Have you ever visited an online store, browsed through their products, but ultimately left without making a purchase?
As an online retailer, this is a frustrating experience that can impact your bottom line. That’s where the conversion rate comes in.
What does the conversion Rate Indicate?
In simple terms, conversion rate refers to the percentage of visitors to your Shopify store who make a purchase.
The concept of conversion rate has been around since the early days of e-commerce, but it has become increasingly important as online shopping has grown in popularity.
In the early days of e-commerce, conversion rates were typically meager, in the range of 1-2%. It was partly because many consumers still needed to be convinced of online shopping and were hesitant to make online purchases.
However, as e-commerce has become more mainstream and consumers have become more comfortable with online shopping, conversion rates have generally increased. According to some studies, the average conversion rate for e-commerce sites is around 2-3%, although this can vary significantly depending on the industry and other factors.
Conversion Rate Statistics for Shopify?
Are you an online e-commerce merchant and want to know the role of Conversion rate in your online Shopify Store? Well, the Conversion rate is the backbone Of any business to push it towards profit. The same is the case of Shopify.
As one of the leading e-commerce platforms, Shopify has likely seen similar conversion rate trends.
Shopify was founded in 2004, and since then, it has become one of the most popular e-commerce platforms in the world, with over 1.7 million businesses using the platform to sell products and services online.
According to 2021 financial results, Shopify reported revenue of $1.12 billion, a 42% increase compared to the same period in the previous year. The company also said a GMV of $42.2 billion, a 25% increase compared to the same period during the last year.
Standard Conversion Rate Of Shopify
The average conversion rate for Shopify stores varies depending on various factors, such as the industry, product type, and target audience. However, according to some studies, the average conversion rate for e-commerce sites is around 2-3%.
But how can you estimate the growth of your Shopify Store from the conversion rate? Here are some of the statistics of good or bad conversion rates.
If the conversion rate of your Shopify Store is more than 3.2 %, it indicates that your Shopify Store is among the best 20 % stores. If it exceeds 4.2, your company is among the best 10%.
But if the conversion rate of your business is less than 0.5 %, it’s an alarm that you have one of the worst 20 % Shopify stores. But if it decreases to 0.1 %, you need to take immediate measures to improve your store’s conversion rate if you dont want to be bankrupt.
Littledata surveyed 3,223 Shopify stores in September 2022 and found the average conversion rate for Shopify was 1.4%. (source; littledata).
How to Calculate Conversion Rate?
To calculate the conversion rate, you’ll need to track two key metrics: the number of visitors to your store and the number of those who purchase.
Here’s how to calculate your Shopify store’s conversion rate:
- Determine the period you want to measure. It could be a day, a week, a month, or any other time frame you choose.
- Determine the number of visitors to your Shopify store during that period. You can find this information in your Shopify analytics dashboard or a third-party tool such as Google Analytics.
- Determine the number of visitors who purchased during the same period. Again, you can find this information in your Shopify analytics dashboard or a third-party tool.
- Divide the number of visitors purchased by the total number of visitors to your store, and multiply by 100 to get the conversion rate percentage.
The formula to calculate the Conversion rate is as follows;
Conversion rate (%) = Conversions / total visitors.
Here’s an example: Suppose you had 5,000 visitors to your Shopify store last month, and 100 visitors made a purchase. To calculate your conversion rate, you would divide 100 by 5,000 (0.02) and multiply by 100 to get a conversion rate of 2%.
It’s essential to track your Shopify store’s conversion rate regularly and continually optimize your website, marketing, and other aspects of your business to improve this key metric over time. But how to track Shopify’s conversion rate and optimize it? Let’s learn it in the next section.
How to Track Shopify Conversion Rate?
Your Shopify conversion rate is essential to understand the effectiveness of your website in generating sales.
Here’s how to track your Shopify conversion rate:
1. Set Up Google Analytics:
First, you need to set up Google Analytics on your Shopify store. To do this, go to the “Online Store” section of your Shopify dashboard and click on “Preferences.” Then, scroll down to the Tracking”Google Analytics” section and enter your Google Analytics tracking ID.
2. Define Your Goals:
You must define your conversion goals in Google Analytics. It could be a completed purchase, a subscription to your newsletter, or any other action you want visitors to take on your website.
