Are you one of the millions of e-commerce retailers worldwide who rely on Shopify to sell, ship and process payments for items on your website? If so, it’s essential that you understand your e-commerce conversion rate so you can work to boost sales and amplify the overall success of your store.
Let’s take a deep-dive into the e-commerce conversion rate and find out which actions you can take for a positive impact on your business.
What is the e-commerce conversion rate?
According to an article on the Shopify blog, a conversion rate is the number of specific actions taken in a period of time divided by the total number of visits to your site in the same period of time. A conversion is any event that results in someone following a call to action on your website. These may be micro-conversions, such as clicking a “Get Info” button and signing up for emails or texts from your store, or macro-conversions, such as actually making a purchase.
It is up to each retailer to decide what defines a conversion when measuring an online store’s conversion rate. While one business owner may want to include clicking on a product image for an expanded view to be a conversion, as it indicates interest, another retailer may only want to keep track of completed purchases. Regardless of what you consider a conversion, the percentage of site visitors who take that specific action is your Shopify conversion rate.
How are e-commerce conversion rates measured?
Conversion rates on e-commerce websites can be measured through website analytics tools such as Google Analytics. These tools work by providing a bit of tracking code that you can place on your website. This code keeps track of when each individual web session starts and finishes on your site, as well as when a conversion event set by you occurs.
How can I improve my ecommerce conversion rate?
As the Shopify blog post on the subject states, the single most important factor in your conversion rate is your brand’s value proposition. It is critical to make your customers understand what your product is, how it works, and why they need it in their lives. One creative way to do this is to implement the use of an AI chatbot on your e-commerce site to facilitate a better user experience. Your customers will appreciate the ability to get their questions answered in real time, receive support with issues and have fun interacting with their online sales associates. Most importantly, the inclusion of a chatbot can help reduce your bounce rate by eliminating any confusion or frustration that may drive a customer away from your site.
Online retail is a very important part of today’s business landscape, and your e-commerce site is in direct competition with stores around the globe who may be selling similar products. Be sure to stand out against the competition and give customers a clear reason to choose your company, and you may see a significant leap in your conversion rate.