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What Is A Conversion Rate?

In ecommerce, a conversion rate is a form of contextual data used to demonstrate the percentage of website visitors who purchase a product. You can calculate your website’s conversion rate using this formula:
Conversion rate = number of website visitors/number of purchases *100%

Using tools such as Google Analytics, you can track your goal conversion rate. Goal conversion rates can be based on a variety of goals specific to your online store, such as “purchases completed” or “newsletter sign-ups”. Tracking your conversion rate can give you valuable insights into customer behaviour on your website, and can allow you to make suitable amends to features on your website so that you can make the most of your traffic.


What Is A Good Conversion Rate?

The average conversion rate of ecommerce stores globally is 2.58%. However, a good conversion rate is unique to your business and is a highly contextual figure which can depend largely on a number of factors including: 

  • Your industry

  • Product type

  • Product cost or average order value

  • Traffic source

  • Device (mobile, tablet or PC)

  • Platform (Windows, Mac, iOS, Android, etc.)

  • Location

For instance, if a company sells high-end electronics it’s not going to have the same conversion rate as one selling cheap t-shirts. Therefore when analysing your conversion rate, is it important to consider all of these contributing factors

Industry benchmarks aren’t always an accurate comparison guide. So in order to work out the best conversion rate for you, you need a baseline. What is your current conversion rate? And what conversion rate do you want to achieve in the next month or the next six-twelve months?


What Contributes To A Good Conversion Rate?

The conversion rate is useful because it tells you how successful your website is at guiding visitors into and through the sales funnel. A high conversion rate shows that your website is convincing users to become leads or customers, while a low rate indicates that you may need to shift tactics. So what contributes to a good conversion rate? We’ve outlined the main ones below: 

  • Price 
    It’s important to look at your pricing when thinking about your conversion rates. Are you competitively priced? If you are selling branded products which other companies offer then you will need to price your products at or below the average price. Always adjust your prices frequently to see what works well with your customers and what doesn’t. Remember your marketing and imagery will heavily influence the price someone is willing to pay.

  • Reputation 
    Ultimately, a good reputation will help boost sales. If you experience low conversion rates, then one reason could be that visitors don’t trust you. In order to improve your reputation and / or trust it’s important you address the following: 

  1. Avoid spammy marketing.

  2. Use social proof, including real customer reviews.

  3. Show your human side by putting your address and contact details on the site and perhaps some team photos. 

  4. Include trust seals so shoppers know their credit card details are secure.

  • Product Reviews 
    As mentioned above one of the important ways to increase ecommerce conversions is to use customer reviews or testimonials at key points in the decision-making process. This helps to instil trust and confidence in you, especially if you place them throughout the whole customer journey.

  • Free shipping
    According to the Baymard Institute, around 61% of people abandon shopping carts because of high costs, including shipping costs. Offering free shipping over a certain basket value threshold can encourage customers to complete a purchase on your website. Strategies such as free shipping thresholds can often mean customers feel as though they are getting a better deal by shopping on your website.

  • Live Chat
    If a customer is on your site and needs help, it’s important to be there for them as soon as possible. Real-time help works wonders, and more often, website visitors choose live chats over phone or email.  Using on-site live chats on all pages of your website helps to reduce the chance that they may navigate away from a key page, or leave your site altogether. Live chats can help to increase the chances of a visitor converting if an issue is sorted efficiently or a question about a product or service is answered.

  • Easy checkout 
    Guest checkouts help keep all visitors to your site stay engaged especially if they are first-time customers. It can often cause friction for the user if there is that additional step of creating an account before purchase. Single-step checkouts are also one of the easiest ways for existing customers to finalise their purchase as their details will have been saved previously. With this all in mind, it’s important to also offer multiple payment options especially if you have a global customer base. This helps to ensure their needs and expectations are met. 

    1. Improved Call To Actions (CTA)

    2. More often than not, generic CTAs like “Sign up” and “Start trial” won’t give you the best conversion rates.  Therefore it’s worth brainstorming alternatives which will boost sales. For example, if you are offering a free trial of software, you may use the following offers:

    3. “Try it today”

    4. “Start your free trial now”

    5. “Get a free 14-day trial”

    6. “Start a free (no credit card required) trial

  • Focus on top-performing converting channels 
    Analyse your analytics report to see where most of your traffic comes from. If your top channel is social and you have very little direct traffic, it might be a good idea to divert marketing resources to PPC or invest in an email campaign. Email yields better conversion rates than social and search so it might be worth investing in an email marketing strategy to boost overall conversions.

  • Website speed
    Customers typically expect a website to load in just a few seconds and often expect websites to load faster on mobile devices. Having a fast page load speed can help to increase your website’s traffic as sites with faster page speeds are more likely to rank higher in search engine results, providing you with a larger potential customer base.

  • Website personalisation
    Collecting data on your website visitors can allow you to create a personalised shopping experience for them. By tailoring product suggestions and page displays, you can build stronger relationships with customers which can encourage repeat purchases and higher conversions.

  • Checkout optimisation
    Providing a quick and simple checkout process for your website visitors can reduce the likelihood of users abandoning their purchase due to unexpected costs, lengthy forms or surprise fees, therefore increasing your conversion rate. Also, consider using cart abandonment software on your website that allows you to send follow-up emails to customers who have left items in their basket.



Understanding your online store’s conversion rate can be a useful tool for analysing and improving your business performance. Conversion rates provide useful insights into consumer behaviour and can also be a good tool for tracking the effectiveness of any website changes. As long as the amends you are making are increasing your conversions, even slightly, then your ecommerce store is improving.

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