FREE eCommerce Conversion Calculator
Ecommerce Conversion Results
See how a lift in a specific site progression may affect your site’s conversions and revenue:
Our eCommerce conversion calculator can make things easier for you. Calculate everything from the Add to Cart Rate, to the Cart to Checkout Progression rate and find your business site viability. Know how engaged your customers are just by putting in your monthly visitors and the average order value.
Our eCommerce conversion calculator is simple and takes only a few seconds to work. More importantly, it’s FREE!
What is an e-Commerce Conversion Rate?
If you want to know about the e-commerce conversion rate, first understand the meaning of conversion. It is a term we generally use in sales or marketing. The conversion process occurs when a potential customer acts in a way that directly or indirectly results in a sale or brings them closer to making a purchase.
A conversion action can be anything like visiting a website and clicking on a link, subscribing or signing up for a newsletter, filling out a form, or adding some products to a shopping cart.
So, what is the conversion rate?
Well, it is the ratio between the number of people visiting your website or landing page and the number of people who buy something from it.
Why Is Conversion Rate Important?
If you are running your business in Shopify or WordPress, it is important to know how to increase your conversion rate and why it is crucial in order to boost your business. And for that, you need to learn about conversion rate optimization (CRO).
It is basically some techniques that will help to develop the conversion percentage of your online store or mobile app.
Many marketers tend to underestimate the importance of CRO. But here, we will discuss why this CRO is vital to enhance the conversion rate and ultimately provides a better user experience for your website.
1. Builds traffic for your website
By optimizing the conversion rate—you can lower the cost to acquire potential customers and get free members for your website without wasting more money on the advertisement purpose. CRO helps to create a growth loop that will ultimately affect your traffic and boost profits.
And nowadays, with the growing popularity of e-commerce stores, it is pretty impossible to compete with big retailers. But CRO will help make your website user-friendly by leading customers to take the desired action you want and ultimately increase conversions.
2. Help to boost revenues and profits
A higher conversion does not correlate with increased costs. You must know it is possible to optimize the elements of your online stores with fixed costs and advertisement. By removing variable costs like extra distributions and extra units, you can save money to develop the business.
For website optimization, marketers spend lots of money on PPCs ads or on some other things, but with CRO, you will notice spending less for the customers while benefiting more.
3. Knowing your customers
Knowing the customer and their behavior are the main thing to growing your business, and CRO can help you with that. CRO strategies will help you to understand the customers’ requirements, their purpose for visiting the site, and the other behaviors that will develop a basis for the CRO.
It will help you analyze the functionality of your webpage and how to work on the different elements by getting feedback from your audiences.
4. Utilizing the existing assets
When you have a good number of visitors to your online store, your job will be to convert them into potential customers. You can apply some growth tools that will utilize the existing assets to analyze the users’ activity when they visit your site.
One of the most popular tools is Google Analytics. It provides information based on audiences’ demographics, page views, using devices, and other essential things. Google Analytics helps you to understand how to optimize your sites to boost engagement.
5. Boost search engine rankings
Nowadays, buyers tend to search for your website online before purchasing anything from your e-commerce stores. So Search Engine Optimization (SEO) is vital for your business.
If the consumers don’t find you on the search engine, it will not develop trust in them and ultimately will not generate high traffic. So, try to focus on optimizing the web pages and the keywords to get a high rank in the search engine results pages (SERPS).
6. Getting business leads
Optimizing different elements is necessary as it helps improve leads and increase the conversion rate by collecting specific information about consumers and visitors.
After getting the leads for your online business, try to apply them properly, such as having a conversation with the sales rep regarding sales methods, your brands, and your products.
You can also encourage users to go through a specific action. And by that, you will get qualified leads. For example, the conversion rates for free trial users may be lower than those who sign up for product demos; you could improve the conversion paths for those who enroll for meetings or demos.
7. Creating profitable advertising campaigns
CRO improves the traffic and comes with profits that ultimately carry a massive success for your business. In short, social ads are a game changer in terms of bringing leads and creating valuable data so that you can create advertisement campaigns for your e-commerce business.
Moreover, you might know that PPC (pay-per-click) is good for earning high traffic, but it is getting expensive over time which is nothing but a luxurious entity for small retailers.
Additionally, CRO does not guarantee to convert all the clicks into sales. And that highlights the importance of CRO in current times even more attractive among marketers.
