What Is A “Good” Ecommerce Conversion Rate?
June 29, 2022
The Bolt Team
How you design your store and customer journey can greatly impact your ability to convert browsing shoppers into paying customers. That’s when conversion comes into play. Improving your conversion rate is affected by how you display your products, the amount of product information you provide visitors, and the marketing language you use with your products.
Increasing conversion is key to building a viable business. Be sure to fine-tune the checkout page, including content, copy text, and design for improving ecommerce conversion. There are many ways to improve your store’s conversion rate and there are practical steps you can take to increase revenue. First, let’s dig into what conversion is and what is considered a good conversation rate for an ecommerce business.
What is conversion?
In a nutshell, conversion is the number of visitors to your website who make a purchase. A conversion rate helps you understand how many people amongst your potential customers are more likely to buy and thus helps you understand how to “convert” them into paying customers.
One place to start improving conversion is by examining your store’s conversion rate optimization, which relies on using multiple software tools that help you manage your ecommerce site. The core CMS is the main software you use, but you will likely use a number of plugins, extensions, and other tools that help you manage your site. Here are some CRO software strategies to improve your ecommerce site.
How to determine conversion rates
For a more frictionless experience, shopper networks give consumers the power to create an account once, then you can calculate your conversion rate by taking the number of conversions divided by the number of visits and then multiplying it by 100. So if you are getting 8,000 visitors and 80 of them are conversions, then your rate is about 1%. The average ecommerce conversion rate is about 2% to 3%. A “good” conversion rate is above 3% for your online store.
How to improve conversion rates
Track metrics and abandonment rates
By the numbers, checkout abandonment is the largest problem ecommerce businesses face. Tracking your customer’s shopping journey will not only shed light on where your customers are dropping off, but also empower you to improve your online store to increase conversions.
Run A/B tests regularly to see which designs, layouts, and forms of content work best. This will help you continuously improve. When running A/B tests, alter only one variable at a time, so you can identify what impacts the performance of the new campaign.
Provide alternative payment methods
Consumers love Alternative Payment Methods (APMs). According to research by Bolt, the total number of Bolt merchant transactions that used an APM increased by 28% on Black Friday when compared with numbers from 2020. Buy Now Pay Later (BNPL) APMs like Klarna and Afterpay give shoppers the option of paying for their purchase installment with zero interest. By offering flexibility to customers in how they pay, merchants can increase conversion and appeal to a younger demographic of shoppers.
Build a frictionless checkout process
You should always be working to improve your checkout flow. Optimize using best practices for fast checkout design to streamline and speed up your BigCommerce checkout. You can sign up now for Bolt One-Click Checkout to attract more shoppers, reduce the steps customers must take to complete purchases and decrease abandoned carts. For more tips on how to increase your online store’s conversion rate, check out these 72 tips for increasing your conversion.