How to Calculate Your Ecommerce Website Conversion Rate

Conversion rate is a really straight forward way of determining how effective your e-commerce website is at generating sales. Even better, calculating your conversion rate is simple.

The equation for conversion rate is as follows:

(Number of Conversions ÷ Total Visitors) X 100

Generally speaking, you calculate your conversion rate based on monthly results. In practice, if your website made 10 sales in the same month that it received 1000 visitors, then its conversion rate would be 1%. And that’s it. But despite being such a simple equation, you should still pay close attention to your website’s conversion rate as it says a lot about your digital shopfront’s current effectiveness.

There isn’t an industry or global standard for what an “acceptable” conversion rate is. While restaurants and dining spots may enjoy conversion rates as high as 10%, it’s perfectly fine for online jewellery stores to have theirs between 1-3%. Every e-commerce business should still be striving to improve their conversion rate, as there are always tweaks and adjustments that can be made to optimise your customers’ journey.

Why Isn’t My E-commerce Website Converting?

It’s a question that many e-commerce businesses face with their online store. Despite putting in so much effort to build a functioning and eye-catching e-commerce website, your conversion rate may still be falling behind where you would like it to be.

Some common reasons why your e-commerce website may not be converting as highly as it should include:

  • Your website isn’t properly optimised
  • The product pages are poorly designed
  • Your website isn’t targeting the right market (Digital Marketing team sending traffic to wrong pages)
  • The checkout system is difficult to use
  • There is no clear Call to Action (CTA) on any of the product or service pages
  • The layout of the site is confusing and/or off-putting
  • Your website hasn’t been properly designed for mobile users
  • Your previous Magento development team was not up to standard.
  • Your magento hosting is far to slow

As you can see, there are many reasons why your e-commerce website’s conversion rate is lower than it should be. Luckily, One Click Media is here to help. Here are some important steps that you can take towards getting your website traffic to press the “Buy” button more frequently.

Make Sure Your Website is Persuasively Designed

It’s likely you’ve heard about appealing web design before. This boils down to making sure your website is as eye-catching as possible, while not overcramming its pages with too much information that muddles the visitor.

But for e-commerce websites to convert better, you also need to implement persuasive web design. This strain of design is more nuanced and difficult to get right, but is essential for users to understand exactly where they need to go in order to make and complete a purchase.

A website that has been persuasively designed will compose the site in a way that immediately draws the eye towards the most important information or the next step in the purchasing journey. Even if a certain page has multiple buttons linking to multiple other pages, your site should still be designed in a way that makes it obvious where the user should go next.

Persuasive web design can be achieved through highlighting a CTA button, a line of persuasive copy, or an eye-catching image showcasing the product or service. Your user should never be confused about where they are supposed to go next whenever they click on any page of your e-commerce web design. By incorporating persuasive web design techniques, you will be guiding your users down a funnel that leads them to a completed purchase order for them, and an improved conversion rate for you.

Our web development team build all our sites with ecommerce website conversion rate in there minds. At the end of the day a high converting website is what we are all looking for regardless of how it looks.

Incorporate Chat Software

There is nothing more frustrating than visiting a website and not being able to find an answer to a question. Confused and frustrated customers often won’t think twice about leaving your website and going somewhere else if they can’t find the answer they are looking for.

One solution to this problem is writing a list of FAQs on your various product/service pages that provide detailed answers to common questions your visitors may have. However, FAQs are always going to be limited to only addressing the questions they explicitly set out to answer, and there is no way you can write a response to every possible question that your visitors may have.

This is why you should install live chat software or chat bots to your e-commerce website. Both options allow your customers to ask more bespoke questions and ensure that they always have an avenue to submit a query before their frustration takes them away from your site.

Live chat software allows your customers to speak directly to another human, allowing for an organic conversation to guide the customer towards the solution they have been seeking. However, live chat software is incredibly resource and time heavy for your team, and may not be possible if you run a smaller business.

