Average eCommerce Conversion Rates

If you are like most people starting on the eCommerce business, you will be asking yourself “What’s a good conversion rate?”, “How can I know if my conversion rate is high or low?”, “How can I know my competitor’s conversion rates?”. So let’s start with the first question.

What is a considered a Good conversion rate?

Basically you have a product and you are marketing your product. Running ads online maybe, or using shopping comparison sites like Nextag, or even Google Shopping. In Marketing, a good conversion rate is anywhere between 1.5% to 4.5%, where obviously 1.5% is on the bottom margin meaning there is a lot of room for improvement and 4.5% on the top meaning that you are doing really well with what ever approach you are utilizing. So with that in mind; if 2 out of every 100 visitors convert into a transaction or your desired behavior, you are doing well. If 4 out of 100 turn into a conversion then you are doing really well.

It is all about the numbers:

If you have established that your conversion rate is at 3.5% and you want to increase your sales, then you need to attract more visitors. You raise your number of visitors, you raise your sales, you keep your conversion rate still at 3.5% but more traffic means more sales. Now, don’t fool yourself trying to gain more traffic through deceptive offers, you need to keep your current approach, just go out to get more exposure.

How can I know if my conversion rate is High or Low?

First of all you need to be able to track it. Track, track, track! You can sign up for a free Google Analytics account and start tracking in matter of minutes, literally! Basically you sign up for the free service and you get an html code that needs to be copied and pasted into every one of your web pages. That way when someone goes from page A to page B to page C, Analytics can track it down to the very last page which becomes a conversion. Installing the Google Analytics tracking code into your shopping cart can be easy; just identify that piece of code that appears on every page of your store (Tip: this can be your Footer). Ideally shoot to install the Analytics code right before the </head> tag, that is the closing Head tag. If you are not familiar with HTML code find a developer who can help you with this. Once your Analytics code is installed you will start gathering a lot of information about your site, Conversions is only one aspect of Analytics tracking but it is the one we are focusing on today.

Let Analytics do it’s work for a couple of months, the longer your wait, the more meaningful your data will be. I know you will be anxious to start reviewing the information you are gathering, but make sure to wait before you make any decisions to change your approach or you may be acting using very limited information.

How can I know my competitor’s conversion rates?

Unfortunately, unless you get a tip from an insider you are pretty much out of luck on this one. Large and small companies keep this a secret and they should; or would you like to share your conversion rates with your competitors? I thought so. Be very careful if someone offers you this kind of information about your competitor, you could be risking getting into troubles for trading with sensitive or confidential data.

I don’t know how to install the Analytics tracking code. What do I do?

Check with your current shopping cart platform. Most shopping carts have a designated field in the control panel where you can just type your Google Analytics account number. Then the shopping cart will generate all the necessary code and deploy it to the appropriate locations across your website.

How do I increase my Conversion Rates?

Follow these simple steps:

  1. Install the tracking software or script
  2. Optimize your shopping cart or online store
  3. Wait some time to gather data
  4. Analyze the data and estimate conversion rates
  5. Act on that new information

Repeat steps 2 through 5 over and over again until you reach your goal! I also recommend that you read this other post: “Content Freshness to Boost Conversion Rates

Remember 1% to 2% is OK, 2.5% to 3.5% is GOOD,
4% to 5.5% is REALLY GOOD.

Tags: , , , ,

1 Response to "Average eCommerce Conversion Rates"

  • Gabriella Opichka says: