What Is a Good Ecommerce Conversion Rate [+Benchmarks by Industry]

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April 9, 2021
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What Is a Good Ecommerce Conversion Rate
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Conversion rate outlines the percentage of website or page visitors who make the target actions and become your direct customers or users. The most common types of target actions include:

  • making a purchase;
  • using the chat;
  • subscribing to a newsletter;
  • registering on the site;
  • downloading files;
  • interacting with the site in other ways.

Let’s figure out what is a good conversion rate for an ecommerce website and how to measure it.

How is the Ecommerce Conversion Rate Measured?

Most frequently, CR (conversion rate) is measured based on the following points:

  • product order or purchase online
  • callback or professional consultation request
  • email newsletter subscription
  • social activity of users (sharing stuff on social networks, leaving comments in the blog, etc.).

It is not difficult to calculate the conversion rate. You need to divide the number of conversions in a given period by the total number of people who visited your website and multiply that by 100%. For instance, if out of 12,450 visitors to your site, 2,038 opened an email from a mailing list, your ecommerce email conversion rates would be 16.36%.

Most properly configured online advertising services (like Google Ads) and analytics platforms (like Google Analytics) can show the conversion rate on your website right through the interface panel.

One of the features of the conversion rate is that you can refine it or, conversely, expand it. There are several types of conversion rates:

  • Cumulative conversion rate determines how efficiently your website is converting traffic from all sorts of sources;
  • Marketing channel conversion rate shows how great the chances of converting traffic through Google Ads are;
  • Page conversion rate analyzes which page converts traffic better;
  • Ad conversion rate shows whether the ad text needs to be changed and how many people it attracts;
  • Keyword conversion rate determines which keywords are more profitable.

Conversion rate is a good metric for measuring the effectiveness of any aspect of your online store. Increasing the number of clicks is great, but if those clicks are not benefiting your business, something needs to be changed.

To understand what is a good ecommerce conversion rate and how well a business is performing, conversion rates must be close to certain norms. Much depends on the specifics of the trade. For instance, for clothing stores or other non-food items, conversion rates of 30% are pretty good. But for grocery outlets, the figure often reaches 75-80%. In trade with narrow specifics, where the assortment is not too wide, the sales conversion is often at the level of 10-15%.

While measuring conversion, you should consider traffic. If a non-target audience comes to the site or store, this significantly reduces the conversion.

Boosting sales conversions

Conversion rate, like any other metric in Internet marketing, is not an absolute measure. Various factors affect the specific numbers: niche theme, average bill, level of competition, an assortment of goods, etc.

For example, a mass-market cosmetics store will have a higher CR percentage than a resource that offers expensive products. But high conversion does not mean that one project is more successful than another. For one sale of luxury cars, the company will make a profit that cannot be earned on mass sales in 2-3 months.

When managers are faced with the question of increasing conversion, the very first thought is to attract more visitors to the outlet or website. For example, to make sure that the attendance grows a person a day to 2,000, or even more.

Let’s take a look at two hypothetical websites:

  • one has 100 visitors per day and get a 5% conversion;
  • the other has 5,000 visitors per day and gets a 1% conversion.

The first site generates 5 sales per day, and the second – 50. Therefore, all other things being equal, the second site turns out to be more preferable, although its conversion is lower.

It should be understood that depending on the availability of other sales channels, the conversion of the site can directly or indirectly affect all the business indicators of the company. This is why we can say that a good conversation pays off not only the costs of attracting traffic and maintaining the site but also operating costs – managing offices, warehouses, etc.

To increase the conversion rate, you need to gradually, day after day, analyze the work of the company, the needs of its customers and, based on this analysis, improve the service and grow the site. Thus, you will receive more feedback from existing customers, and new ones simply will not want to leave you. Only constant work on a project helps to increase profits. And in this work, the marketing strategy chosen by the company plays a significant role. For more information, we suggest reading our guide on increasing customer loyalty.

Conversion Benchmarks by Industry

Ecommerce conversion rate by industry on ecommerce sites can vary greatly depending on the nature of the industry, the urgency of delivery, and the size of the transactions.

Hotel reservations in the travel industry are a type of conversion that differs significantly from leads in the apparel ecommerce conversion rate. That’s why you should evaluate your achievements only within your field of activity.

Conversion rate estimates for 16 business areas for 2020 can be viewed here:

Source

For example, a landing page with a conversion rate approaching 10% can be considered successful; for a lead page, this number can be close to 20%. On average, “in the industry”, these indicators are as follows:

  • For a retail site, the conversion rate ranges from 1% to 2% of visitors;
  • For a site with a lead generation form, this value is slightly higher – from 5% to 6%.

