What is Shopify Conversion Rate?
A conversion rate refers to the percentage of visitors to a website who complete a desired action, known as a conversion. This rate is represented as a percentage and can be calculated using a straightforward formula:
Conversion rate = number of specific actions taken in a period of time / total number of visits to your site in the same period of time
For example, if your goal is to get newsletter sign-ups and you have 1,000 visitors and 100 sign-ups in a given time, your conversion rate would be 100 / 1,000 = 0.10, or 10%.
A website’s ecommerce conversion rate can be tracked using a website analytics tool. Google Analytics is the most popular choice and looks at data specific to the website. There are also several other methods to measure this metric. Here are some other common options.
- Segment: This collects data from various platforms, like Facebook and Instagram Ads.
- Heap: Similar to Segment, Heap gathers data from different sources and offers more options for customizing event tracking compared to Google Analytics.
- Triple Whale: This analytics tool monitors every interaction a customer has with a brand, covering social media and search activities.
You can choose the right analytics tool depending on a combination of your budget, acquisition channels, and ad spend level.
Average Shopify Conversion Rate
Average Shopify conversion rates are typically around 1.5-2%. However, using these general rates alone may not be the best approach.
Many factors outside your control can affect your conversion rate. For example, if you sell high-end boutique clothing, your conversion rate may be lower compared to someone offering inexpensive, trendy items. However, it doesn’t mean that your performance is lower than that store.
The point is: while industry benchmarks can provide some guidance, it’s important to view them in relation to your specific store. Averages from large groups can only give a limited view of your performance compared to others.
What is a Good Conversion Rate?
A good conversion rate can vary, but a study by LittleData provides useful insights on how you compare to other Shopify stores.
The research looked at more than 3,000 Shopify shops and found that the average conversion rate was 1.3%. It also revealed that stores with conversion rates over 3.2% were in the top 20%.
From this, we can say that a conversion rate above 1.3% is good, while a rate over 3% is excellent.
What is a Bad Conversion Rate?
Littledata’s research indicates that the typical conversion rate is 1.3%. Therefore, a rate lower than 1.3% is seen as below average, placing those stores in the lower half regarding purchase conversions.
However, being below average isn’t bad maybe. The study found that stores with a conversion rate under 0.2% fall into the bottom, which is a pretty bad conversion rate.
How to improve your Shopify Conversion Rate
Develop a value proposition
Possessing your own value proposition, or unique selling proposition (USP), is crucial for improving your conversion rate. If you have a fantastic, unique product and messaging that meets customer needs , your visitors will tolerate some imperfections to get your products.
Reduce friction
Friction is anything that makes the user experience difficult or confusing. This can range from a complicated checkout process to unclear shipping costs. Even small amounts of friction can significantly lower a site’s conversion rate.
Reduce buyer’s anxiety
This is particularly important for newer sites and brands. Since customers can’t physically examine your product before buying, they need extra reassurance about its quality. You can ease their concerns with clear return policies, customer reviews, or engaging AR shopping experiences.
Reduce cart abandonment
Reduce cart abandonment by streamlining the checkout process, being upfront about costs, and allowing guest checkouts. Implement strategies like automated emails or remarketing ads to remind customers to finish their purchases.
Optimize for mobile
Ensure your site is mobile-friendly, featuring easy navigation, quick load times, and clear call-to-action buttons (CTAs). Simplify the checkout process with mobile payment options to enhance customer experience and increase conversions.
To optimize your site for mobile, you should use some SEO apps like SearchPie, Booster SEO, Tiny SEO,…
For example, with SearchPie for Shopify merchants, you can download from Shopify App Store.
After installing it, all you need to do is to access Site Speed Feature to adjust your visibility, speed for your page.
SearchPie provides their merchants with all features to customize your AMP pages that would be a leverage for your site speed.
Similarly, you can also enhance your AMP status with Booster SEO by customizing AMP design, enhancing Page Speed Tools.
Track the right KPIs
Identify and track key performance indicators that match your goals. Consider metrics like conversion rate, average order value, cart abandonment rate, and customer lifetime value. Proper tracking helps you assess your business’s performance and informs strategic choices.
Investing in ecommerce conversion rate optimization
Tracking your conversion rates is simple, but not easy. To measure your Shopify conversion rate, you just divide the number of sessions during a specific time. However, it can be challenging for ecommerce sites to avoid common mistakes, regularly review their performance, and enhance their conversion rate over time.
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