What is Conversion Rate?
Conversion rate refers to the percentage of website visitors who take a desired action, such as making a purchase or signing up for a newsletter. A high conversion rate indicates that your website is doing a good job of turning visitors into customers.
So, for example, if your site receives 1,000 visits and 50 of those visits result in an order, your e-commerce conversion rate would be (50 / 1,000) x 100 = 5%.
It's worth noting that different data sources may use different names for this metric. Google Analytics commonly refers to it aas the e-commerce conversion rate, while Shopify's Analytics calls it the “Online store conversion rate.” Other analytics tools may use names such as “transaction rate” or “order rate.” Despite these differences in naming, the metric remains the same.
Average Conversion Rate on Shopify
What is the average conversion rate on Shopify?
A recent survey conducted by Littledata revealed that the typical conversion rate for Shopify stores is 1.4%. However, don't let this seemingly low figure discourage you as it's common for most businesses starting out in eCommerce.
To stand out among the competition, strive for a conversion rate greater than 3.3%, placing you in the top 20% of Shopify store owners. Achieving a conversion rate above 4.8% would propel you into the top 10%.
On the other hand, it's essential to avoid having a conversion rate that falls below 0.3%, which would place you in the bottom 20%.
In summary, it's crucial to maintain a healthy average conversion rate between 0.3% and 3.3% to ensure that your eCommerce business thrives.
What is a good conversion rate for Shopify?
A conversion rate of over 2% is considered good for Shopify.
What is a bad conversion rate for Shopify?
A conversion rate of less than 1% is considered bad for Shopify.
Reasons Your Shopify Conversion Rate is Low
In this section, we'll explore the most common reasons for a low conversion rate, so you can make the necessary changes to improve your results. If you're an experienced merchant, skip ahead to our 10 strategies section where we dive into advanced techniques and strategies for skyrocketing your Shopify conversion rate.
1. Irrelevant Traffic
As a Shopify merchant, it's crucial to attract the right kind of traffic to your website to convert visitors into customers. However, if your website is receiving irrelevant traffic from your SEO efforts, it could negatively impact your conversion rate like
- A high bounce rate can result from irrelevant traffic, which is the percentage of visitors who leave your website after viewing only one page.
- A high bounce rate can negatively impact your website's search engine ranking, decreasing the amount of relevant traffic to your website. Check our article on how to reduce bounce rate.
To avoid receiving irrelevant traffic from SEO, it's essential to target the right keywords in your content and optimize your website for those keywords.
Use tools like Google Analytics to track your website's traffic sources and make adjustments to your SEO strategy accordingly.
2. Ads Unclear and Poorly-Targeted
As a Shopify merchant, targeting your advertising efforts is important to increase your conversion rate. However, unclear and poorly-targeted ads can negatively impact your conversion rate in the following ways:
- Confusing potential customers: Ads with a vague message can make it difficult for potential customers to understand what you're selling, leading to low click-through rates or website abandonment.
- Reaching the wrong audience: Poorly-targeted ads may reach an audience that isn't interested in your products or services, reducing the likelihood of conversion.
- High bounce rate: Ads that are unclear and poorly targeted can lead to a high bounce rate, which negatively impacts your conversion rate.
To avoid these issues, it's important to create clear and concise ads that effectively communicate the value of your products or services. Additionally, targeting your ads to the right audience can increase the likelihood of conversion.
You can use various tools to target your ads, such as Google Ads and Facebook Ads, which allow you to target specific demographics, interests, and behaviors. Retargeting ads can also help increase the likelihood of conversion by reaching visitors who have already visited your website.
3. Slow Loading Speed
As a Shopify merchant, having a fast-loading website is crucial to ensure a positive user experience and increase your Shopify conversion rate. If your website is slow to load, it can lead to a high bounce rate, which is the percentage of visitors who leave your website after viewing only one page. This can result in a reduction of your conversion rate and ultimately, your sales.
There are several reasons why slow loading speed can negatively impact your conversion rate:
- Impatience: In today's fast-paced world, people expect websites to load quickly. If your website takes too long to load, visitors are likely to become impatient and leave before making a purchase.
- Poor user experience: A slow-loading website can result in a poor user experience. Visitors may find it difficult to navigate your website, and this can make it harder for them to find what they're looking for.
- Lower search engine rankings: Google's algorithm prioritizes fast-loading websites, so a slow-loading website can negatively impact your search engine rankings. This can lead to a reduction in the number of visitors to your website, ultimately affecting your conversion rate.
How fast my website needs to be?
According to a 2019 study by Portent, a 0-4 second load time is best for conversion rates, and the first five seconds of page-load time have the highest impact on conversion rates.