Here are some more expert data that can be used when launching startups in various fields:

  • finance, banking, and investing – 10%;
  • media, ads – 10%;
  • healthcare and education – 8%;
  • software development and IT – 7%;
  • advanced and innovative technologies – 5%;
  • goods manufacturing – 5%;
  • tourism – 4-5%;
  • retail, wholesale, and other types of ecommerce – 3%;
  • non-profit organizations – 2%.

Conversion Rates by Device

It’s also worth considering the mobile ecommerce conversion rate and PC metrics. Thus, judging by the graph, the conversion for large-format gadgets is 2 times higher than for smartphones.

In particular, low conversion rates for the desktop can mean problems with the usability of the desktop version of the site while low conversion rates for smart gadgets point out mobile issues.

Thus, according to the data from Global Digital Benchmarks, conversion rates are gradually growing on mobile devices and decreasing on PCs.

Source

Conversion Rates by Sales Channel

In a broad sense, traffic source conversion is about targeted actions performed by visitors who came from a specific sales channel, be it Facebook, Google search results, or something else. The target action can be ordering any product or service on the site, registering on the site, downloading certain content (books, videos, archives), subscribing to an email newsletter, staying on the site for more than 5 minutes, viewing more than 10 pages per visit, etc.

As you can see from the graph, conversion rates are roughly the same here, regardless of industry.

See a few tips on upselling and cross-selling in another article of our blog.
Guides & Advice
7 E-commerce Tips to Boost Upselling and Cross-selling

Conversion Rates by Country

When compiling your KPIs, you should consider the average ecommerce conversion rate of the major trading countries. For instance, the conversion rate in the UK will differ from that in the US. There are many reasons for such a variety of indicators, here are some of them:

  • mature markets. Established market niches that include established online brands and generate higher conversion rates compared to younger stores;
  • purchasing power parity. In addition to the country’s inflation rate, economic growth, consumer behavior, and demographic changes also have a significant impact on conversion rates;
  • logistics and distribution. Not all countries have a developed logistics and distribution network, so many ecommerce companies are unable to meet the needs for the delivery of goods, which in turn lowers the conversion rate.

Knowing the conversion rate by country is important if you plan to expand your network and serve more customers. This information will help you make the necessary changes to your KPIs and prepare robust business strategies for generating windfall profits.

Conversion Rates by Payment Method

To improve your cart conversion rate, you should give shoppers less reason to abandon their cart. It can be difficult for your customers to choose a payment method as there are over 200 types of payment options. Payment options can take many forms, and you need to figure out which ones are best for your customers. Here are some of the most popular payment methods:

  • credit/debit card;
  • prepaid cards;
  • payment by installments;
  • mobile wallet;
  • bank transactions;
  • e-wallet;
  • cash. 

Your customers prefer one or another payment method depending on the country where they are located. Choosing the right payment methods will dramatically increase your conversion rate.

For example, credit cards and debit cards are still the most preferred payment method in the United States. But digital wallets are gaining traction, as are installment payment plans. If your customers are primarily from the United States, then it is in your best interest to offer the preferred payment methods.

Here’s what you can do to optimize your payment conversion rate:

  • optimize UX; 
  • create a mobile site version; 
  • allow payments without registration;
  • guarantee security via HTTP and HTTPS protocols.

How to Boost Conversion Rates?

Last but not least, here are some pro tips on boosting conversion indicators in your store:

  • at the very beginning, inform the visitor of a unique selling proposition;
  • place a form or a “Buy” button on the first screen of the page;
  • make a professional, expressive, and contrasting design;
  • improve navigation and usability;
  • use personalization;
  • test;
  • improve content (text, images, 3D models of goods, videos);
  • consider using dynamic content;
  • build trust (post certificates, testimonials, customer logos, production photos).

Bottom Line

In this article, we’ve analyzed the most important ecommerce conversion rate metrics, determined their specifics for different niches, channel sources, devices, and more. Achieving good conversion rates can be pretty challenging. You just need to figure out how exactly you can efficiently increase your conversion rate in your specific case. 

We at Elogic suggest constant experimenting and analyzing your website on the path to increasing the ecommerce conversion rate benchmarks. However, don’t neglect other sales channels you have. To continue the topic, we advise reading our guide on ecommerce channels and how to use them to the benefit of your business.
Guides & Advice
Ecommerce Channels: The Basics All E-Retailers Must Know

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The average conversion rate for eCommerce businesses is around 2-3%. However, there are a number of factors that influence this metric, including the industry you’re in, the product you sell, and where your traffic is coming from.

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