For many online retailers, e-commerce conversion rates are a big problem. Optimal conversion rates can make the difference between profitability and failure. Abandoned shopping carts are one of the biggest frustrations for online retailers. Even worse is a steady influx of website visitors who don’t even start the checkout process. Site visitors who don’t buy anything are like money on the table. You have done the hard work to attract visitors, but now you cannot make the deal.
This article explains the average ecommerce conversion rates and exchanges best practices for optimizing ecommerce conversion rates.
What is e-commerce conversion?
A conversion rate is the percentage of all users who take a desired action on a website. A conversion rate can apply to clicking a link or signing up for an email newsletter. In e-commerce, the goal is to get visitors to buy something. the eCommerce Conversion Rate Definition Google is “the ratio of transactions to sessions, expressed as a percentage”.
In other words, the ecommerce conversion rate is the percentage of all website visitors who actually buy something.
What is a good ecommerce conversion rate?
It’s difficult to know how good, or even average, the ecommerce conversion rate is because websites closely monitor this information. In addition, conversion rates vary by industry: low-priced items such as groceries and clothing have higher conversion rates because customers are less reluctant to spend less. High-priced goods and services such as travel and furnishings have lower conversion rates.
Overall, the average e-commerce conversion rate in all industries is between 2 and 4%.
How to calculate ecommerce conversion rates
As stated above, the definition of ecommerce conversion rate is the percentage of website visitors who buy something. So you can determine this by dividing the number of visitors who buy something by the total number of website visitors and then multiplying that number by 100.
The e-commerce conversion rate could be expressed by the equation (visitors buying something / total number of website visitors) x100. If your website has 200,000 unique visitors per month and 4,000 buy something, your conversion rate is 2%.
10 tips to optimize your ecommerce conversion rate
If you’re looking for ways to improve the conversion rate on your website, here are some best practices.
Reduce loading times
You cannot be responsible for the internet connection of your website visitors, but you can optimize your own website. It starts with your website hosting and CMS. Also make sure your pictures are compressed. (High quality images are also important for sales, so do not remove them to reduce loading times.)
Use responsive web design
Responsive web design is coded so that it automatically adapts to the device with which the user accesses the website. A user of a phone automatically receives the mobile site and does not have to laboriously scroll through the poorly dimensioned user interface.
Web design still tends to prefer desktop, however Mobile e-commerce is expected to account for 45% of total e-commerce in 2020. Problems navigating a website due to lack of mobile optimization, like the other friction points mentioned above, can increase the bounce rate from second to second.
Make your website easy to navigate
A high bounce rate or long browser times can make your website difficult to navigate. If users can’t find what they’re looking for, they can’t buy it. As mentioned earlier, you should find a balance between displaying all of your products and their simple search, e.g. B. with drop-down navigation fields.
Use user-generated content
User generated content (UGC) such as product ratings can very effectively get customers to buy. In some industries, UGC can increase conversion rates by up to 200%.
Customers find customer reviews and photos more trustworthy than copies that come directly from your company. UGC can also be customized so that each visitor sees visual albums tailored to their customer profile. If you have positive customer reviews for your products, mark them on your website. (If you don’t, platforms like Yotpo can help you collect reviews.)
UGC on the homepage can reduce the bounce rate and quickly build trust. UGC on category and product pages can increase the click. And UGC in your checkout process can increase the conversion rate.
Use short and limited offers
Consumers hate missing out on a deal. It is basic human psychology to fear losses more than to estimate gains. For e-commerce, this natural tendency is clearly evident in the limited time offer. By specifying a temporary coupon code in a popup or email, customers can be prompted to buy an item that they had previously only considered. The same applies if an item is displayed as low in stock.
Reduce steps at checkout
According to Facebook“87% of consumers say they have to leave their shopping cart through a” complicated “buying process.” One of the easiest ways to fix this is to reduce the number of pages you check out. If possible, check out a single page. Just ask for essential customer information.
Add payment options
If you do not accept your customer’s preferred payment option, they may cancel the incomplete purchase. Digital purses are an increasingly popular way to increase ecommerce conversion rates due to their higher speed and convenience. They are also digital wallets preferred by many mobile buyers. Accepting payment forms like Apple Pay and Samsung Pay can therefore both reduce friction and help attract mobile buyers.
Add a security or trust seal to the checkout
According to a study, 18% of consumers canceled a checkout because They did not trust the website with their credit card information. The same study found that any symbol that indicates security on the checkout page can increase user confidence. The most effective was the certification label from Norton, the web security company. (To get the seal on your checkout page, you need to purchase a protection plan.)
Trust marks from Google and The Better Business Bureau were also effective. These seals do not mean technical protection. You can earn them through an application process with the organizations.
Providing free shipping is one of the most expensive ways to optimize ecommerce conversion rates, but it’s also one of the most important. Baymard shows that a whopping 50% of consumers who have placed items in an online shopping cart do so because of additional costs at checkout like shipping.
There are additional benefits that can offset the costs. Studies have found that out Customers spend more per order with free shipping (sometimes to meet minimum requirements) and wait longer for an order when shipping is free.
Use abandoned shopping cart emails and texts
Reaching customers who have left unsold items in their online shopping cart is the most straightforward tactic to increase conversion rates for e-commerce. Canceled shopping cart emails can be as simple as a reminder or include more advanced branding, copying, and behavioral techniques (such as the shortage and limited-time appeals discussed earlier). Text messages for abandoned shopping carts are another great way to motivate customers.
As a small business ecommerce owner, you have enough problems getting users to your website. Don’t lose them at the last second as a customer. With a few simple steps, you can increase your conversion rates and get the most out of existing website visitors. Click here to learn more about how Yotpo can help.
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