Chatbots are a great alternative in such cases. They lack the human touch that live chat software offers, but are available 24/7, can still provide a diverse range of responses, and can always pass on complex questions to members of your team.

Keep it Simple - Ecommerce Website Conversion Rate Tips

Your e-commerce website should be designed with the same principles as any real-life store. It should be simple to navigate and avoid unnecessary clutter. If you were to walk into a shopfront with its items thrown around everywhere and no obvious path to take, you are likely to just turn around and find what you were looking for elsewhere.

The same goes for e-commerce websites. If a visitor clicks on your website and is immediately put off by too many things going on at once, they won’t be sticking around for long. Some common web design mistakes that can be confronting for potential customers include:  (These will all decrease your ecommerce website conversion rate)

  • Images, text, and other design features strewn around everywhere with no discernible order or composition for the eye to follow
  • Blurry images
  • Text that is either too large or too small
  • Unnecessarily stylistic typeface
  • Colours that don’t complement each other or which make text difficult to read

Instead, keep the layout of your website simple and easy to move around, and your visitors will reward your design choices by following through with your desired pathway for them. Your conversion rate will improve as your visitors will be able to find your products easier and won’t be turned off by an unattractive website.

Enabling Shopping Through Social Media

There is a good chance your e-commerce brand has some kind of presence on social media – whether that is on Facebook, Instagram, Twitter, or LinkedIn. Social media marketing is a great way to build a more meaningful connection with your audience, but it can also be used as another avenue to promote your products and drive sales.

It’s one thing to create an organic presence thought search engine optimisation for your brand on social media platforms – building your online following, engaging directly with your audience, and establishing your company as a thought leader within the market. However, more and more e-commerce businesses are using their social media platforms to sell their products directly to their followers.

Platforms such as Facebook and Instagram offer paid advertising services that allow e-commerce businesses to promote their products and drive traffic directly to their website. If you’ve been struggling to convert sales on your website but have a strong social media presence, then advertising through these platforms for example facebook marketing is a good way to get your products directly in front of the people who matter. Keep in mind only targeting the right people will increase your ecommerce website conversion rate!

This is especially true if your e-commerce business offers products that align with the type of content that traditionally performs well on social media platforms like Instagram or Facebook. If your business is in the fashion, clothing, lifestyle, or culinary industry, then you have a strong chance of increasing your sales through making your social media profiles shopable.

Improving Your Checkout System

When it’s time for your customers to fill out the checkout form, to increase your ecommerce website conversion rate you want to make sure everything is clearly understandable and easy to complete. Your checkout form can be optimised to mitigate as many user errors as possible, limiting the frustration your customer may experience when completing their payment.

Remember, the more streamlined your checkout system is, the less chance there will be that your customer will click away before finalising the purchase.

Some ways to optimise your checkout system include:

  • Ensure that the CVV and input formats are clear
  • When the user types in their credit card details, automatically format the 16 numbers into groups of 4 to make it easier for the user to track their progress
  • When choosing a date, have a date selector and/or dropdown, instead of the user typing in the date themselves

Finally, we recommend including digital wallets as a payment option such as PayPal, Amazon Pay, and Apple Pay. Signing into a digital wallet at a checkout pre-fills all the relevant fields and saves the user time and effort in their purchasing process and in-turn improving your ecommerce website conversion rate. Some customers may not bother going through with their purchase if they see your checkout system isn’t compatible with their digital wallet.

Contact One Click Media

One Click Media are Australia’s leaders in web development for e-commerce businesses. Our comprehensive range of web development and design services will ensure that your website is built with the strongest foundations to help elevate the rest of your business. Our e-commerce websites are fast, secure, and reliable, while being optimised to rank on Google.

Our web design services optimise e-commerce websites to increase ecommerce website conversion rates. The One Click Media team has an eye for what works and what doesn’t in e-commerce web design, ensuring that your site effectively guides the customer towards going all the way with their purchase.

To make use of One Click Media’s web development services, contact our team today on 1300 082 520.