How to calculate your e-commerce conversion rate

Do you know what your online shop conversion rate is?

Conversion rate is one of the most important metrics for your online shop – but do you know what it is, how to calculate it and how it can affect your sales income?

How to calculate your e-commerce conversion rate

  1. Find out how much traffic your site gets each month

    Use Google Analytics or your onsite reporting tool to find out how much traffic you get in a single month. Use the “sessions” data as the metric.

  2. Find out how many sales your site makes each month

    Use your site record, Google Analytics Ecommerce reporting, or your own customer records to find out how many sales you made in the same month.

  3. Use the following calculation to calculate the conversion rate

    Total sales / total traffic x 100 = conversion rate %

    Example
    25 / 1200 x 100 = 2.08%

Online conversion rate calculator

Use our online conversion rate calculator to work out your e-commerce store’s conversion rate.

Move the sliders to see the conversion rate.

What is a good conversion rate for my online store?

Conversion rates for online stores are affected by lots of factors, including the type of product you’re selling, how much it costs and the decision making process for the product. For example, buying a holiday is more costly and is a longer decision-making process than buying a new shirt.

As a guide, an average e-commerce conversion rate is between 2 and 4%.

If your store’s conversion rate is 5% or higher WOOHOO! you’re amazing, well done!

If the conversion rate for your online shop is lower than 1% you have a problem somewhere in the buying process.

Store owners with low sales often want to immediately increase traffic in the reasonable expectation that more traffic will mean more sales. While this can be true if your site has a low conversion rate you could end up putting all your energy, time and money attracting traffic that isn’t going to buy from you.

Increasing the conversion rate of your site will increase your sales and sale income without you having to attract more traffic. And, when your conversion is where it should be and you do invest in increasing traffic you can be confident that that traffic will be customers that buy.

What can I do to increase sales conversion in my online store?

There are many factors that affect conversion rate many of which are simple to implement on your site. If you’d like to find out more about conversion rates and what you can do to increase the buyability of your online store join me for a free 5-day challenge where you will learn all about turning browsers into buyers.

What’s your conversion rate – tell me in the comments…

Ruth

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