What is Conversion Rate?

In electronic commerce, conversion rate is the proportion of visitors to a website who take action to go beyond a casual content view or website visit, as a result of subtle or direct requests from marketers, advertisers, and content creators.

The Conversion Formula

For an online store, the conversion rate is calculated as:

Example: If you had 50 sales from 2,000 visitors:
(50 / 2000) x 100 = 2.5%

What is a "Good" Conversion Rate?

Average e-commerce conversion rates typically hover between 1% and 3%. However, this varies wildly by industry, traffic source, and device (desktop vs. mobile).

Conversion Rate Optimization (CRO)

CRO is the process of increasing the percentage of visitors who perform a desired action. Common tactics include:

• Improving Page Speed: Faster sites sell more.
• High-Quality Images: Customers need to see what they are buying clearly.
• Trust Signals: Displaying reviews, security badges, and clear return policies.
• Simplified Checkout: Reducing the number of steps to complete a purchase.
• Guest Checkout: Not forcing users to create an account.