Do you know how well your ecommerce website is performing? How many of your visitors are actually buying from you? And how does your ecommerce conversion rate compare to others in your industry?
If you’re running an online business, you need to know the answers to these questions. Ecommerce conversion rate is one of the most important metrics to measure your website’s effectiveness and profitability. It tells you how good you are at turning visitors into customers.
In this article, we’ll explain what ecommerce conversion rate is, what is the average ecommerce conversion rate across different product categories, devices, industries, and channels, and how to improve your ecommerce conversion rate with some proven tips and best practices.
Ecommerce conversion rate is the percentage of website visitors who make a purchase on your website. It shows how well your website converts traffic into sales.
To calculate your ecommerce conversion rate, you simply divide the number of transactions by the number of sessions on your website within a given period of time. For example, if you had 10,000 sessions and 200 transactions on your website in a month, your ecommerce conversion rate would be (200 / 10,000) x 100 = 2%.
Your ecommerce conversion rate depends on various factors, such as the type of product you sell, the design and usability of your website, the behavior and preferences of your customers, the quality and source of your traffic, and so on.
According to the latest data from Invesp, as of April 2023, the global average ecommerce conversion rate is 2.58%, while the US average ecommerce conversion rate is 2.57%. These figures are slightly lower than the overall average conversion rate across all industries, which is 3.65%.
However, the average ecommerce conversion rate can vary significantly by product category. According to Oberlo, as of February 2023, products related to arts and crafts have the highest ecommerce conversion rates of 4.04%, followed by health and well-being at 2.89% and kitchen and home appliances at 2.47%. On the other hand, products related to electrical and commercial equipment have the lowest ecommerce conversion rates of 1.16%, followed by food and drink at 1.34% and sports and recreation at 1.47%.
The difference in ecommerce conversion rates by product category reflects the different levels of demand, competition, price, and customer behavior for each product type. For example, arts and crafts products are usually more niche and less expensive than electrical and commercial equipment products, which means they have less competition and more impulse buyers.
Another factor that affects ecommerce conversion rate is the device type that your customers use to access your website. According to Shopify, as of February 2023, desktop devices have the highest ecommerce conversion rates of 3.94%, followed by tablets at 3.74% and mobile devices at 1.53%.
The reason why mobile devices have lower conversion rates than desktop and tablet devices is that mobile users tend to browse more than buy on their phones. They may use their phones to research products or compare prices, but they may not feel comfortable or secure enough to complete a purchase on a small screen.
To improve your mobile conversion rates, you need to optimize your ecommerce website for mobile devices. This means making sure that your website loads fast, has a responsive design, uses clear and simple navigation, has large and easy-to-click buttons, offers multiple payment options, and provides a smooth checkout process.
Your ecommerce conversion rate also depends on the industry that you operate in. Different industries have different levels of customer demand, competition, pricing, and loyalty.
According to Statista, as of Q4 2022, these are the average conversion rates for the top six ecommerce verticals:
These figures are based on data from Adobe , which tracks 29 billion visits from 1.5 billion shoppers to 2,276 digital commerce sites in 61 countries.
The difference in ecommerce conversion rates by industry reflects the different levels of demand, competition, price, and customer behavior for each industry. For example, food and beverage products have high conversion rates because they have high customer demand, low price sensitivity, and high repeat purchases. On the other hand, electronics products have low conversion rates because they have low customer demand, high price sensitivity, and low repeat purchases.
To benchmark your ecommerce conversion rate against your industry average and competitors, you can use tools like Google Analytics or Shopify Analytics to track and compare your performance over time. You can also use tools like SimilarWeb or Alexa to spy on your competitors’ traffic sources, keywords, and conversions.
Finally, your ecommerce conversion rate can vary by the channel that you use to drive traffic to your website. Different channels have different levels of relevance, trust, and engagement for your target audience.
According to Shopify, as of February 2023, email marketing has the highest ecommerce conversion rates of 4.29%, followed by search engines at 3.04% and direct traffic at 2.93%. These channels have high conversion rates because they are either highly targeted, highly trusted, or highly loyal.
On the other hand, social media has the lowest ecommerce conversion rates of 1.81%, followed by display ads at 1.96% and referral traffic at 2.63%. These channels have low conversion rates because they are either highly saturated, highly distrusted, or highly diverse.
To optimize your ecommerce marketing strategy for different channels, you need to understand your customer journey and tailor your content and offers to each stage of the funnel. You also need to test and measure the effectiveness of each channel and allocate your budget and resources accordingly.
Understanding and improving your ecommerce conversion rate is crucial for the success of your online business. By analyzing various factors that influence conversion rates, such as product category, device type, industry, and marketing channels, you can gain valuable insights and take targeted actions to optimize your website's performance.
To improve your ecommerce conversion rate, it's crucial to continuously monitor and analyze your website's performance. Utilize tools like Google Analytics, Shopify Analytics, and competitive analysis tools to benchmark your performance, track customer behavior, and identify areas for improvement. By implementing best practices, optimizing your website's design and usability, and tailoring your marketing strategies to your audience, you can enhance your ecommerce conversion rate and increase your online sales.
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