In fact, the highest e-commerce conversion rates occur on pages with load times between 0-2 seconds. With each additional second of load time, website conversion rates drop by an average of 4.42%, the study says.
How to Improve Slow Loading Speed?
- Identify the root cause: There can be multiple reasons for a slow-loading website, and it's important to identify the root cause before taking action.
- Optimize images: Large images can significantly slow down your website's loading speed. Optimize images by reducing their file size or using compression tools.
- Use tools to identify the problems: Use tools like Google PageSpeed Insights, GTmetrix, or Pingdom to identify the issues causing slow loading speed.
- Use a content delivery network (CDN): A CDN can help distribute your website's content across multiple servers, reducing loading times.
By implementing these steps, you can improve your website's loading speed and provide a better user experience to your visitors leading to an improvement in your Shopify Conversion Rate. For more information and tips on how to improve your Shopify loading speed, check out our article "Improve Shopify Loading Speed."
4. Website not Optimized for Mobile Devices
As a Shopify merchant, it's important to ensure that your website is optimized for mobile devices. With the increasing number of shoppers using mobile devices to shop online, having a mobile-friendly website can significantly impact your Shopify conversion rate and sales.
A mobile-friendly website should have the following characteristics:
- Fast loading times: Mobile users expect websites to load quickly, and a slow-loading website can lead to high bounce rates.
- Responsive design: A responsive website design adjusts to the user's screen size, providing an optimal browsing experience regardless of the device used.
- Clear and concise content: Mobile users have limited screen space, so your content should be clear and concise to provide a better user experience.
- Easy navigation: Mobile users need an easy-to-use navigation system that allows them to quickly find what they're looking for.
- Mobile-optimized checkout: Ensure that your checkout process is mobile-optimized, with a simple and easy-to-follow process.
Having a mobile-friendly website can also have a positive impact on your search engine rankings. Google's algorithm prioritizes mobile-friendly websites, so having a mobile-friendly website can help improve your website's visibility in search engine results pages.
To optimize your website for mobile devices, you can use responsive website design, compress image sizes to reduce loading times, and use mobile-friendly fonts and buttons. Additionally, testing your website on various mobile devices can help you identify and fix any issues that may arise.
5. Unclear or Inadequate Product Photos
The visual appeal of your online store can impact your Shopify conversion rate, with 93% of consumers stating that visual content plays a significant role in their buying decisions. Product Photos are a key element of this visual appeal, as they showcase your product’s value and details, and create a more realistic and engaging experience for your customers.
Depending on your store state and growth you maybe have different needs and doubts regarding product photos: If you need a guide on how to do it yourself check Shopify Guide on e-commerce photography.
6. Poor Product Descriptions
Effective product descriptions are essential for providing customers with the information they need to make informed purchase decisions. A poorly written or inadequate product description can cause confusion and lead to a drop in your Shopify conversion rate. Therefore, it is crucial to ensure that product descriptions are clear, concise, and highlight the benefits and features of the product.
In addition to crafting effective product descriptions, using metafields on Shopify is a valuable way to provide more organized and detailed information about your products. For instance, you can use metafields to offer details on topics like washing instructions, size guides, and materials used. By including this additional information, you can enhance the customer experience, make it easier for customers to find what they need, and ultimately increase sales.
If you're not already using metafields, consider implementing them in your Shopify store to provide more information to your customers. For more information on how to use metafields, check out our article, "Shopify Metafield Uncovered."
According to Baymard Institute, 20% of users will abandon a purchase if the product information is incomplete or unclear. Ensure your product descriptions answer all potential customer questions to reduce cart abandonment and increase sales.
7. Lack of Social Proof
When visitors come to a new store, they may feel hesitant to make a purchase if they're unsure about the store's legitimacy or the quality of its products. This lack of trust can lead to a drop in your Shopify conversion rate. However, social proof can help alleviate these concerns and improve customer confidence in your store and products.
There are numerous forms of social proof that you can utilize, such as:
- Customer reviews
- Social media mentions
- Trust badges
- Industry awards
- Affiliations with recognized organizations
Overall, incorporating social proof into your website can help to build trust and confidence with new visitors, improve conversion rates, and ultimately lead to increased sales.
If you need more information regarding these strategies check our article “Social Proof in Shopify”.
8. User Experience Barriers
Providing a seamless user experience is crucial for any e-commerce business, yet it is often overlooked by store merchants. Failing to prioritize user experience can negatively impact your Shopify conversion rate and lead to lost sales.
