There are more than 26.5 million online stores globally, with the US maintaining 14 million sites overall. If you’re an online store owner, you’ll want to make sure you know how well you’re turning visitors into buyers with countless stores vying for attention. That’s where learning about eCommerce conversion rates comes in.
eCommerce conversion rates aren’t simply numbers—they offer invaluable insights into consumer behavior and business performance. They reflect how effectively your online store turns visitors into buyers. With more people shopping online than ever, being able to measure and improve your conversion rate means you can better connect with customers and stand out in a crowded market.
This guide explores the average eCommerce conversion rate in 2024, unpacking its implications for online retailers.
What are eCommerce conversion rates?
Conversion rates are a percentage that tells you how many of your website’s visitors complete a desired action out of the total number of visitors. This “desired action” can vary depending on your goals.
For an online store, a conversion typically means making a purchase. However, it can also include other actions like signing up for a newsletter, downloading a guide, registering for a webinar, or filling out a contact form.
How to calculate your conversion rate
The formula for calculating the conversion rate is straightforward:
Conversion rate = (Number of Conversions/Total Number of Visitors) × 100
For example, if your website had 1,000 visitors last month and 50 of them made a purchase, the formula would look like this:
Conversion rate = (50/1,000) x 100
Therefore, your conversion rate would be 5%.
Why are conversion rates important in eCommerce?
Businesses need numbers, and statistics are essential to show you what’s working and what’s not, helping you make smart decisions to grow and improve. By learning all about conversion rates, your business can achieve several key benefits, such as:
- Performance measurement. Conversion rates provide a clear and quantifiable measure of how well your online store is performing in turning visitors into buyers. This helps in assessing the effectiveness of your website and marketing strategies.
- Financial health. A higher conversion rate directly impacts the revenue and profitability of your eCommerce business. It means more sales from the same amount of traffic, maximizing your return on investment.
- Customer insights. Analyzing conversion rates can offer valuable insights into customer behavior and preferences, helping you understand what works and what doesn’t in your sales funnel.
- Marketing efficiency. Knowing your conversion rate helps in evaluating the effectiveness of your marketing campaigns.
- Competitive edge. By optimizing for higher conversion rates, you can gain a competitive advantage in the market. It enables you to make the most of your traffic and stand out among competitors.
- Resource optimization. Understanding your conversion rates can lead to better resource allocation, ensuring that you’re investing in areas of your website and marketing efforts that drive the most sales.
- Improved customer experience. Working on improving your conversion rate often involves enhancing the overall user experience of eCommerce websites, which can lead to higher customer satisfaction and loyalty.
- Reduced customer acquisition costs. By increasing the number of conversions from your existing traffic, you lower the cost of acquiring new customers, making your business more sustainable in the long run.
- Feedback loop for improvement. Conversion rates can also signal how well your products meet market demand. Low conversion rates might indicate a need to improve your product offerings or adjust pricing.
- Goal setting and strategy development. Knowing your conversion rate is essential for setting realistic business goals and developing strategies to achieve them. It provides a benchmark for growth and success.
However, amidst the fierce competition in the eCommerce sector, maintaining a high conversion rate presents a formidable challenge. It demands continuous innovation and adaptation to changing consumer preferences and technological advancements.
The average eCommerce conversion rate in 2024
As we progress through 2024, understanding the prevailing average eCommerce conversion rate becomes increasingly important for retailers looking to benchmark their performance. While the exact figure may vary across different studies or reports, online merchants must contextualize their own conversion rates within the broader industry landscape.
Recent statistics suggest that the average eCommerce conversion rate is around 1.72%. Therefore, a good eCommerce conversion rate should be anything above that.
But while knowing the standard is a good start, you still need to check out specific industries’ standards. So, here’s the most recent breakdown of different industries’ eCommerce conversion rates:
- Food and beverage – 6.49%
- Beauty and personal care – 4.95%
- Consumer goods – 4.19%
- Multi-brand retail – 4.04%
- Fashion and apparel – 3.31%
- Pet care – 3.30%
- Luxury and jewelry – 1.08%
- Home and furniture – 0.89%
Observing this average’s evolution over time can reveal emerging trends and shifts in consumer behavior. Moreover, considering industry-specific conversion rates can highlight the unique challenges and opportunities in various sectors, allowing a customized strategy to fit whatever industry you’re in. Use these insights to set up proper eCommerce conversion rate benchmarks for your business.
