The conversion rate is the most essential factor for any eCommerce platform in the present age. It is directly related to the sales for eCommerce and the higher your sales the better your conversion rate would be.
Conversion Rate – The eCommerce conversion rate is defined by the total number of sales (conversions) divided by the total number of visitors in a defined time period on an eCommerce platform.
The theory of having or driving a high number of visitors on your eCommerce presents an enhanced possibility of gaining maximum conversions is true to some extent but there are countless other crucial factors that affect the journey of a visit to conversion for the consumer.
We have brought together the complete guide about eCommerce conversion rate issues, reasons, benchmarks, and most importantly eCommerce conversion optimization strategies.
What is a Good eCommerce Conversion Rate?
There is this persistent question in the minds of people associated with the eCommerce industry that what is a good average eCommerce conversion rate?
An honest answer to this question is that the eCommerce conversion rate is influenced by countless variables that are unique and specific to each eCommerce platform and its aesthetics.
Statistically, the average conversion rate for eCommerce presently is 3-4% and if you have a better conversion rate for your eCommerce than this standard eCommerce conversion rate then you can give an appreciatory pat to yourself.
But that does not mean you are performing well overall, it means you are performing somewhat better and there is still a lot of potentials that your eCommerce can explore by analyzing, evaluating, & strategizing through eCommerce conversion rate optimization & analysis.
The Problem of Excess: Ecommerce Visitors
The Social theory of “The problem of excess” deals with the notion that the most widespread problems today are not of scarcity but of excess i.e having too much.
This theory is extremely closely related to the eCommerce industry as well where the dilemma is that having a high number of website visitors can be negative for your eCommerce.
Understand Through This Example:
Having 20 visitors and 5 conversions give you a 25% conversion rate for eCommerce whereas having 100 visitors and 5 conversions give you a 5% conversion rate.
Here having 100 visitors is a silver lining in dark clouds that means your promotional campaigns are effective in generating leads but 5 conversions show that your eCommerce platform engagement & conversion standards are low and incompetent.
It calls for you to address the underlying issue of why the 95% visitors left the eCommerce sales funnel midway through analysis & evaluation and increase eCommerce conversion rate with effective optimization.
Optimization: Ecommerce conversion optimization is basically a set of actions that you perform on your eCommerce website or relating to it in digital ecosphere to fine-tune & enhance your eCommerce platform for better customer engagement & conversion possibilities.
Strategies For Ecommerce Conversion Rate Optimization
We have listed 10 key eCommerce conversion rate optimization strategies that have been identified and brought together after comprehensive research and analysis.
1. Leverage Google Analytics to Understand Consumer Behavior
Before forming any strategy or action plan for your eCommerce business, you need to know who your target audience is, their interests, demographic data, geographics, persisting consumer trends & their online behavior.
Having an ideal buyer persona will help you determine what the audience is expecting from you as an eCommerce and then you can optimize your strategy and eCommerce platform accordingly.
2. Use Quality Product Images & Videos
As an eCommerce, what you have to offer to the consumers is a hub of diverse products. The more beautiful and attractive these products will look the better chances you have for conversions.
Consumers like to buy or have the intention to buy the products which are visually appealing.
Therefore, what you can deliver the best to the consumers is high-quality product images and videos on the product’s page. This will help consumers get a detailed view of product aesthetics.
Besides, you can also add video reviews and utility descriptions of the product and also product images in a realistic setting.
3. Embrace The Power of “Visual Shoppable UGC”
Visuals, Shoppable posts, and User-generated content are the three most influential elements for a piece of content. You can combine these three together and display them on your eCommerce website using a social wall.
Taggshop, a dedicated tool by Taggbox that lets you aggregate visual UGC from different social media platforms into a single feed and makes it as shoppable content for the users. You can embed that feed on your website simply and easily.
Shoppable posts are posts that allow users to buy the products directly from the posts in real-time and combining is with visual UGC from social media makes it a lot more interactive, engaging, and shoppable.
UGC is extremely helpful in shaping a consumer’s online shopping decision and 90% of consumers agree to it.
Adding visual shoppable UGC on your eCommerce can help you increase the conversion rate immensely.
It provides users with easy product discoverability, high-quality content, real-time shopping, shorter purchase journey, Social proof, and enhanced consumer browsing & shopping experience.
4. Offer Competitive Pricing With Free Shipping
This an excellent combination of two great aspects of online shopping that shape a consumer’s choice of eCommerce platform for their shopping activities.
Having competitive pricing it a crucial element in the eCommerce industry that can attract more consumers as pricing wars are continuously ongoing among eCommerce platforms for grabbing consumer attention.
Free shipping is a mandatory feature in present-day eCommerce that can reduce cart abandonment immensely as many visitors leave a transaction when they come across shipping costs.
So, Competitive pricing with free shipping can possibly increase eCommerce conversions.
5. Provide Strategic Discounts, Offers, Coupons & Contests
These are tried and tested tactics that always bring in results for the businesses. These can also be used for your eCommerce platform as well.
Consumers love it when they get offers and coupon codes when they are not expecting it. Coupons and offers psychologically influence consumers’ intention to buy.
Besides, you can provide seasonal discounts or discounts for occasions like birthdays, anniversaries, etc. This can also grab the attention of the consumers and bring conversions.
Also, you can organize contests or lucrative offers that require user participation in buying a minimum amount of products to stand a chance to win some products or reward points.
6. Checkout Process Analysis & Simplification
You want your consumers to have the best experience with your eCommerce platform and that does not just mean good products, competitive prices, offers, and free shipping.
But even their shopping journey should be easy and simple when they are making a purchase with your eCommerce platform.
A long, lengthy, and unconventional checkout process will lead to a high bounce rate and cart abandonment. Therefore, your focus should be to give the consumer an easy quick option for checkout with minimum clicks & information-filling.
