Whether it is a new business or an existing retail brand, understanding ecommerce website conversion rate is important. It sets expectations properly and helps with outlining what is required to succeed. It is important to track conversion rate for all websites, but especially for online retailers with e-commerce websites. When the goal is to generate online sales and improve them, conversion is critical. Paying attention to improving conversion rate is just good business. Any size retailer for any type of products can benefit from understanding ecommerce website conversion rate better.
The retail brand that invests into their website over and over to continue to improve it will experience a multitude of benefits. An increased conversion rate is just one of them. A stagnate ecommerce website is performance not as good. Even with marketing campaigns such as Retail SEO (Search Engine Optimization), websites are drastically improved. This further tends to improve conversion rate for online retailers. Fresh quality, unique, and relevant content frequently published on the website further continues performance.
To calculate conversion rate for websites with stores there is a simple formula. The formula can be utilized for any size organization. Below here is an example to illustrate how to calculate properly ecommerce website conversion rate.
ECommerce Conversion Rate Formula Example
Ecommerce conversion rate = (Online Store Transactions / Visits to Ecommerce Website) * 100
For Example: 100 transactions / 4000 website visits * 100 = 2.5% Conversion Rate
Basically, the formula explains how many people come to the ecommerce website but do actually what you the retail brand wants them to do such as buy a product. Or for it could be to sign up for the newsletter, re-order, and so on. The goals can vary and change. The formula can be applied to calculate all retail brand efforts to improve online sales, operation, and market share gain. Often, further testing is necessary such as A/B testing. It is also at times called sequential testing. It is done to get better results through metrics.
Average Ecommerce Website Conversion Rate
As you have become familiar with the conversion rate formula, you may ask yourself what the average supposed to be. There is often some confusion about the average performances of ecommerce websites. Industry statistics have created as well as accepted an average or standard. This ecommerce conversion rate is between 1% and 3%. This is the reason websites require lots of quality traffic. Only a small percentage end up doing what you want them to. Higher conversion rates have been seen but it is not the average.
Improving Ecommerce Website Conversion Rate
One of the best methods to improve ecommerce website conversion rate is to work with professionals. Digital agencies have the right skills, solutions, and staff with experience to provide assistance. SEO campaigns improve much, as well as website design services, conversion optimization further does test and improvements. Marketing services in general will provide the necessary assistance. There is much that can be done to increase online sales. The first step is always understanding ecommerce website conversion rate. Then, improvements can be made for better results.