SEO Glossary > Conversion rate

Conversion rate

The conversion rate is a metric that focuses on the effectiveness of a landing page or advertising campaign. The conversion rate is derived by dividing the number of conversions by the total number of people who visited a landing page or in PPC, dividing the number of conversions by the number of people who clicked on an ad that promoted the landing page.

What is a good eCommerce conversion rate?

On average, eCommerce conversion rates are between 1% - 2%. Businesses generally aim for a 2%+ conversion rate.

How do you calculate Conversion Rate?

A conversion rate can be calculated by dividing the number of conversions in any given time frame by the total number of people who visited the landing page and multiply by 100.

For example, if a site gets 100 conversions and 1000 visitors in one month, then the conversion rate for the month is 10%. (100/1000*100=10%)

How do you increase eCommerce conversion rates?

  • In order to increase eCommerce conversion rates, advertisers should display trust signals. Customers want to feel secure that the business is legitimate and that security measures are in place. This can be done by installing SSL at checkout. Security badges such as GeoTrust or McAfee should be displayed.
  • If the site is offering brand name products that other online stores offer, the products must be competitively priced.
  • Offer free shipping. A result of Amazon's success is free shipping has become a basic expectation.
  • Use high-quality images or videos in order to visualize the product.
  • Offer limited-time discounts and offers.
  • A complicated, difficult checkout experience is likely to result in lost sales. Therefore the store's checkout must be simple and easy. This includes having a checkout form that is easy to understand.
  • The site should be structured in a clear and logical way so that customers can easily navigate and find what they are looking for. Menus should be structured so that customers can find what they are looking for in as few clicks as possible. A search bar should be included at the top of the site to help customers find products easily.

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