Suppose you made a killer eCommerce store using Shopify, Magento or custom-developed your eStore. The website looks modern and chic, especially when compared to other competitors in your niche. However, despite your best efforts, your sales are abysmally low. What can be the reason? Well, in this case, you should familiarize yourself with a certain metric; conversion rate.
A conversion refers to the completion of the desired action taken by a visitor to your website. For an e-commerce business, this action can be any of the following:
An online sale
A user adding an item to the wishlist
A user adding a product to their cart
Social media shares
Email sign ups
The ratio of visitors that convert into customers is your conversion rate. For instance, if you have a 3% conversion rate, then this means that 3 out of 100 people who visit your website, "convert" .i.e. they buy from you or take the desired actions.
Conversion is probably the most important metric for your website, and you have to monitor it to plan different aspects of your business. A conversion rate shows how well your website is optimized for your audience. Determine whether they can access your web pages smoothly or turn to other websites because of poor user experience.
For instance, you may find that your landing page is optimized well for SEO. It is ranked high on Google, which is why many users click on it, but hardly anyone takes the desired action. In such a scenario, the issue is often linked to weak copy .i.e. your users aren't tempted to buy after reading your copy. Sometimes even a minor change in a heading, subheading, or CTA can increase conversions.
By optimizing your conversion metrics, you can make the most out of your existing traffic without investing more money in your online marketing campaigns, especially the costlier ones like PPC ads.
Instead, you can increase your sales with the same prospects and leads.
How to Calculate Conversion for My eCommerce Business
To give you increased visibility about your online business, we have come up with a calculator that can show your conversion rate . And more importantly, it shows that if you can improve any of the core variables, how much difference will it make to your overall profits in exact figures.
Let's say your eCommerce business has the following figures with 1,000 monthly visitors and nine orders; then you have to enter details for the following fields.
Average monthly visits – The average figure for numbers of users visiting your website. They can come from an online search, a paid ad, a social media post, or word of mouth.
Average orders per month – The average figure for the number of purchases made on your online store.
Average monthly sales – The average figure for your sales revenue in Indian Rupee.
Average Markup/Profit Increase – The average growth of profits from your sales in Indian Rupee.
Tip: If you are transacting in any other currency, you can enter your numbers and read the results by replacing Indian Rupee.
This means that your conversion metrics are the following:
Since the average conversion rate for an eCommerce business is around 2% to 3%, you lag behind the competition. Moreover, if you are in a specific niche, such as apparel and footwear, your conversion rate should be at least 4%. So, what to do?
We have created a step-by-step solution to address your woes. Our calculator shows that by increasing your conversion to 2%, you can get 12 new customers, which increases your profits by ten times!
Next, we can help you to increase site traffic by 5%. With 50 more users, you get three new customers, and profit increases by 3x!
Lastly, we work on your order size and strive to increase it by 7%. This time your profit will increase by five times!
eCommerce Conversion Calculator
Now comes the million-dollar question: how are we going to achieve these goals? For that, you have to work on your conversion rate optimization. Contact us right now to find how to do it.
Also, take a peek at our client roster that includes the leading Asian brands.
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