What defines an e-commerce good conversion rate

What is a ‘good’ ecommerce conversion rate? Does yours meet the mark, and, even more importantly, are you aware of your current rate?

Unlocking the secret to a stellar e-commerce conversion rate is like discovering the golden ticket in online business. Whether you’re a seasoned e-commerce entrepreneur or just dipping your toes into the digital marketplace, understanding what constitutes a good conversion rate is the key to unlocking your business’s full potential. 

What exactly an e-commerce conversion rate is?  

An e-commerce conversion rate is defined as the percentage of website visitors who complete a purchase. This is calculated by dividing the total number of conversions, in this case, completed acquisitions, by the total number of visitors and multiplying that figure by 100. If your online store gets 7,000 visitors and 80 conversions for a set period, your store’s conversion rate is 1,1%.

What is a Good E-commerce Conversion Rate?

On average, e-commerce conversion rates hover around 2.5-3%. With optimal practices, you can expect to make a sale to around 2-3% of visitors. However, it’s worth noting that this figure can vary depending on factors such as industry, region, and the specific store’s strategies.

A conversion rate of 3% or higher is generally considered a good baseline target for e-commerce businesses to aim for. Achieving this goal can indicate that a store’s sales tactics are effective and that the overall user experience is conducive to making purchases. Falling short of this benchmark could be indicative of potential areas for improvement.

Metrics to Help Measure E-commerce Conversions

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Apart from the effectiveness of your store’s conversion performance, a handful of other metrics hold relevance in the context of conversion analysis. Steering these metrics in a favourable direction often translates into an improved overall store conversion rate. 

Bounce Rate

Bounce Rate is the percentage of visitors who land on your website and do nothing on the page they entered. This means they don’t click on a menu item, a ‘read more’ link, or any other interactive elements on the page. Instead, they either close the window, type a new URL or sit idle. 

A high bounce rate indicates that your site’s entrance pages must resonate with visitors. It points to the possibility that visitors need help finding what they were hoping for and, as such, aren’t enticed to delve deeper into your website. However, it’s worth noting that a high bounce rate is a good thing. For instance, if a visitor lands on your page, finds the information they were seeking, and leaves, it would still be considered a bounce even though the visit was successful from the user’s perspective.

Exit Rate

Exit rate refers to the percentage of users who leave a website after viewing any page, not just the landing page. This is an essential distinction from bounce rate, which only considers visitors who leave after viewing the landing page. The exit rate is calculated by dividing the number of exits from a page by the total number of views that page has. This metric can provide valuable insights into the last page a visitor viewed before leaving your website, giving you an idea of where you may lose potential conversions.

A high exit rate on a specific page may indicate that the page is not meeting visitors’ expectations or lacks compelling calls to action. Pages with a high exit rate can be a red flag that something on the page is causing visitors to leave, such as slow load times, poor content, or complex navigation.

Click-through rate (CTR)

It refers to the percentage of individuals viewing a webpage, email, or ad who click on a specific link. This metric clearly indicates how well your keywords and ads are performing. A high CTR signifies that users find your ads helpful and relevant.

Average Session Duration

Average Session Duration refers to the average amount of time users spend on a website during a single session. It’s a crucial metric in e-commerce as it provides insights into user behaviour and engagement on the website. It measures the time between a user’s first interaction with your site (such as clicking on a link or opening a page) and their last interaction during the same visit.   

A longer average session duration often suggests that users are more engaged with the website, which could increase the likelihood of conversion. In contrast, a high bounce rate, which signifies that users leave the site quickly after arriving, can result in a lower average session duration and conversion rate. A strong average session duration metric is between 2-4 minutes. [1]

Average Page Depth (Pages Per Session)

Average Page Depth measures the average number of pages a visitor views during a single session. A high average page depth indicates that the visitors thoroughly engage with your website’s content, explore various pages, and show interest in your products. The average page depth for e-commerce websites is around five pages per session. [2]

The average page depth can directly affect your e-commerce site’s conversion rate. When visitors explore more of your site, they are more likely to purchase. The more time and engagement a visitor invests in an area, the more likely they are to convert. However, a paradox could arise when a high average page depth aligns with a low conversion rate. This can signal underlying issues within the conversion funnel, such as unclear navigation or a lack of compelling calls to action.