As outlined in this article, there are several potential barriers to a seamless user experience, including:
- Poor website design or layout
- Confusing or unclear navigation
- Slow loading times
- Difficult or time-consuming checkout process
- Lack of mobile optimization
- Insufficient product information
- Limited payment options
- Ineffective search functionality
- Limited shipping or delivery options
10 Strategies to Boost Your Shopify Conversion Rate
Now that we've covered the more common reasons why your Shopify conversion rate may be low, let's explore more advanced strategies and how to implement them in your Shopify store.
1. Add a Popup to Ask Users Why They’re Leaving
Adding a popup to ask users why they're leaving can be a useful strategy for reducing cart abandonment and improving conversion rates on Shopify stores. This popup, also known as an exit intent popup, is triggered when a user attempts to exit the website or abandon their cart.
The goal of the popup is to encourage users to share their reasons for leaving or abandoning their cart. This information can be used to identify common pain points or issues that may be hindering the user experience and causing visitors to leave the website without completing a purchase.
To implement this strategy, Shopify store owners can use a variety of popup apps that are available in the Shopify app store. These apps offer customizable templates for exit-intent popups that can be tailored to fit the branding and messaging of the store.
It's important to ensure that the popup is designed in a user-friendly manner and provides value to the user. For example, offering a discount code or free shipping may incentivize users to complete their purchase or return to the website at a later time.
2. Design Your Home Page Around a Clear Call-to-Action
Designing a homepage with a clear call-to-action (CTA) is a great way to improve conversion rates on your Shopify store. A call-to-action is an element that prompts visitors to take a specific action, such as making a purchase, signing up for a newsletter, or following your social media accounts. To do this, identify your website's primary goal and create a prominent CTA that encourages visitors to take that desired action. Place the CTA in a prominent location, such as above the fold, and use design elements like contrasting colors, bold typography, and high-quality images to draw attention to it. Use clear and concise language to communicate the action you want visitors to take, like "Buy Now," "Sign Up Today," or "Learn More." By creating a visually appealing layout and using clear language, you can encourage visitors to take the desired action and improve the overall user experience.
3. Power Up Your Search
Improving the search functionality on your Shopify store can be an effective way to enhance the user experience and increase Shopify conversion rates. Here are some strategies for powering up your search in Shopify:
- Use autocomplete: Implementing an autocomplete feature in your search bar can help users find what they're looking for faster and more accurately. Shopify offers a built-in autocomplete feature, but you can also use third-party apps to customize the feature and improve its accuracy.
- Use filters: Filters can help users narrow down their search results and find the products they're looking for more quickly. You can use Shopify's built-in filtering options, or you can use third-party apps to customize your filters.
- Optimize product titles and descriptions: Ensuring that your product titles and descriptions are clear and accurate can help improve the accuracy of your search results.
- Use synonyms: Using synonyms for common search terms can help ensure that users find what they're looking for, even if they use different terminology.
- Analyze search data: Analyzing your search data can provide valuable insights into what your customers are looking for and how they're searching for it. This information can be used to improve your search functionality and optimize your product offerings.
- Use a third-party search app: Shopify offers several third-party search apps that can improve the functionality and accuracy of your search results. These apps offer advanced features like natural language processing, typo correction, and predictive search.
By implementing these strategies, you can power up your search in Shopify and provide a more seamless and accurate search experience for your customers. This can help improve the user experience and ultimately drive sales in your store.
5. Frictionless Checkout Process
You're probably already familiar with the basics of checkout best practices:
- Clear Product Information - This will help to ensure that there are no surprises at checkout and that customers feel confident in their purchase decisions
- Secure & Fast Payment Options - Customers want to feel secure when making online purchases, so it is important to offer secure payment options
- Progress Tracker - It can help to reduce anxiety and uncertainty for customers by showing them exactly where they are in the checkout process and what steps are left
- Display Return / Refund Policy - Customers want to know that they can return or exchange a product if they are not satisfied, so it’s important to have a clear return and refund policy in place
- Shipping Costs - According to a 2022 study conducted by Baymard, shipping costs account for 48% of cart and checkout abandonments
- Shipping Options Variety - It’s important to have shipping between different price ranges, we don’t know if your clients prefer UPS, FedEx, or even local shipping options for specific countries. Giving multiple options will allow customers to pick what’s most convenient for them
If you have implemented all of these best practices, the next step is to build a funnel in your analytics platform, such as GA4, and collect data to gain insight into which step of the checkout process your customers are dropping off.
By taking all of these steps, you will gain a better understanding of your customers and improve your Shopify conversion rate.
6. Add several payment options
In today's market, the payment options available are virtually unlimited. Every year, new payment providers emerge with a plethora of options and installment plans. Depending on the average value of your products, payment with installments like Klarna or Zippay may be a good option.
