How to Increase eCommerce Conversion Rate in the Online Store? 5 effective ways
Let's face it: running an effective online store is no small feat.
First, you need to decide what you are going to sell and what target group you want to reach. In the next steps, you should think about choosing a platform, creating a graphic layout and planning the supply chain.
In today's article on our blog, we will answer questions such as:
- What is ecommerce conversion rate?
- How do we measure conversion rates?
- What conversion rate value is good for an online store?
- What can an eCommerce website owner do to drive more conversions?
What is conversion and conversion rate?
Conversion occurs when your webstie visitor website reaches a certain goal, such as signing up for a newsletter or making a purchase.
The percentage of all users who converted is called the conversion rate. Today we focus on eCommerce conversion rate.
Depending on the specifics of your website or the type of conversion activity you are conducting, they may include:
- online sales,
- registration for the newsletter,
- subscription to the service,
- completing the forms.
Earlier on the blog, we wrote about 10 proven and simple ways to improve the conversion rate in an online store. Today we share 5 more!
How to measure the level of conversion?
Calculating your eCommerce conversion rate is relatively simple.
All you need to do is divide the number of conversions in a given time period by the total number of people who visited your site or landing page and multiply the result by 100%.
Conversion rate = (number of conversions / number of users) * 100%
However, to calculate your conversion rate, you first need to track the conversions themselves.
With a little extra effort, you can do it through most advertising and analytics platforms.
The most important analytical tools for measuring conversion and sales volume of an online store include:
- Google Analytics,
- Google Ads,
- Facebook Ads,
- Other tools supporting the operation of the online store.
Interestingly, the mere fact of conversion tracking means that it stands out from the competition on the market.
Disruptive Advertising has reviewed over 2,000 Google Ads accounts and found that as many as 42% of Google Ads advertisers do not track any conversions. Optimal conversion rates can mean the difference between profitability and failure of your store.
Due to this, many eCommerce website owners wonder if the value generated by their website is adequate compared to the competition.
The answer to this question is a bit more complex. Average values of eCommerce conversion rates depend on many factors.
The most important are the target market and the country of operation.
Recent research shows that the average conversion rate in an eCommerce marketplace is around 2%, but some websites can convert up to five times as often. If we look at the graph of conversion rates by industry, we can clearly see that online arts and crafts sales and online drugstores are in the lead. The value of the conversion rates for toy stores is 3 times lower. We can also observe a clear difference between stores operating in different countries. German online stores are taking the lead, while Italian companies showed an average conversion rate of almost half as much.
What can I do to increase the conversion rate of my online store?
If you notice that your store's conversion rates are too low and you feel your site should sell more and do it more efficiently, you do not need to worry.
There are many ways you can improve your online store site to generate more revenue.
1. Increase your site speed
The speed of loading the store page has a very large impact on the conversion rates of the online store.
The latest figures show that if your website takes longer than three seconds to load, around 53% of your customers lose interest.
Even a one-second delay can indirectly reduce conversion by up to 7%.
In the case of an eCommerce website that earns PLN 2,500 per day, this 1-second delay can generate up to PLN 62,500 in potential losses within one year.
Due to this fact, a very important aspect of running an online store that has a direct impact on sales is monitoring the speed of the website.
There are some helpful tools that can help with this:
- Google Page Speed
- GT Metrix
In addition to the standard page speed test, Google Page Speed also offers tips on how the website owner can speed up the page.
At the beginning, you should focus on disabling unnecessary extras and pop-ups and adjust the formats of displayed graphics.
2. Expand personalization
eCommerce personalization means providing potential customers with personalized offers, tailored to their preferences based on their previous activities, demographic data and other personal data.
All this is made possible due to the use of solutions based on artificial intelligence and machine learning.
In recent years, most online store customers take it for granted that online stores will try to adapt to their needs.
According to the latest data, 74% of customers feel frustrated when website content is not personalized and 80% of them are more likely to buy from a company that offers a customized experience. There are two main ways to personalize your store's customer experience:
- Providing them with dynamic content
- Providing easier navigation on the store's website
The level of personalization of the store page has a direct impact on the eCommerce conversion rates and sales volume of the store.
It is estimated that due to poor personalization, online stores in the United States have lost up to $ 765 billion in potential profit.
What's more, Granter predicts that the introduction of solutions that personalize customer experience may result in an increase in sales by up to 15%.
Among all systems improving the personalization of the store, product recommendations are a very accessible and simple solution to start with.
3. Take care of a convincing graphic design of the store's website
To increase the sales of your online store, make sure that the visual side of the store attracts potential customers and the arrangement of tabs and categories is simple and intuitive.
It is worth ensuring that each product is presented in as much detail as possible. Using professional photos and videos of products is recommended.
The x-kom.pl online store provides a great exampleof using various creative ways of presenting the offered products on the website. Each item is professionally photographed and additionally offers an interactive presentation in 350 degrees. Such solutions will be able to entice undecided users to make a purchase and increase your eCommerce conversion rate.
4. Optimize the website for SEO
SEO, or search engine optimization, means adjusting the store's website in such a way that it appears high in the results of search engines such as Google after entering a specific phrase related to its activity.
To optimize SEO in terms of increasing eCommerce conversion rate, you should focus on the 3 most important aspects:
- valuable content on the website,
- user traffic data.
There are many tools that can help optimize your store's sales:
5. Facilitate the ordering process
According to Facebook, 87% of consumers say a complicated payment process will cause them to abandon their shopping cart.
One of the easiest ways to solve this problem is to reduce the number of pages in the checkout process and make the interface for placing orders simple and transparent.
William Chin-Fook, Senior Product Manager at bumblebeelinens.com:
The most important tip for increasing the number of conversions is to reduce the number of steps required to add a purchase, thus shortening the conversion path process. We have already written more about the advantages of simplifying the ordering process and the impact it can have on eCommerce conversion rates on our blog in the article about the One-Step checkout strategy.
In order to optimize sales results, it is also worth allowing customers to make purchases without the need to create an account.
Some may just want to make a single purchase or are looking for a gift for a friend and are not interested in your products themselves.
There are so many things you can do to improve your eCommerce conversion rate that you may not know exactly where to start.
Although the aspects we have discussed in this article should be enough to significantly improve your website performance and improve conversion rates, it's always worth looking for more ways to improve your website, both from the front and back-end.