E-Commerce Conversion Rates – Where Should Yours Be?
E-Commerce Conversion Rates – Where Should Yours Be?
Is Your E-Commerce Conversion Rate at an Advisable Level?
Do you remember the last time you went shopping around the market for a product or compared its price with others? People do not seem to engage in such activities anymore in the digital age. The recent pandemic has only accelerated the online shopping trend. Most brands have no option but to go online and launch their e-commerce business today.
Conversion is probably the most important metric that you need to keep an eye on as you focus on expanding your digital presence. With Weavr Sense, you can take your business to the next level by gaining a competitive edge. Weavr will help you understand the conversion rate and how to optimise it by looking at your competitor’s performance.
What is Conversion?
Conversion refers to an action taken by someone that you expected them to take. This can be buying your product, signing up for a live webinar, subscribing to your newsletter, requesting a callback, completing a survey, or any such thing decided by the marketing and sales team as important for the business.
This metric varies from business to business and even for the same business in different situations. But the entire e-Commerce marketing activity is focused on getting more and more people to the online store and converting as many of them as possible.
What is an eCommerce Conversion Rate?
The conversion rate is the percentage of people who take the desired action in a specific period.
If your website gets 100 visitors in a day and only four people download the free e-Book, the conversion rate is 4/100 = 4%. Here conversion is the activity of getting the visitors’ contact details by delivering the e-Book.
The eCommerce conversion rate refers to the conversion rate on your e-Commerce site or store. Generally, the conversion for an e-Commerce website refers to the percentage of orders placed by customers. If around 1000 people visit your online store in a day, but only 30 people place orders, the e-Commerce conversion rate will be 30/1000 = 3%.
Significance of Conversion Rate
Conversion rate is one of the most important metrics in digital marketing. It helps you to assess the effectiveness of your marketing strategies and advertising campaigns.
The success of an e-Commerce store is not the traffic it gets but the number of people who finally place their orders out of that traffic.
If the conversion rates on your website are constantly declining every month, it may point to a slow website, poor design & user interface, redundant content, or shoddy product description; you can immediately make the right changes to your e-commerce marketing strategy.
A high conversion rate can encourage you to enhance both the marketing budget and your digital presence across channels to reach a wider audience. A website with high traffic but poor conversions may point to a faulty design, a poorly written copy, or faulty product pricing.
The metric tells you how many people are ultimately convinced to take the desired action. It helps in increasing your marketing ROI by reducing customer acquisition costs.
Conversion Rate Optimization (CRO)
How do you increase the percentage of people who take the expected action after they land on your website or online store? The process of doing this is known as conversion rate optimisation. It helps you to understand user behaviour across your website from entry to exit.
You can design the best user experience for your online e-Commerce business with CRO. By optimising the conversion rate, you can persuade and convince more people to do what you want them to do.
What is the Average e-Commerce Conversion Rate?
If you have an online Shopify store, do you know how many people see your products and actually buy them? What is the ideal conversion rate for e-Commerce websites? Is your rate good enough?
It is difficult to put a precise number here. The conversion rate depends on many factors, primarily the product type, the market, and the location. What’s good for a luxury item store may be bad for one that sells run-of-the-mill products. It also differs for paid marketing and organic traffic activities.
But according to the latest studies, the average conversion rate for an e-Commerce business is around 3-4%.
It is important to know your conversion rates, irrespective of the product. The numbers will tell you what you need to tweak to get the desired results. If you have a higher conversion rate than the industry average, you can beat the competition and generate higher sales.
You may also end up rethinking the basic business model based on this critical data piece.
Factors Influencing the Conversion Rate
Many factors affect e-Commerce conversion rates. The major ones are discussed below.
Conversion rate is a critical metric for an online business. It is quite easy to track and measure the conversion rate of an e-Commerce website. But it is challenging to take corrective action for a poorly converting platform. Sound knowledge of this concept is necessary for the success of your e-Commerce business. Weavr provides solutions to help you get closer to your customers with its simplified digital dashboards. More specifically, Wear solutions allow you to keep a close watch on a key metric, such as your e-commerce conversion rate. Place a request for a demo and see how we can drive your conversions.