At the end of the day, eCommerce success comes down to your ability to turn passive shoppers into paying customers.
Which is why conversion rate is the metric of all metrics.
This comprehensive resource contains everything you need to learn about conversion rate, benchmark your conversion rate against others in your industry, and gain the strategies you need to increase your own.
If you know all about CVR and are just looking for tips to improve yours, skip ahead to the benchmark data on eCommerce conversion rates, best practice tips, and other resources to help.
Let’s get some eCommerce conversion rate basics out of the way.
Simply put, conversion rate is the percentage of users who take a desired action.
In the eCommerce world, that desired action is obviously having customers purchase a product from your business.
But how do you actually calculate conversion rates? Easy.
Figuring out your conversion rate is the easy part. Finding ways to increase conversions? Now that is a whole other story.
What impacts conversion rate?
There are tons of factors, from design and UX to shipping costs and inventory.
But the biggest variable is trust.
When shoppers want to purchase a product online, they often do some preliminary research to make sure they’re making the right choice.
Because they’re unable to see, touch, and experience the product before handing over their credit card, they research to make sure they don’t get any surprises when the package arrives.
During the buyer journey, consumers turn to product descriptions, customer reviews, pricing comparisons, and more.
But the best way to increase conversion is by doing everything you can to improve buyer trust.
Conversion rates in eCommerce vary by industry because there are certain products that people are more comfortable buying online.
The chart below breaks down the average conversion rate by industry for eCommerce retailers:
Keep in mind that these are massive eCommerce industries, with hundreds of millions of customers across the globe purchasing products from each. So for these industries as a whole, these metrics are actually pretty good.
So the eCommerce conversion rate metrics may be good by industry standards, but there is always room for improvement on these numbers, especially for the weaker industries.
Studies upon studies show that user-generated content (UGC) increases the chance of conversion.
We know UGC is good for increasing eCommerce sales, but we haven’t had the hard data to prove the exact impact of UGC on conversion.
Until now that is…
As a whole, the average conversion rate of visitors who saw UGC is 161% higher than those who didn’t.
People who are researching online eCommerce stores are already interested in a potential purchase.
In order to get that customer over the checkout finish line, utilizing user-generated content is proven to be a conversion goldmine.
The trust that is created between customer and retailer when you display UGC is a metric with incredible benefits.
Take the Health & Beauty industry as an example:
With the eCommerce universe cluttered with thousands of different retailers in this market, customers can find it overwhelming to make a buying decision.
People already tend to feel somewhat untrustworthy towards most eCommerce brands as it is.
UGC can help your company ease those concerns.
A case study of a Health & Beauty retailer conducted by Yotpo is a great example of how user-generated content helps increase eCommerce conversion rates.
Vanity Planet was an early adopter of leveraging social curation.
They ran A/B testing using Yotpo’s user-generated content photo carousel feature. The test was simple. Run two product pages over a week, one with customer photos at the bottom of the product page and one with not.
The results? Well, they were telling to say the least.
By using UGC, they were able to increase their checkout conversion rate by 24%. Customers were drawn towards the trust established when Vanity Planet showcase real-life people endorsing their product.
In a technology-obsessed world, our cellphones may be our most prized possession.
With mobile devices attached to our hips, converting these potential customers into buyers is a big task for eCommerce retailers.
Should mobile users be targeted more heavily than desktop ones? What does the data say? Let’s take a look:
Our data at Yotpo shows that mobile accounts for more than half of all eCommerce traffic. On top of that, 65% of people start their shopping journey through using a smartphone.
Talk about an insane amount of mobile phone traffic! This is a huge target audience that eCommerce businesses should definitely be aware of.
As much traffic as mobile may bring in, desktop/laptop purchases still reign supreme. Our friends at Sidecar concluded that smartphone traffic converts at just roughly half of desktop traffic.
With 37.07% of traffic on Google coming via mobile, it offers a substantial size platform to market your products.
PLA’s work by showing your product at the top of Google, with an image-centric carousel of the product instead of simply text.
The data backs up the power of Google product listing ads. 1.92% of product listing ads created conversion, whereas site-wide mobile conversion rates fall to 1.52%.
They say that if you are the smartest person in the room, you are probably in the wrong room.
Fortunately for us, there are plenty of awesome influencers and bloggers to follow about increasing eCommerce conversion rate.
These eCommerce experts write about the latest and greatest tools and methods to help your business master all things conversion rate. Follow these gurus, and we are certain you will learn as much as we have at Yotpo.
Made up of eCommerce conversion gurus from around the world, the Conversion Rate Experts blog is a great place for true expert advice.
2. Conversion XL:
If you are looking for a site with extensive eCommerce conversion rate data across multiple topics, these are the guys you should be reading.
This site utilizes a ton of info-graphics in their conversion articles, which makes the material super readable.
A blog favorite of ours at Yotpo, KissMetrics covers a wide variety of eCommerce topics on their website. A great place to go for conversion rate and so much more.
These guys have a heavy focus on mobile conversions, making it a must-read for eCommerce retailers.
A landing page force in the eCommerce world, Unbounce consistently puts out awesome content for its loyal readers.
So there you have it.
eCommerce retailers are constantly looking for new resources to boost their conversion rate.
Best practices such as leveraging user-generated content, adding Google PLA’s, and following the top conversion rate experts on the web are all great growth hacks to take eCommerce conversion to an entirely new level for your business.
What are some of your favorite eCommerce conversion growth hacks? Let us know in the comment box below!
Schedule a demo with one of our marketing consultants to learn how Yotpo generates reviews and turns them into sales.
Exclusive data + industry insider secrets.