The payment options you choose will depend entirely on which markets you are targeting. Before entering each market, it's important to do research to understand which payment providers customers are accustomed to using.
In some countries, customers are more likely to use digital wallets like PayPal or Alipay, while in other countries, traditional credit card payments may be the norm. By understanding the payment preferences of your target markets, you can offer the payment options that are most convenient for your customers and increase the likelihood of completing a sale. For example in The Netherlands, 53% of the purchases are made using iDeal which is not even known in the USA.
7. Set up Retargeting flows
Even with all the good practices and the perfect cart and checkout, you will still have a lot of customers abandoning this process and that’s fine because we can still take advantage of that by using retargeting flows.
Retargeting flows are an effective way to recover lost sales and convert almost customers into actual customers. In fact, studies show that up to 70% of shoppers abandon their carts, leaving a lot of room for improvement.
Let’s see the different types of retargeting flows you can implement tomorrow and increase your Shopify Conversion Rate:
The best way to retarget your customers the only problem with this is they need to be on your newsletter
- Cart abandonment: Remind users when they forget items in their cart. To increase the chances of customers completing their purchase, consider offering discounts or other incentives.
- Back in stock: If a customer was interested in a product that was out of stock, send them an email once it's available again to remind them to complete their purchase.
- Wishlist reminders: If a customer added items to their wishlist but didn't purchase them, send them a reminder email with a discount or other incentive to encourage them to complete their purchase.
This method targets users who have previously interacted with your brand, either by visiting your page, engaging with your posts or ads, or adding products to their cart. By retargeting them with relevant ads, you can remind them of their interest in your brand and products.
Google Ads Retargeting
This type of retargeting involves showing ads to users who have previously visited your website. This can be an effective way to remind them of your brand and products and encourage them to complete their purchase.
Overall, retargeting flows are a powerful tool to convert potential customers and recover lost sales. By implementing these strategies, you can increase your chances of improving your Shopify Conversion Rate.
8. Use Cross-sells
By utilizing upsells you can encourage customers to purchase higher-priced products. On the other hand, cross-selling involves promoting complementary items that would pair well with the products in the customer's shopping cart.
While upsells and cross-sells can boost your average order value, it's crucial to avoid overwhelming your customers with too many options. It's important to keep the focus on the product they are currently viewing while displaying a maximum of three additional products that complement their selection without overcrowding the product page.
9. A/B Test Different Variations
A/B testing is an essential tool for any Shopify store looking to optimize its performance. This testing methodology involves launching two different versions of a feature or design to randomly selected user populations. One group experiences the original version without changes (control version), while the other group experiences the version with the new feature or design (alternative version).
By analyzing the results using statistical analysis, you can determine which version performs better and becomes the winning variant. You're not limited to just two versions - you can test multiple alternatives, such as in an ABC or ABCD test. Additionally, you can adjust the split of users to fit your needs. With A/B testing, you can ensure that any changes you make to your Shopify store are well received by your users and improve their experience.
There are many elements that can be tested using A/B testing in a Shopify store. Some common elements include:
- Product descriptions: Testing different product descriptions to see which one results in more sales.
- Product images: Testing different images of the same product to see which one results in more clicks or sales.
- Call-to-action (CTA) buttons: Testing different CTA button colors, text, and placement to see which one results in more clicks and conversions.
- Landing pages: Testing different landing page layouts and content to see which one results in more conversions.
- Checkout process: Testing different checkout flows to see which one results in more completed purchases.
- Shipping options: Testing different shipping options to see which one results in more completed purchases.
10. Mobile App Builder
Finally, to optimize your Shopify store for conversions and provide a seamless mobile shopping experience for your customers, consider using a Mobile App Builder to build a mobile app. This option can improve numerous aspects of your store, including speed, customer experience, and mobile responsiveness, which were mentioned in this article.
You can learn more about how to turn your Shopify store into a mobile app in our article.
After all these strategies, you might be feeling overwhelmed about how to implement them and which one to prioritize first. The key is not to try implementing them all at the same time, as it won't be effective and you won't be able to measure the impact of each strategy. Start slow and you can also check our blog we have some topics more in-depth on how to implement some of the strategies we talked about here.
Improving your Shopify conversion rate takes time, effort, and a willingness to test and optimize. By understanding what affects your conversion rate, implementing best practices, and continuously experimenting and iterating, you can boost your sales and grow your business. Remember to regularly monitor and analyze your store's performance, and never stop looking for ways to improve your conversion rate.
Thank you for reading! We hope you found this guide helpful in improving your Shopify conversion rate. If you have any questions or would like to learn more about Napps, feel free to contact us.