Factors influencing conversion rates in 2024
The landscape of eCommerce is ever-evolving, and as we find ourselves in 2024, several key factors are shaping conversion rates more than ever before, each playing a critical role in how effectively you can turn site visitors into customers. Here’s a closer look at the factors impacting conversion rates this year:
Mobile shopping prevalence
Mobile shopping has become a key method people use to buy things because almost everyone now uses smartphones. In fact, nearly 4.9 billion people use social media across worldwide. If your online store isn’t easy to use on a phone, you might lose a lot of sales.
Making your website mobile-friendly means it should work well and look good on phones, load pages fast, and make shopping and checking out easy for mobile users. Since a lot of web searches and shopping decisions start on mobile devices, and even on social media, having a site that works well on mobile isn’t just nice to have—it’s essential. This helps you attract more visitors and turn them into buyers, boosting your sales.
AI-driven personalization
AI-driven personalization in eCommerce is about using artificial intelligence to tailor the online shopping experience for each individual user. Unlike a one-size-fits-all approach, this technology allows online stores to show shoppers products, offers, and content that match their interests, behaviors, and past interactions with the site.
It works by collecting data about what you do on a website, like what you look at and buy. Then, smart AI algorithms analyze this information to figure out your likes and dislikes. Using this analysis, the website can then customize your shopping experience in real time, showing you product recommendations, content, and deals that are likely up your alley.
This kind of personal touch can make shopping quicker and more enjoyable, often leading you to buy more because everything feels tailored to you, boosting customer loyalty in the process. However, this technology must be handled carefully to respect privacy and security, ensuring it keeps learning without getting too intrusive.
Changing consumer behaviors
The world has seen a lot of changes lately, especially due to the global pandemic, and this has really switched up how people shop and what they expect from the brands they buy from.
They’re not just hunting for the lowest prices; they’re after the best bang for their buck, prioritizing both quality and cost.
They crave an effortless shopping experience, from speedy website performance to easy navigation and quick purchases.
Customers value transparency when it comes to their purchases. They want to know the origin, production process, and the brand’s social and environmental impact. Sustainability isn’t just a nice-to-have; it’s increasingly a deciding factor, with more consumers willing to spend a bit extra on products that are kind to the planet.
Retailers who get this, who can communicate their value, ease, honesty, and green credentials, are the ones who’ll thrive. Adapting to these preferences isn’t just good practice; it’s essential for building trust and loyalty, ultimately driving sales.
Enhanced user experience (UX) design
UX design refers to the process of creating products (like websites) that provide meaningful and relevant experiences for users. This involves the design of the entire process of acquiring and integrating the product, including aspects of branding, design, usability, and function.
For eCommerce sites, good UX design means making your website as user-friendly as possible. When shoppers find your site easy and pleasant to use, they’re more likely to stay, browse, and buy. On the other hand, if a customer gets frustrated or confused on your website, they’ll likely leave without making a purchase.
Businesses that invest in UX design see a return in the form of increased conversion rates and a competitive edge in the market.
Social proof and reviews
Social proof refers to the influence that the actions and opinions of others have on our own behavior. In eCommerce, this often means customer reviews, ratings, and user-generated content like photos and videos of customers using the product.
Before clicking the “buy” button, shoppers want to know that others have bought the product before and had a good experience. Reviews and ratings offer a peek into what it’s like to own and use the product, beyond what the seller says. It’s about trust—seeing positive feedback from other customers can make a new shopper feel more confident in their decision to purchase when they can’t see or touch the product in person. This can significantly reduce the uncertainty that comes with online shopping.
It’s a good idea to add a section for customer reviews and ratings on product pages. You can also encourage satisfied customers to share their experiences and even photos or videos to add authenticity.
