Conversions can occur in several scenarios. The most common metric to measure is, of course, sales. However, you need to dig a little deeper.
For example, an e-commerce marketplace can use Google Analytics to track customer purchase journeys. Do they come from your main traffic acquisition channels? How many touchpoints do they make before making a purchase?
You also need to know which metrics influence conversions. Here are a few metrics to look out for:
Time on page : This is the amount of time visitors spend on a specific page of your ecommerce website, especially product pages and checkouts.
Website Speed : Helps you see how long your website takes to load.
Traffic : This is the number of visitors to your ecommerce website over a given period, whether from paid ads, referrals, or organic traffic.
Cart Abandonment Rate : Highlights the percentage of users who added items to their cart but did not complete the purchase.
Average Order Value : This is the average amount spent per order, which highlights the effectiveness of your pricing strategy.
Why are exchange rates important for Ecommerce ?
The goal of ecommerce optimization is to increase sales, right? For example, web traffic is great for vanity, but it linkedin database doesn't put food on the table.
Sales yes.
Knowing your conversion rate allows you to see what you’re doing right and where you can improve. From there, you can implement ecommerce optimization strategies and other tactics to increase conversion rates and close more sales. This includes using a multilingual ecommerce platform to reach a wider audience and offering free shipping to first-time customers.
If you have a low conversion rate and a high bounce rate, it's either because your copy is too confusing or your pages aren't loading fast enough. In such situations, your conversion rate can increase if you reduce your bounce rate.
However, the only way to reach these conclusions is to track conversions.
ecommerce conversion rate equation
Divide your total eCommerce transactions by the total number of website visits, then multiply the resulting number by 100.