In simple words, the main reason behind marketing is to drive traffic and capture attention for your e-commerce stores among audiences. And CRO is the most effective and budget-friendly way to boost conversions while dealing with the massive hike in digital advertisement.
8. Reduces the investment cost
According to Harvard Business Review, retaining existing customers is 5 to 25% less costly than searching for new ones. By that, you can understand how essential the retention value is and how much you need to invest for new customers, and CRO will help you with that.
How do you calculate the eCommerce conversion rate?
The calculation of the e-commerce conversion rate is simple, and there are some simple steps to follow. So, let’s take a quick look at how you can calculate the conversion rate,
- First, you need to collect the number of visitors to your online store. You can do that using some free or paid tools, such as Google Analytics, Similar Web, and Alexa.
- The next step is collecting the conversion numbers. It depends on the business’s purpose and how your brand defines conversion. There are multiple ways to count the conversion, such as downloads, submit forms, numbers of orders, and contacts.
- And the last step is to apply a formula and calculate the conversion rate.
Conversion Rate Calculator Formula
The conversion rate formula: Total number of conversions/Total number of visitors to your website *100%.
This formula will help you understand the overall picture of your website and the other activities with the ultimate goal, which is purchasing the product.
What affects your conversion rate?
Optimizing the conversion rate is crucial to enhance your business. But there are certain factors as well that may affect your store’s conversion rate. Let’s try to understand those effects in the following section,
The industry type
In general, the overall conversion rate is nearly 2 to 3%, but when you differentiate it into industry type, the results will vary. For instance, for arts and crafts, the conversion rate is the highest—4%, while for the baby and child, it’s the lowest—0.7%.
The product type
The conversion rate will also vary with the type of products you sell. For food and drink products, the ranges vary between 3.6 to 7.2%, and in the case of furniture, the rate is pretty low—it’s just 0.7%.
The purchasing behavior of the customer may differ with the countries as well. It is important to check the consumers’ location while checking the conversion rate.
It is the most vital thing of all. And has a huge influence on your conversion rate. Referrals and emails are the warm traffic sources that can build massive conversion rates, while social media or paid advertisement is the cold traffic source with low conversion potential.
The types of devices customer use
The conversion rate can differ when you use mobile instead of desktops. It is because some sites are easier to navigate using a desktop instead of your smartphone. The average conversion rate of the smartphone is 1.8%, and for the desktop, it’s 3.9%.
How to improve your store’s conversion rate?
1. Optimizing the landing page
It is necessary as this is the first decision-making process for the customer to purchase any product from your store. We can count a conversion when a buyer successfully completes the whole purchasing process.
The first step is to click on an advertisement that will let them to a landing page. So, making an attractive landing page is the first thing to improve conversions,
- Write concise and clear content on the landing page
- enhancing the call-to-action (CTA)
- displaying alluring and beneficial headlines
- Capture the customer’s attention with innovative designs
2. Boosting the traffic quality
It is another essential part of enhancing your conversion rate. Using the wrong infographic or misunderstanding the behavioral tactics may end up with low numbers of potential customers.
Customer behavior on the landing page may suggest that a lack of buyer personas describing your targeted customers is the reason most of them leave. So, your focus should be on potential consumers only.
- Always do proper and deep research.
- Try out different elements to optimize your webpage—so that it can match the user’s personas.
- To generate high-quality leads, you should analyze all types of marketing channels and select the one that is most suitable for your segment.
3. Optimizing the check-out methods
According to data, there is a tendency among customers to leave the cart when they have to go through a long check-out process. It is typical for online store customers to take their time selecting products, but they are always on the verge of completing their purchases once the cart has been filled.
Moreover, another common thing is buyers tend to go back to the previous steps during the check-out process. And in this period, they take a lot of time to reconsider the items, and there is a high chance of not completing the purchase.
Now it is impossible to shorten the steps, especially if the customer is new but what you can do is apply the one-step check-out method. That will involve all the necessary processes in just one step. This method allows the guest purchaser to perform the check-out step without doing the registration, and that ultimately helps increase the conversion rates many folds.
What is a good conversion rate for eCommerce?
The average e-commerce conversion rate varies between 2.5 to 3%. Your chances of making a sale on the website are approximately 2 to 3% if everything is done right. So, a conversion rate nearly or above 3% can be considered as good. And many top marketers can reach this percentage.
What is a good conversion rate for dropshipping?
A good conversion rate for dropshipping stores varies between 0.6 to 3.1%. You will find several tips on the internet to increase the conversion rate for dropshipping.