How do I calculate the conversion rate of my e-commerce company and how can I use my online marketing to optimize the conversion rate? If you have asked yourself these questions before, then we have the right tips for you here. E-Commerce Conversion Rate: Calculation and Optimization
In this article we explain what the e-commerce conversion rate is, how to calculate it and how to optimize it.
What is the conversion rate in e-commerce?
In digital marketing vocabulary, the conversion rate refers to the proportion of Internet users who perform a desired action. It is calculated as follows:
Number of users who actually perform an action / Number of users who could have performed it
This action can take different forms: E-Commerce Conversion Rate: Calculation and Optimization
In the broadest sense, an e-commerce conversion rate exists at the moment when an action is feasible on a webshop. It represents the possibility of measuring how often this action is performed.
Because you need to be able to measure your e-commerce conversion rate, interpret it and re-orient your e-commerce strategy if necessary.
How do you calculate the conversion rate?
The conversion rate is calculated based on the following principle: it is the number of users who performed an action in relation to the total number of users who had the opportunity to perform that action. E-Commerce Conversion Rate: Calculation and Optimization
For example, the most common conversion rate in e-commerce is the one that indicates the proportion of visitors who bought a product in relation to the total number of visitors who visited the site.
By simple division, the conversion rate into a sale can be calculated. The calculation can be schematized as follows:
Number of visitors who completed accurate mobile phone number lead a transaction / total number of visitors to the site of that store.
Multiply the result by 100 to convert it into a percentage.
Example calculation
Suppose your online store receives 100,000 unique visitors per month. Of these visitors, 2,000 made a purchase.
The conversion rate for a total purchase on Уводзіны ў 1300 Numbers: што гэта такое your website is.
There are numerous web analytics tools atb directory that you can use to measure the performance of your e-commerce website. The most popular is Google Analytics, but there are also alternatives such as Matomo, AT Internet or Adobe Analytics. E-Commerce Conversion Rate: Calculation and Optimization
As a business, it is essential that you perform a performance analysis of your e-commerce platform. Your website’s conversion rate is one of the crucial pieces of information you should keep an eye on.
Does your online store have a good conversion rate?
To evaluate a conversion rate, you need to know the general average. However, averages vary depending on the transaction analyzed.
However, it is possible to establish an average between specific operations in a given industry by comparing several companies.
The conversion rate remains a rate, a percentage: small companies are quite comparable to the giants of the Internet, provided that the operations analyzed are similar.
So to determine whether your conversion rate is good or not, you need to compare your results with those of the best companies in your industry.
Your company is comparable to another if it has enough similarities.
These include:
The type of products or services,
The price range,
The type of customer relationship: B2B (sales to other companies) or B2C (sales to individuals),
The geographical location (preferably a company from the same country),
The operating system on which the data is collected (Windows, Macintosh, iOS, Android or others),
The count of Internet users (number of sessions or number of unique visitors),
Some examples of e-commerce conversion rate
An Invesp study found that, on average, the conversion rate of US e-commerce websites never.