting the conversion rates.
So, scroll down to know UnityDiv’s best and time-tested strategies;
What is the E-Commerce Conversion Rate?
E-Commerce is all about selling online. In this sense, the e-commerce conversion rate showcases how many people who visit your website have purchased your product. Here are the few metrics that will decide the conversion rate:
- Number of sales
- Social media shares
- Email signups
- How many people are adding products to their wishlists or carts?
- KPI performance indicator.
E-Commerce Conversion Rate Formula
Calculating the e-commerce conversion rate is very simple. You just have to divide your website’s number of conversions by the number of visitors, and after that, multiply it by 100. No need to calculate it manually; you can even do it on Google Analytics.
What is a Good Conversion Rate For E-Commerce?
Good e-commerce conversion rates vary from industry to industry based on the benchmark. However, the average conversion rate stands somewhere around 2.5%-3%. A conversion rate higher than this is considered beyond average. Keeping into account the statistics, you must keep your goal stick to maintain a 3% conversion rate. Once you have achieved this goal, you can upscale your conversion rate strategies for better growth.
What is a Bad Conversion Rate For E-Commerce?
A conversion rate that is below two percent is considered a bad conversion rate, necessitating urgent action to be taken to uplift to an optimum level. Upon poor conversion rate growth, businesses follow conversion rate optimization strategies (CRO) like editing call-to-actions (CTAs), improving user experience, and rigorously carrying out digital marketing.
Average E-Commerce Conversion Rate by Industry
The average e-commerce conversion rate is the critical metric through which businesses judge their comparative performance vis-a-vis other industries. The average conversion rate varies from industry to industry, so the analysis method also varies based on product type, marketing strategies, and customer base. In other words, we can say that there is no one-size-fits-all strategy when it comes to calculating e-commerce conversion rates.
The table below highlights the average E-commerce conversion rate benchmarks by industry:
| Industry | Average Conversion Rate |
| Agriculture | 0.62%-1.41% |
| Health and Well-Being | 1.87% – 4.20% |
| Food and Drink | 1.00% – 2.01% |
| Arts and Crafts | 3.84% – 4.07% |
| Fashion, Clothing, and Accessories | 1.01% – 2.20% |
How to Do E-Commerce Conversion Rate Optimization
You can optimize your E-commerce conversion rate by following these strategies:
- Ensure your product’s image and video should be of high quality. It must be detailed and cover all aspects that customers want to know.
- Free shipping always motivates your customers to buy products from you. You can give them free shipping while retaining your profits by adjusting it somewhere in the product price.
- Discount and special coupon codes also considerably boost online sales.
- Keeping your product price below the price at which it is being sold in physical stores will strongly push your product sales.
- Simplify and quicken your e-commerce store checkout process. Conduct A/B testing to check the page load time.
- Make your website’s navigation easier by structuring it in an organized and systematic manner.
- Your product prize must be strategic and competitive. Adjust it occasionally according to changing market trends and your overall business requirements.
- Add automated customer support service to give your customers live chat and chatbot features.
- Build authoritativeness and credibility of your e-commerce store by adding client reviews and testimonials.
- Make your e-commerce store website secure and safe through SSL certifications. Also, protect your customers’ personal contact and credit card information by giving them visual signals that you use customer-trust payment options.
- Describe your product in detail. Remain authentic in showing original features.
Metrics That Influence E-Commerce Conversion Rate
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- Bounce Rate (people leaving after viewing a page from your website). It shows that your website is not giving value to your visitors, and due to this, potential customers are leaving without conversion.
- Click-Through-Rate (CTR): A good CTR rate means you are using competitive, relevant, and persuasive keywords that are increasing your e-commerce conversion rate.
- Session Duration (This is the metric that shows how long people stay on your website). An increased session duration means more chances of driving conversions.
- Exit Rate: Exit rate is often linked with bounce rate; however, it is a whole different thing. Exit rate highlights which page receives the most customer exits from your website. In other words, it shows which page is the red flag and influences your website negatively by making customers leave without conversion. The exit rate shows where your conversion rate strategy lacks and where it needs improvement.
Final Thoughts
Indeed, conversion rate optimization is imperative to expand your e-commerce business. They effectively measure the performance of your website and digital marketing strategies. It helps you devise an approach based on the customer’s interests, needs, and preferences. Thereby, it would not be an overstatement to say that conversion rate optimization is crucial for developing a customer-centric online e-commerce brand upliftment strategy.
If you are struggling to improve your e-commerce brand conversion rate, it is best to delegate your conversion rate optimization to UnityDiv experts. Feel free to contact us to get the best quote.