The Importance of a Good Conversion Rate

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Simply put, it directly contributes to your profitability. 

A higher conversion rate signifies that a more significant percentage of your website’s visitors are completing a desired action – purchasing a product, signing up for a newsletter, or any other goal of your e-commerce platform. This indicatesthat your marketing and sales strategies are functioning effectively. 

Regarding business growth, a high conversion rate is a positive sign that your e-commerce store successfully meetscustomer needs and expectations. This not only helps in retaining existing customers but also attracts new ones. 

Improving your e-commerce conversion rate is also a cost-effective strategy. Instead of investing heavily in attracting new visitors, focusing on converting existing visitors into customers can save marketing costs. A study by Econsultancy revealed that only about 22% of businesses are satisfied with their conversion rates. Hence, there’s always room for improvement, which can yield better results. [3]

A good conversion rate often translates into high customer satisfaction. If a significant number of your site’s visitors convert, it indicates that your e-commerce store can provide a satisfactory shopping experience. This is crucial in building long-term customer relationships and loyalty.

Strategies to Improve Conversion Rate

Improving your e-commerce conversion rate is a multifaceted process that requires a strategic approach. 

One of the first key strategies involves enhancing product descriptions. The product descriptions on your e-commerce site are a pivotal factor in influencing a potential customer’s decision to buy. According to a study by Salsify, 87% of online shoppers rate product content extremely or very important when deciding to buy. Therefore, the description should be detailed and engaging, highlighting the unique features and benefits of the product. It should also answer any potential questions or concerns a customer might have. Incorporating high-quality images and videos can also help customers understand the product better, increasing conversion chances. [4]

Simplifying the checkout process is another critical strategy for improving conversion rates. Approximately 69% of all e-commerce visitors abandon their shopping carts. A complex or lengthy checkout process is one of the main reasons for this high abandonment rate. Therefore, it’s crucial to streamline the checkout process, reduce the number of steps required to complete a purchase, offer guest checkout options, and ensure the process is seamless across all devices. [5]

Providing customers with various delivery options at the checkout, including same-day, next-day, lockers, or pick-up and drop-off (PuDo) locations, can be a game-changer for your e-commerce business. This approach caters to the diverse needs and preferences of your customer base and significantly enhances their shopping experience. Happy customers are more likely to become repeat customers and brand advocates, increasing your conversion rate.

Another effective strategy is offering free shipping75% of consumers expect delivery to be free, even on orders under. Hence, offering free shipping can significantly reduce cart abandonment and encourage customers to complete their purchases. If offering free shipping on all orders is not financially viable, consider providing it on orders above a certain amount. [6]

Using retargeting strategies can also help improve your conversion rate. Retargeting is a digital marketing tactic that targets customers who have shown interest in your products but haven’t purchased them. This could include displaying targeted ads to these customers on other websites or sending them personalised emails reminding them of the products they viewed. 

Roughly two-thirds of customers tend to review the return policy before making a purchase. While it’s important not to create unrealistic commitments, it’s essential to streamline and simplify the product return process for customers. Establishing trust through a user-friendly return policy can effectively boost sales and enhance conversion rates. 

At least 79% of smartphone users have purchased online using their mobile device in the last six months. Therefore, mobile optimisation has become more critical than ever. This means ensuring your website is responsive, looks good, and functions well on all devices. Also, the checkout process on mobile should be as streamlined and user-friendly as it is on desktop. [7]

Expected E-commerce Conversion Rate Misconceptions

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In e-commerce, several things that can distort the understanding and application of conversion rates need to be clarified. One common misconception revolves around “sessions” and “users.”  