You should continuously check and test your checkout process for any issues or shortcomings.
7. Build Social Proof With Product Authenticity
The one thing that Consumers have a big concern about is whether the products showcased on the platform will be the same on delivery as well i.e. there won’t be any discrepancy, deficiency, or shortcoming.
As an eCommerce, it becomes your responsibility to ensure that authentic products are being delivered to the customers. Authenticity will build reliability & trustworthiness of your eCommerce that is a big aspect that consumers consider while shipping online.
This will immensely help in uplifting your brand image in the eCommerce industry with social proof and this has the potential to drive conversions for your eCommerce with building customer loyalty.
8. Payment Security Optimization is A Must
Monetary safety & security has been a constant concern for consumers since the inception of the Internet.
When product authenticity could affect the consumers’ trust & reliability on you. Think how much trust it will take for them to enter their banking details on your portal.
Legitimacy & credibility are two elements that can help to build monetary trust for consumers.
Showcase Information privacy policies, install SSL, provide Cash on delivery option as much possible, trustworthy payment options, have virus & hacking protection software, etc.
9. Bring Exclusivity & Influencers
People are attracted to products that are exclusive and are highly curious about such products. You can collaborate with famous brands to bring in exclusive products to your eCommerce.
With having exclusive products, it will give a distinct identity to your eCommerce and you can also benefit from the collaborated brands’ goodwill and exposure through them.
Similarly, you can also collaborate with influencers to channelize traffic to your platform and also influencer’s recommendation will help in building trust among the users.
10. Constant SEO Optimization of Your Ecommerce
What can be more horrifying than having the best products & pricing but users aren’t even able to find you when they search for products or online shopping.
That’s why Search engine optimization is highly crucial as it helps you optimize your webpages & their content so that when people search for relevant keywords, you appear as the best option in search engine results page (SERP).
Having maximum relevant keywords and backlinks will help in getting more exposure in SERP’s and it will drive maximum traffic to your eCommerce platform.
Where On-page optimization can help you retain the users, gain engagement, and mover further towards conversions.
Bonus Guide: Key Minor Elements To Optimize
- Bounce Rate & Exit Rate: Analyze and research through analytics that why the users are leaving your eCommerce platform and their last point of interaction with the platform.
- Average Session Rate: Check the average dwell time of the users and if it is low then check your website for issues and if it is high but the conversion rate is low then you should check for product pages, payment options, & checkout process.
- Use CTA’s: Call to action buttons are necessary to make the job easier for the customers as they can provide direction to the users. Place the CTA is bold and in noticeable locations on pages.
- Simple Layout With Easy Navigation: It is essential that your eCommerce platform layout is simple and easy to browse & explore products for the users. And navigation through different pages is smooth and quick with minimal clicks.
- Speedy Responsiveness: Speed and responsiveness are crucial elements as consumers are looking for minimum time investment with maximum output. Your product visual & pages should load quickly & there is no lag.
Industry Experts’ Advice
The experts from the eCommerce industry recommend that you should analyze and formulate an eCommerce conversion rate optimization strategy that best suits your needs, goals, and objectives.
Besides, once the traffic comes in with your eCommerce conversion rate optimization strategy, you don’t have to just leave it there. Instead, you should retarget the visitors with a more personalized strategy constantly but do not spam their inbox.
Also, identify the key strategies that are working for your eCommerce conversion rate increment and filter your future strategy accordingly. This will help in enhanced returns on investments.
Ecommerce Conversion Optimization Tools
Some key tools that can be helpful in your eCommerce conversion rate optimization can boost your eCommerce sales.
1. Google Analytics
Google Analytics is a tool by Google that gathers user data from your eCommerce platforms tracking their on-site behavior, clicks, demographics, and many more insights.
TaggShop is a tool that lets you curate, moderate, and display highly engaging & attractive visual content from different social media platforms into a single social feed and embed it on your eCommerce with real-time shoppable option.
It provides instant shopping through UGC, maximum ROI, product discoverability, website vibrancy through visuals, etc.
VWO is a platform that provides solutions for visitors’ research, design optimization roadmap, run A/B testing & experimentation. It has features for planning, organizing, analyzing, and implementation of optimized customer experience.
Shoppimon is a secret shopper tool that monitors, tests, and analyzes issues relating to your eCommerce website that can hinder the user experience and negatively impact your conversions.
These issues can include but not limited to responsiveness, visuals not loading, broken links, server issues, site crash, payment gateway issues and much more.
Average Conversion Rate By Industry
The success of your eCommerce business depends on the number of successful conversions thereby increasing your sales. Before we reach the conclusion of this guide, here is an updated list of Average Conversion Rates by industry so as to give you a clearer picture of the importance of CRO for growth in any industry.
|Industry||Average CTR (Search)||Average CTR (GDN)|
|Dating & Personals||6.05%||0.72%|
|Finance & Insurance||2.91%||0.52%|
|Health & Medical||3.27%||0.59%|
|Travel & Hospitality||4.68%||0.47%|
This detailed eCommerce conversion rate checklist will help you get insights into what is good eCommerce conversion rate, what are the prevailing issues in eCommerce industry that are harming your eCommerce conversion rate, strategies to counter that, and tools that will help you do it.
It is not essential that you implement all of these strategies for your eCommerce.
You can research & find the areas of improvement for your eCommerce platforms and use the best strategies from these to boost your eCommerce conversion rate.
There are a lot of opportunities, audiences, and areas that you haven’t explored yet. So, eCommerce conversion rate optimization is a crucial step that you need to constantly undertake to attract, engage, and convert the users.
This guide can help you understand & execute the eCommerce conversion rate optimization successfully.
So, Get your customers now with the help of this guide.