Many business owners want to understand their revenue potential as shown by their site’s conversion rate. Conversion rate for an eCommerce site is typically the number of purchases divided by the traffic. But that raw number may not be giving you the full eCommerce story. You can look at sites like Fireclick.com to see what the average is for your sector but all those numbers don’t really tell the story of your eCommerce site and what they mean for your business.
Factors to Consider
When learning about your eCommerce business, it’s important to start with a baseline so that you can know when things are going well or why it has become such a challenge. A few factors to consider are the kinds of products you sell and your inventory levels. Your price and sales strategies, your price points, and your discounting strategy need to be geared toward maximizing profit and building repeat business. Promoting your products is a requirement because the better your targeting strategy, the better the chance you will catch customers when their wallets are open.
Other factors that determine eCommerce conversion rates include usability. There is a big push towards creating a more positive customer experience because it’s been linked to an increase in sales. If your site is easy to search and navigate, then building a good customer base is only a matter of time. With the increase in data breaches, customers need to know that merchants are taking their security seriously and whether your site conveys that or not can have a big impact on your visitor stats. Content is meant to inform and engage customers. If your imagery is unclear, or if your content is dry or unclear, that can also have a negative impact on eCommerce profits.
Ways to Increase Conversion Rates
Good conversion rates are a byproduct of little things done well over time. As an eCommerce business owner, you know can learn what works and what doesn’t by implementing a few key strategies:
- Product Videos. While this may not be for everyone, the fact is static photos provide a limited touch/feel experience for customers. Integrating videos can help you engage the customer more and potentially increase conversions.
- Shipping Charges. Done right, free shipping can be a conversion boom but how you do it can make all the difference. Some stores use a free shipping strategy with a price threshold while others charge free shipping on everything. Testing out the free shipping strategy that can work best for your profits will definitely help the bottom line
- Optimizing Checkout. Shopping cart abandonment, where customers decide not to purchase products selected, is almost 70 percent, according to research from the Baymard Institute, an independent web research body. The reasons vary, but the one thing that can help eCommerce business owners get better conversions is figuring out why their customers do it. Test and try different tactics until you see an improvement and stick with it.
Needless to say that the numbers of ways conversion rates can be impacted are numerous. The best way to improve your site is to keep track results against your individual baseline and work to improve from there.