Interestingly, negative reviews can be beneficial. They add credibility to your product—no product is perfect, and shoppers know this. What’s important is how you respond to negative feedback. Addressing concerns and offering solutions can turn a negative review into a positive showcase of your customer service.
Payment options and security
Everyone has their own preferred method of payment, whether it’s through credit cards, PayPal, digital wallets like Apple Pay, or even newer options like cryptocurrency. Offering a broad range of payment methods caters to the preferences of a wider audience, making it easier for them to buy from you.
But with all these digital transactions, the risk of data breaches and fraud is a constant worry for shoppers. They want to know that their personal and payment information is safe every time they make a purchase. Ensuring your website is secure isn’t just about protecting your customers; it’s also about protecting your reputation.
Displaying security badges, using SSL certificates for your site, and being transparent about your privacy policies can make a big difference. These signals tell your customers that you take their security seriously, which can make them feel more comfortable making a purchase.
When customers reach the checkout and see their preferred payment method available, along with visible signs that their information will be secure, they’re more likely to complete their purchase. On the flip side, if they don’t see their preferred payment option or have doubts about the site’s security, they might abandon their cart.
Content and education
Imagine you’re considering buying a new gadget, but you’re not quite sure how it works or if it’s the best choice for you. This is where good content comes in. Detailed articles, how-to guides, and comparison videos can give you the insights you need to make an informed decision.
Shoppers today crave genuine, honest information. They can tell when they’re being sold fluff and prefer content that feels real and trustworthy. When a business provides clear, factual content, it builds a relationship of trust with potential customers and nudges them toward making a purchase. Plus, content that ranks well in search engines can draw in potential customers who are looking for information, introducing them to your products in a helpful and non-pushy way.
The key is to start simple. Identify the common questions or concerns your customers have and create content that addresses them. This could be a blog post explaining the benefits of your product, a video tutorial on how to use it, or a comparison guide that helps customers choose the right model for their needs.
Shipping policies and costs
Shoppers today expect not just fast and affordable shipping but also transparency about those costs and timelines before they hit the “buy” button.
You can offer free shipping to sway a customer’s decision to purchase from your site. But it’s not always feasible for every business, so you can try to find ways to minimize shipping costs , which can help keep you competitive. Fast shipping times can also be a major selling point, making your store more appealing compared to competitors with slower options.
State your shipping costs, delivery times, and return policies right from the start to prevent surprises at checkout and reduce the likelihood of cart abandonment. Transparency builds trust, and trust which leads to more sales.
Finally, a straightforward and hassle-free return policy makes customers more comfortable making a purchase, especially for products they can’t see or try in person. Knowing they can return an item easily if it doesn’t meet their expectations reduces the perceived risk of buying online.
By addressing the common concerns and expectations customers have about shipping, you can improve the overall shopping experience. This doesn’t just mean more completed purchases but also happier customers who are likely to come back or recommend your store to others.
Emerging technologies
Emerging technologies are reshaping the online shopping landscape, offering new ways for customers to interact with products and making transactions safer and more transparent. Here’s a guide to these technologies and how they’re changing the game for eCommerce:
- Augmented reality (AR). Imagine trying on glasses or seeing how a new sofa looks in your living room without leaving home. AR allows customers to do just that, offering virtual try-ons and previews of products in real environments. This technology helps bridge the gap between digital and physical shopping experiences, increasing confidence in purchase decisions.
- Voice commerce. With smart speakers and voice assistants becoming household staples, shopping through voice commands is on the rise. Customers can now search for products, compare prices, and make purchases simply by speaking. This convenience opens up a new, hands-free avenue for shopping, appealing to tech-savvy consumers looking for an effortless experience.
- Blockchain. Blockchain technology is making its way into eCommerce, especially in payment processing and supply chain transparency. It offers a secure way to conduct transactions and can provide customers with detailed information about the origin and journey of their products, appealing to those concerned with authenticity and ethical sourcing.
