For ecommerce business owners, your main goal generally centers around making a profit and growing your customer base. Software helps you automate your ecommerce business, but what are you doing to improve your conversion rate? To stay focused and keep your business moving in the right direction, you need to have a broad understanding of your conversion rate, and how customers interact with your site. Here’s what you need to know about your conversion rate, and how to always improve upon it.

What is a conversion rate?

First, let’s break it down to simple building blocks. A conversion rate is defined as the proportion of visitors who take action beyond browsing on a website. For ecommerce retailers, a conversion rate would include the number of sales made divided by the number of visitors that explored your site or visited a specific product page.

Why is conversion rate important?

In addition to helping an ecommerce business owner understand how profitable their company is at the moment, it also helps you predict sales, forecast trends, or pinpoint what areas of your site need work.

How can I find my conversion rate?

Investing in a website analytics program like Google Analytics (free) or Kissmetrics (not free) can help you get a better look at how many visitors come to your site vs. the number of sales that result from those visitors. If you currently don’t employ an analytics software, a simple way to manually determine your conversion rate can be found here.

What is a good conversion rate?

When it comes to conversion rates, the higher your rate, the better. That said, the average conversion rate for online businesses is 2-3%. According to ecommerce experts, the point of conversions is to not aim for the average percentage. Instead, just focus on improving your own site’s conversion rate over time.

Now that I know my own conversion rate, how can I improve it?

Though we have previously discussed improving your conversions at length, there is a wealth of information regarding conversions and new strategies to try. Here are a few more tactics to implement for your online shop.

1. Create Impactful Ads

Before creating ads for your site, you need to have a solid grasp on your audience and how best to reach them (i.e. through your social media accounts, newspaper, direct mail, etc.). Professional images and pithy, keyword-rich copy will capture your audience’s attention and encourage them to click to your site. If your business utilizes PPC advertising such as Google AdWords or Bing Ads, you need to know what search keywords to plug into your copy. We have an article that discusses the ins and outs of PPC advertising here.

2. Make Searching for Products Easier

Customers do not want to explore a page that is bogged down with unnecessary content. To encourage your site browsers to follow through with purchase, make sure your website is easy to navigate and free of fluff. Including a search bar, adding search filters and utilizing auto-complete can help potential customers get to the products they’re interested in. Kissmetrics provides insight on making search more efficient in this article.

3. Include Customer Reviews

A reported 68% of customers look to the opinions and experiences of others when making purchasing decisions. By including real customer reviews on your webpage, you will increase buyer trust and up your chances that a potential customer will convert.

4. Take Great Photos

We have discussed the importance of excellent photography in previous articles such as “4 Ecommerce Product Photo Mistakes You’re Probably Making” and “3 Easy and Cheap Ecommerce Product Photography Hacks”. Make no mistake about it, product photos can make or break your conversion rate. When customers see high quality photos, they assume that the products are high quality as well (and therefore more trustworthy).  The opposite can can be said of a website with photos that are of poor quality. Investing in good product photos will be beneficial for your perceived trustworthiness, sales, and overall conversion rate.


Your conversion rate is an essential glimpse into the current health  of your business, as well as what future sales may look like. With these new tips, in addition to our previous ones, you should feel confident in improving that conversion rate in the near future.

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