In recent times there is the ongoing debate whether e-commerce conversion rate should be considered as a metric for online campaigns or not. This is mainly because the rates vary between verticals that it does not make sense to compare two different e-commerce stores or platforms. Whatever may be the reason, this metric is not going to disappear soon, and hence CRO for e-commerce will be relevant for the foreseeable future. In this article, we will focus on the different conversion rate statistics that can be used for conversion rate optimization for e-commerce stores or market, read on to know more.
The Calculation Of Ecommerce Website Conversion Rate
For conversion rate optimization the “conversion rate = sessions with transactions/total number of sessions”. Also, note that a session is the visit of an individual to the e-commerce website that often lasts for 30 minutes. Also, if the customer revisits the website within that time, it is still considered as a single session. But, if the customer visits after 30 minutes, then it is considered another session. Moreover, the session is an important metric as it shows the willingness or intent of the visitor to buy. So, it is a better choice than the metric unique visitor which compromises a self-contained shopping event.
The Definition Of Good Conversion Rate
As already stated, the conversion rate varies between different industries, and it does not make sense to compare them. For example, according to a survey, the conversion rate for the clothing industry is 1.41%, while it is 0.58% for agricultural supplies. Because of this, it is better to develop industry-specific e-commerce key performance indicators (KPIs). With this, you can compare the average e-commerce conversion rate across your industry, and do the conversion rate optimization accordingly. Apart from this, the conversion rate also depends on the age demographic or type of customers that an e-commerce store or platform is targeting.
Ecommerce Conversion Rate By Industry
To measure the performance of an e-commerce store, it is better to develop market-specific standards for conversion rates. Listed below are some of the industry-specific conversion rates.
- Arts and crafts – 4.01%
- Electrical and commercial equipment – 2.07%
- Pet care – 2.51%
- Health and wellbeing – 2.02%
- Kitchen and home appliances – 1.61%
- Home accessories and giftware – 1.46%
- Fashion and clothing accessories – 1.41%
- Agricultural supplies – 1.41%
- Cars and motorcycles – 1.36%
- Food and drink – 0.90%
- Baby and childcare – 0.71%
These are the average values of conversion rates for a specific group of products on e-commerce stores or platforms. But there are product specific peak conversion rates, and knowing them will help to have better CRO for e-commerce.