Ecommerce Conversion Rates: What Are They and How to Improve

In the dynamic world of ecommerce, driving traffic to your website is only half the battle. The real challenge lies in converting that traffic into paying customers. Whether you’re running a small independent business or managing a large-scale corporation, understanding the factors that underpin ecommerce conversion rates (CVR) is key.

In this blog, our ecommerce SEO experts will explore what CVRs are, why they matter and – most importantly – how you can optimise them yourself.

What is an ecommerce conversion rate?

An ecommerce conversion rates is a metric that measures the percentage of website visitors who complete a desired action. The most common action is making a purchase, but it can also include things such as signing up for free trials or creating an account.

A higher conversion rate typically indicates that your site is effective at engaging customers, driving conversions and growing your business.

Calculate your ecommerce conversion rate

Curious about your own conversion rate? Let’s break it down with an example.

Let’s say you have an online store that receives 10,000 visitors monthly. Out of those 10,000 visitors, 300 people make a purchase. To calculate your CVR, divide the number of purchases (300) by the total number of visitors (10,000), and then multiply by 100 to get a percentage.

Conversion Rate = (300 / 10,000) x 100 = 3%

In this case, 3% of your website visitors are converting into paying customers.

How do ecommerce conversion rates differ by sector?

It might be tempting to compare your CVR to a general benchmark, but try to avoid this. CVRs can vary drastically across different industries.

This is due to a range of factors including purchase journey, conversion path, pricing, competition, website performance and product functionality.

For example, someone buying a low cost, disposable item might be expected to convert quickly and often. Whereas, someone purchasing a luxury, one-off purchase might take longer and with more digital touchpoints.

But, between 1-6% is a reasonable range for ecommerce conversion rates.

Below are some examples of global CVR statistics from July 2024, provided by XP2, a company specializing in cross-industry data collection

• Food and Beverage: 5.96%
• Multi-brand retail: 4.78%
• Beauty and Personal Care: 4.54%
• Pet Care and Veterinary Services: 3.42%
• Fashion, Accessories, and Apparel: 3.27%
• Luxury and Jewellery: 1.24%
• Home and Furniture: 0.95%

You can see from the above that the higher the value of the purchase, the lower the conversion rate.

Strategies to improve your ecommerce conversion rate

Although there isn’t a universal formula for boosting your conversion rates, there are proven strategies that can help to improve your chances.

Here are some key steps to enhance your site’s CVR:

1. Content quality and relevance: When users find content that resonates with their interests, they are likely to stay engaged. Tailor your site content to your audience, ensuring that your category page and product page content is well crafted, SEO optimised, informative and engaging.
2. User-experience (UX) design: The goal of UX design is to create a site that is not only functional but also enjoyable and effective. Ask yourself: is your site easy to navigate? Does your site perform well on a range of devices? Does your site have an appealing aesthetic design?
3. Website speed: A delay of even a few seconds in page load time can lead to increased bounce rates. Ensure that you optimise images and large media files, minimize HTTP requests and enable browser caching.
4. Clear call-to-action (CTA): A clear and persuasive CTA removes any uncertainty about the next steps, making it much more likely that your audience will take the desired action.
5. Clear supporting information: Do you have information on delivery times, returns, guarantees. These are especially important on higher value items – people want to be sure they aren’t being ripped off.
6. Finance and purchase options: Are you making it easier to say yes with options like Klarna, to spread payments? Do you offer credit? Do you list the payment types clearly with logos to improve trust signals?
7. Reviews and social proof: Make sure you have reviews for each product, not just your website. Social proof through shared content, testimonials and user generated content show that other users have used – and enjoyed – your product.
8. Personalisation: Tailor product recommendations, email marketing, and on-site experiences to individual users based on their behaviour and preferences. Personalised experiences can make shoppers feel understood and valued, leading to higher conversions.
9. Easy checkout process: A complicated checkout with many form and fields to fill in can deter buyers. Offer a guest checkout option, reduce the number of form fields, and ensure that the payment process is smooth and secure. One-click payment methods can also streamline the purchase experience.

• Live chat and support: Offering immediate support via live chat, chatbots, or easy-to-find customer service contact details can help customers with questions or issues before they abandon their cart.

Summary

Boosting conversions and optimising your site’s CVR starts with mastering the basics.

You can fine-tune your content, tweak the designs and streamline the user journey all you want, but if your site doesn’t connect with your audience then your efforts won’t translate into conversions.

Focus on understanding your audience’s needs and interests; it’s about speaking their language, addressing their concerns and offering solutions. Do that, and you are on the right track.