For retailers, staying ahead of the curve by adopting these technologies can significantly enhance the customer experience, making shopping more interactive, secure, and convenient. Integrating AR, voice commerce, and blockchain into eCommerce platforms not only sets a brand apart but also meets the growing expectations of tech-forward consumers.
10 successful strategies to improve your conversion rate
eCommerce conversion rate optimization involves a multi-faceted approach, encompassing everything from user experience optimizations to personalized marketing efforts. To get you started right away, we’ve compiled key conversion rate optimization strategies you need to consider for success.
1. Simplify the user experience (UX)
Making your website easy and pleasant to use is key to getting more sales. This means having a site that’s simple to navigate, loads quickly, and looks great on phones. When everything on your site is clear and works smoothly, people can find what they want without any hassle, making them much more likely to buy your products.
2. Enhance product pages
To make your product pages stand out, use top-notch photos and videos that show off your products in the best light. Add rich, engaging descriptions that tell the story of each product, highlighting key features and benefits. Don’t forget to include customer reviews to build credibility and help shoppers feel confident in their purchasing decisions. These elements together can make your product pages much more appealing and persuasive, leading to higher sales.
3. Personalize the shopping experience
Using your customers’ data to understand what each shopper likes can suggest products they’re more likely to buy and send marketing messages that speak directly to their interests. This personalized touch makes shopping more enjoyable for your customers while also boosting the chances they’ll find something they want to purchase.
4. Optimize the checkout process
Making the checkout process easier by cutting down on unnecessary steps, offering a variety of payment methods, and being upfront about all costs can significantly reduce the chances of people leaving their carts behind. This streamlined approach not only makes buying smoother and quicker but also increases the likelihood of completing sales, leading to better conversion rates.
5. Utilize A/B testing
A/B tests compare two versions of your site to see which performs better. This helps you figure out exactly what your customers prefer, whether it’s a certain layout, type of content, or design element. This method lets you make changes based on real data, so you’re always improving your site in ways that resonate with your audience.
6. Implement strong calls-to-action (CTAs)
Eye-catching and persuasive calls-to-action (CTAs) can inspire urgency. Encourage customers to act quickly, whether making a purchase, signing up for a newsletter, or downloading a guide. Well-crafted CTAs can significantly increase the chances that visitors to your site will take the steps you want them to, leading to higher conversion rates.
7. Offer exceptional customer support
Top-notch customer support, such as instant help through live chat and detailed FAQs and help sections, can quickly solve any issues or questions customers might have as they shop. This immediate support makes the shopping experience smoother and more enjoyable and reassures customers, so they’re more likely to complete their purchases.
8. Leverage social media
People around the globe spend about 151 minutes on social media daily. So, there’s a big chance your target audience is there. You can connect with them to boost your online store’s visibility and trustworthiness. By interacting with customers, sharing their content, and showcasing real experiences with your products, you not only increase engagement but also attract more visitors to your site, potentially leading to higher eCommerce sales.
9. Keep an eye on analytics
Regular website analytics offers insights into user behavior and identifies areas for improvement, allowing for strategic adjustments that refine the customer journey and improve conversion rates, ultimately boosting your conversion rates. You can start with Google Analytics if you’re not familiar with other web analytics tools.
10. Educate your audience
Teach your audience about what makes your products special and how they meet their needs. This approach not only answers their questions but also highlights the value of what you’re offering, helping to convince them that your products are the right choice. You can start with engaging content and detailed product demos. This educational strategy can build trust and deepen the relationship with your customers, encouraging them to choose your brand.
Optimize your eCommerce conversion rates
Optimizing eCommerce conversion rates is indispensable for achieving and sustaining success in the online marketplace. With its evolving consumer expectations and technological advancements, 2024 presents both challenges and opportunities for online retailers.
Keep in mind, that every click could lead to a sale. Your goal is to make every visit worthwhile, turn casual visitors into devoted buyers, and make your online business a success story.
With Web.com’s suite of online marketing tools and constant observation of your data for continuous improvement, you can outperform average conversion rates and gain a competitive edge in the thriving digital economy.