Often, individuals mistakenly believe that the e-commerce conversion rate is calculated based on the number of users. This misunderstanding can lead to an overestimation of the conversion rate. In actuality, a session refers to a single visit to a website, regardless of the number of times a user visits. Therefore, the conversion rate is calculated by dividing the number of orders by the number of sessions, not users.

Another misconception in e-commerce pertains to the term “overall conversion rate.” This term refers to the percentage of visits that result in any conversion action, whether orders, newsletter subscriptions, presale signups, or add-to carts. However, it is common for people to wrongly equate the overall conversion rate with the ecommerce conversion rate. The e-commerce conversion rate only pertains to orders, not other conversion actions.

Finally, more understanding of the different types of conversion actions. Many erroneously include actions like newsletter subscriptions, presale signups, or cart adds in their e-commerce conversion rate calculations. However, it’s crucial to understand that the e-commerce conversion rate specifically refers to orders

Also, discover: What is ABC Analysis? Benefits of Streamlining Your Inventory Management


80% of shoppers used a mobile phone inside a physical store to either look up product reviews, compare prices or seek out alternative store locations. [8]

In today’s dynamic retail landscape, where online shopping continues to surge and shape the industry, the significance of a well-executed website cannot be overstated. It stands as a linchpin for both immediate and enduring triumph. Elevating e-commerce conversion rates should unequivocally top the priority list for businesses, as they possess the magic to inspire customers to embark on the most pivotal action—acquiring your exceptional products. 


[1] “DashThis.” Dashthis.com, 2023, dashthis.com/kpi-examples/average-session-duration/#:~:text=What%20is%20a%20good%20average,the%20device%20they%20are%20using. Accessed 7 Nov. 2023.
[2] “DashThis.” Dashthis.com, 2023, dashthis.com/kpi-examples/page-depth/#:~:text=What%20is%20a%20good%20page,the%20fewer%20clicks%2C%20the%20better. Accessed 7 Nov. 2023.
[3] Saluja, Akshay. “45 Conversion Rate Optimization Statistics Every Marketer Should Know.” Outgrow, 11 July 2018, outgrow. co/blog/conversion-rate-optimization-stats#:~:text=%239%20Only%20about%2022%20percent,satisfied%20with%20their%20conversion%20rates.&text=This%20dissatisfaction%20is%20partly%20because,varies%20from%20industry%20to%20industry. Accessed 7 Nov. 2023.
[4] Wood, Cara. “How Product Content Drives Conversion [Infographic].” Salsify.com, Salsify, Inc, 20 June 2016, www.salsify.com/blog/cracking-the-consumer-code-how-product-content-drives-conversion-infographic. Accessed 7 Nov. 2023.
[5] namogoodevelop. “69% of Your Customers Abandon Your Cart. What Can You Do?” Namogoo, 14 Sept. 2020, www.namogoo.com/blog/conversion-rate-optimization/69-of-your-customers-abandon-your-cart-what-can-you-do/. Accessed 7 Nov. 2023.
[6] “The Free Delivery Phenomenon: 11 Pros & Cons Every Business Should Consider.” Reviews.io, REVIEWS.io, 18 Sept. 2019, blog.reviews.io/post/free-delivery-phenomenon-should-you-be-offering-it#:~:text=In%20fact%2C%2075%25%20of%20consumers,companies%20which%20offer%20free%20delivery. Accessed 7 Nov. 2023.
[7, 8] Smith, Justin. “Mobile ECommerce Stats in 2023: What Percentage of ECommerce Sales Are on Mobile Devices?” OuterBox Solutions, Inc., 14 July 2021, www.outerboxdesign.com/web-design-articles/mobile-ecommerce-statistics#:~:text=At%20least%2079%25%20of%20smartphone,in%20the%20last%206%20months. Accessed 7 Nov. 2023.