Everybody wants to know "what should my conversion rate be?" Although there's no way to provide a specific answer, three recent studies offer some perspective and guidelines for e-commerce retailers.
According to this large-scale e-commerce study, the average conversion rate (measured by sales) is 1.40%. Looking more closely we see about 5% click through rate on website-to-basket and 30% on basket-to-checkout. This suggests a big opportunity to improve the final stage in the conversion funnel.
Mobile and tablet together accounted for nearly half of website traffic (43%) and contributed to just over a quarter of revenue (26%). Mobile alone accounted for 26% of traffic but only 10% of revenue.
Conversion rates vary by device: Desktop 1.8%, Tablet 1.37% and Phone 0.61%.
Of course the study doesn’t indicate to what extent the sites are mobile-friendly and fast loading. Common sense user experience tells us a site that’s slow and difficult to navigate is going to perform poorly, especially in terms of conversion.
Another study by Adobe Digital Index aggregates data from 300 websites and sets the average conversion rate for ecommerce sites at 1.8% and for U.S. retail sites in particular at 3.2%.
The Marketing Sherpa E-commerce Benchmark Study shows that over 70% of the 4,346 ecommerce sites in the survey have a conversion rate greater than 1%.
Two factors have been shown to reduce the overall conversion rate. Websites that have a brick-and-mortar store tend to have lower conversion rates, presumably because shoppers may do research online and then visit the store to complete their purchase. Likewise, if you take phone orders from your website your conversion rate may be lower.
Other key performance indicators (KPIs) include "time on site" and "pages viewed."
Both have positive correlations with conversion rate, so we recommend you look at these metrics for your site and come up with a strategy to improve them.
We can distill these studies down to three important lessons:
- Whatever your conversion rate is, it could be higher. Small incremental improvements add up.
- Increasing the time on site and pages viewed will lead to a higher conversion rate.
- If you don’t have a mobile-friendly site or if your site is slow, you’re losing money.
Let's work together
Tell us about your project and we'll get back to you shortly.
Join The Conversation
More On The Blog
8 Best Ruby On Rails Gems For eCommerce Applications
Everyone within the eCommerce space knows of Ruby On Rails. This framework is used by approximately 3,866,870 websites right now, showing just how efficient it can be for creating efficient yet beautiful web applications. Now, this unique Ruby-based framework comes with its fair share of add-ons and extra features to discover as well. One of the most important ones is the gems in Ruby On Rails.
Sol Dieguez — Nov 30, 2022
How To Improve Your eCommerce With PHP
With the ever-changing state of the IT industry and the fluctuating eCommerce development trends, it’s more than necessary to be flexible in trying out different tech stacks for your eCommerce site. Now, PHP is one of the most popular programming languages out there, and one with a long-standing track record.
Sol Dieguez — Nov 24, 2022
Tips For Getting The Most Out Of Your AWS Free Tier
This cloud computing service currently has over one million users, with enterprise-scale customers making up about 10% of their clients. This shows just how widely used AWS is and gives a solid reason to try it out: it seems to work for most eCommerce businesses out there. Now, there’s a way to check out AWS for free and see if it works for your online business.
Sol Dieguez — Nov 18, 2022