Everyone wants to increase the conversion rate of the e-commerce store. So, if your conversion rate is between 1 to 4% then you are within these limits and can be assured that you have a good conversion rate. Before that, you also need to learn about conversion.
It is all about the customer taking a desired action or buying your product. In the brick-and-mortar store if the person does not buy anything from the store is known as a tire-kicker. The e-commerce company would define the conversion rate as the number of sales transactions that happened and this is divided by the total listing page views.
The conversion rate is also defined as the number of people who see the product and the total number of them who make purchases. As per the report, the average conversion rate is 2%. According to the statistics and various studies that were done in the past 15 years, the average e-commerce conversion rate is around 2.63%.
Many factors decide the conversion rate. A good conversion rate depends on what you are selling and the market where you are selling the products. Based on the market, the conversion rate differs. The other major factor on which the conversion rate depends is the traffic. It is found that the conversion rate for the paid traffic is higher compared to the conversion rate of the organic traffic.
If the conversion rate is high, you can go for paid traffic, i.e., post ads about your e-commerce store or products. From these ads, customers will land on your website. Every e-commerce company needs to know the rate of conversion since it is an important piece of data that helps them implement the ad campaigns that can drive sales.
Conversion rate by industry
It is challenging for you to know the conversion rate information. The companies will keep this information confidential and never let anyone snoop on this information. The accurate information about the conversion rate is protected by companies.
There are a few store owners who would like to reveal their conversation rate and other indicators open. The conversion rate depends on the quality and quantity of traffic. This rate also depends on the products or services you sell and how you advertise the products in the online world.
A few of the variables that have an impact on the conversion rate of the product include product type, cost of the product, traffic source, a device from which the visitor or customer is accessing the e-commerce store, platform and location.
These are the variables that have a huge impact on the conversion rate strategies. There are also tools available to let you know the segmentation. A good e-commerce conversion rate irrespective of the industry you are active would show the conversion rate statistics, which ranges from 1% to 4% of the whole website traffic.
The following conversion rate is for every industry:
- Arts & crafts – 3.84% to 4.01%
- Electrical & commercial equipment – 2.49% – 2.70%
- Pet care – 2.51% to 2.53%
- Health and well-being – 1.87% to 2.02%
- Kitchen and home appliances – 1.61% to 1.72%
- Agriculture – 0.62% to 1.41%
- Baby and child – 0.71% to 0.87%
- Cars and motorcycling – 1.35% to 1.36%
- Fashion and clothing – 1.01% to 1.41%
You can easily track the conversion rate through various analytics and advertising platforms. There are many such platforms which you can use to generate formulas and use them to find out the percentage of visitors that are going to get converted actually.
All the browsing clicks are ideal for you, but turning the prospects into potential customers is the best. A few of the metrics you must consider are to pay close attention to get a clearer picture of the online conversion rate such as marketing channel conversion rate, campaign conversion rate, individual and conversion rate and keyword conversion rate.
There are different ways to increase the conversion rate the first being having a series of proven strategies and work tactics. Optimizing the conversion rate would enhance the power of marketing strategies.
The main part is to enhance the UX/UI landing page. Using such marketing tactics will increase the transactions from your existing traffic. If your conversion rate is between 1 to 4%, you can increase this to 2 to 4%.
Without proper strategies in place, you would waste money on ad campaigns which lead nowhere. The potential traffic that lands on the website and you are unable to convert this person to your customer is a loss of opportunity. CRO is highly effective to increase ROI and increase traffic.