What is the average ecommerce conversion rate?

Understanding eCommerce conversion rate

Ecommerce conversion rate is the percentage of visitors to your website who complete a desired action, such as making a purchase in your online store. In other words, it is the number of conversions divided by the number of visitors to your website, multiplied by 100. Conversion rate is often abbreviated as CVR.

Conversion rate calculation in eCommerce

Knowing your conversion rate is important because it tells you how effective your website is at convincing visitors to make a purchase. 

Also, CVR is always a percentage.

Example

Take a period of time, for example one month or one year. Find the amount of visitors to your eCommerce site at that time. For example 10 000 visitors in one month. 200 of those made a purchase (conversion). You would have a conversion rate of 2%.

What is the average eCommerce conversion rate?

We have just released a benchmark report on eCommerce businesses where we have collected data from over 150 eCommerce stores in the U.S. from small to medium sized businesses.

The data tells us that the average eCommerce conversion rate is 2.9%. The data we have also shows that  average CVR is mostly in the range of 1.8% to 3.8%. If you're in that range, you should be pleased.

Average conversion rate in the eCommerce world can also vary greatly depending on what product are being sold. Food and beverage have a higher CVR than luxury good for example.

Average conversion rate by device

Also, conversion rate can vary across devices. We also see that desktop has a much higher CVR than mobile. This can be because consumers like to browse on their phone and come back to do the purchase on their desktop.

Conversion rate by device

The 2023 eCommerce benchmark report

Why benchmarking your ecommerce conversion rate is important

Benchmarking your ecommerce conversion rate is important because it helps you understand how your business is performing compared to others in your industry. By tracking your conversion rate over time and comparing it to industry averages, you can identify areas where you need to improve and optimize your website to increase conversions.

For example, if your conversion rate is consistently lower than the average for your industry, you may need to improve your website design, product descriptions, or checkout process to make it easier for visitors to make a purchase. Conversely, if your conversion rate is higher than the average for your industry, you may want to identify what is working well and continue to optimize those areas.

Factors that affect ecommerce conversion rate

There are several factors that can affect your ecommerce conversion rate, including, but not limited to:

1. Website design and user experience

Your website design and user experience play a significant role in your conversion rate. A website that is visually appealing, easy to navigate, and optimized for mobile devices can help increase conversions.

2. Product descriptions and images

High-quality product descriptions and images can help increase conversions by providing visitors with the information they need to make a purchase decision.

3. Pricing and promotions

Pricing and promotions can also affect your conversion rate. Offering competitive prices and promotions can help incentivize visitors to make a purchase.

4. Checkout process

A complicated or lengthy checkout process can lead to abandoned carts and lower conversion rates. Simplifying your checkout process and offering multiple payment options can help increase conversions.

Tips for boosting your conversion rate in your eCommerce store

This is called conversion rate optimization, abbreviated CRO, and it's basically the process of improving your CVR by doing A/B tests, changing the checkout process and other things. I've written up a guide on best practices in conversion rate optimization

There are four steps to doing CRO successfully:

  • Investigate by diving into your data and collecting and filtering data
  • Understanding the data and find KPIs to measure success
  • Create optimizations by making a plan and setting it in motion
  • Evaluate and adjust based on the data you get back

In the end you should have enough data to validate if something would improve conversion rate in your eCommerce store.

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