3. Set Up E-commerce Tracking:
To accurately track your Shopify conversion rate, you must set up e-commerce tracking in Google Analytics. It involves adding a small piece of code to your Shopify store, which allows Google Analytics to track sales and revenue data.
4. Analyze Your Conversion Rate:
Once you have set up tracking, you can analyze your conversion rate in Google Analytics. Go to the “Conversions” section and select “E-commerce” to see your sales data. You can also use the “Goals” section to see how many visitors complete your goals.
5. Use Shopify Analytics:
In addition to Google Analytics, you can also use Shopify’s built-in analytics tools to track your conversion rate. Go to the “Analytics” section of your Shopify dashboard to see data on sales, conversion rate, and other metrics.
By regularly tracking your Shopify conversion rate, you can identify areas for improvement and make data-driven decisions to optimize your website for better performance.
Requirements for CRO
Conversion rate Optimization, known as CRO, is an essential component of any successful online business strategy. Here are some requirements for a Shopify store conversion rate optimization (CRO):
- Understand Your Target Audience: To optimize your conversion rate, you need to understand your target audience, their preferences, and buying behaviors. Conduct customer research and use analytics tools to gain insights about your audience.
- Optimize Your Website Speed: Slow loading speeds can deter customers from completing a purchase. Optimize your website speed by compressing images, reducing the number of plugins, and enabling browser caching.
- Ensure Mobile Responsiveness: Optimizing your Shopify store for mobile responsiveness is essential, with a growing number of consumers making purchases on mobile devices. Ensure that your store is mobile-friendly, with easy navigation, readable font sizes, and quick loading times.
- Implement Clear and Compelling Product Descriptions: Ensure that your product descriptions are clear, detailed, and persuasive, highlighting the benefits of your products and how they can solve your customers’ problems.
- Simplify Your Checkout Process: Make your checkout process as simple and seamless as possible. Eliminate unnecessary steps, and reduce the number of form fields to minimize friction.
- Leverage Social Proof: Use social proof elements such as customer reviews, testimonials, and trust badges to build trust with your customers and increase the likelihood of conversions.
- Use A/B Testing: A/B testing is a powerful way to optimize your conversion rate by testing different versions of your website, product pages, or checkout process to see which performs better. Use A/B testing tools to find out what works best for your store.
- Continuously Monitor and Improve: Regularly monitor your Shopify store analytics and test new strategies to improve your conversion rate over time. The key to a successful CRO is continuously optimizing and adapting to market and customer behaviour changes.
By continuously optimizing your website to improve the user experience and increase conversions, you can drive revenue, reduce costs, and gain a competitive advantage in the marketplace.
Frequently Asked Questions (FAQs)
What is the highest converting Shopify theme?
It’s difficult to say which Shopify theme is the “highest converting” as it depends on factors like your business type, target audience, and product offerings. However, some prominent and highly rated themes on Shopify include “Debut,” “Brooklyn,” and “Minimal.” Choosing a theme that aligns with your brand and is optimized for user experience and conversion is best.
What is a good conversion rate on Shopify?
A reasonable conversion rate on Shopify can vary depending on the industry and the business’s specific goals. As a general benchmark, a 2% to 3% conversion rate is considered average, and a 4% or higher rate is considered good.
Why is my conversion rate so low on Shopify?
There can be many reasons for a low conversion rate on Shopify. It could be due to poor website design, lack of trust signals, complicated checkout process, or irrelevant traffic. Conducting user research, A/B testing, and analyzing data can help identify areas for improvement to optimize your website and increase your conversion rate.
What is the industry average conversion rate for Shopify?
Shopify’s industry average conversion rate varies based on the business type and product offerings. However, on average, a conversion rate of 1% to 2% is typical. However, the conversion rate can vary widely and can be improved through ongoing optimization efforts such as improving website design, user experience, and trust factors.
In conclusion, your Shopify conversion rate is vital for the success of your online business. It allows you to understand the effectiveness of your website in generating sales and making data-driven decisions to improve your performance.
By improving your conversion rate, you can increase revenue, reduce customer acquisition costs, and provide a better user experience for your customers. Conversion rate optimization is a continuous process that requires constant testing and improvement to stay at the top of the curve and remain competitive in the marketplace.
So, start tracking your Shopify conversion rate today and utilizing the insights gained to optimize your website for success. With the best approach and a commitment to data-driven decision-making, you can achieve your business goals and take your online store to the next level!