The Complete Guide to eCommerce Development 2024

How to Calculate Conversion Rate for an eCommerce Store

How to Calculate Conversion Rate for an eCommerce Store

In the competitive world of eCommerce, understanding and optimizing your conversion rate is crucial for success. Conversion rate is a key metric that measures the effectiveness of your sales funnel and indicates how well you are turning website visitors into paying customers. By accurately calculating your conversion rate, you gain valuable insights into the performance of your online store and make data-driven decisions to improve your sales and revenue.

This article will walk you through the process of calculating conversion rate for your eCommerce store. Whether you’re a seasoned eCommerce entrepreneur or just starting out, this article will provide you with the knowledge and tools to measure and analyze your conversion rate effectively.

What is conversion rate for an online store

Conversion rate in digital marketing is a basic concept that helps you evaluate the performance of a website. For example, how effective is your advertising or user behavior on the site, and any other actions you expect from your target audience. Examples of conversion actions include conversion from an order to a sale (i.e. filling out an order form and making a purchase). Conversion rate measures how many visitors to a particular page have clicked a button in relation to the total number of visitors to that page.

Conversion rate formula

To figure out conversion rate, use the formula:

Conversion Rate = (Number of Conversions / Number of Visitors) * 100

For example, if you had 1000 visitors to your website and 50 of them made a purchase, the conversion rate calculation would be:

Conversion Rate = (50 / 1000) * 100 = 5%

How to Calculate Conversion Rate

To find conversion rate in your store, use this step-by-step guide:

  1. Define your conversion goal: Determine the specific action or event that you consider as a conversion. For example, it may be making a purchase, signing up for a newsletter, or completing a form.
  2. Gather data: Collect the necessary data to calculate the conversion rate. This typically involves tracking the number of targeted actions and the number of visitors or leads.
  3. Calculate the conversion rate: Use the above-mentioned formula to calculate the conversion rate.
  4. Interpret the conversion rate: Once conversion rate measurements are done, analyze the result. A higher conversion rate indicates that a larger percentage of your visitors are taking the desired action, while a lower conversion rate may suggest areas for improvement in your sales funnel or website.
  5. Continuously track and optimize: Monitor your conversion rate regularly and make data-driven decisions to optimize your conversion rate. Experiment with different strategies, such as improving website design, refining product descriptions, or optimizing your marketing campaigns, to increase conversions.

eCommerce conversion rates: industry average and benchmarks

Average online store conversion rates  vary significantly by industry, product type, and other factors. However, it is generally considered that a good conversion rate is 2-3%. Conversion rate analysis can reveal insights into improving these rates. At this, in some industries and with the use of certain marketing strategies, the eCommerce conversion rate may be higher, provided certain marketing strategies are applied.

In Q2 2023, the average global conversion rate on eCommerce sites was around 2%.

Average eCommerce conversion rate 2022-2023

Oberlo considers the following products from the following segments as the most converting:

  • Health and well-being: 5.4%
  • Arts and crafts: 4.46%
  • Kitchen and home appliances: 2.77%
  • Pet care: 2.09%
  • Sports and recreation: 1.77%
  • Fashion clothing and accessories: 1.55%
  • Toys, games, and collectibles: 1.51%
  • Cars and motorcycling: 1.37%

When marketers keep track of conversions, they compare their store’s performance with the industry benchmark given above.

What conversion rates are considered good

There are some general benchmarks that can be considered as good conversion rates for different types of conversions:

  1. eCommerce websites: Conversion rates for eCommerce websites typically range from 2% to 5%. However, top-performing eCommerce sites can achieve conversion rates above 10%.
  2. Paid ads: the average conversion rate for paid ads across industries is typically around 2% to 5%. This means that out of every 100 ad clicks, 2 to 5 users will complete a desired action, such as making a purchase or filling out a form. To determine what is considered a good conversion rate for your specific paid ad campaign, it’s essential to establish clear goals, monitor and analyze your campaign performance, and compare your results against industry benchmarks and your own historical data.
  3. Email sign-ups: Conversion rates for email sign-ups can vary widely, but a rate of 20% or higher is often considered good. This means that 20% of website visitors who are presented with an email sign-up form subscribe to the mailing list.
  4. Landing pages: Conversion rates for landing pages may range from 10% to 30% or more. A conversion rate above 20% is generally considered good for a well-optimized landing page.
  5. Sales funnels: The sales funnel typically consists of several stages, such as awareness, interest, consideration, and purchase. At each stage, the goal is to move prospects closer to making a purchase. The conversion rate measures how effective the sales process is at converting prospects from one stage to the next. Conversion rates throughout a sales funnel may vary significantly. However, a good overall conversion rate for a sales funnel is typically considered to be around 2% to 5%.

Other specific conversion rates

  1. Abandoned Cart Conversion Rate: It helps you understand the effectiveness of your cart abandonment recovery strategies, such as email reminders or retargeting campaigns, in converting abandoned carts into completed purchases. The benchmark for abandoned cart conversion rates can range from 5% to 15%
  2. Checkout Conversion Rate: Checkout conversion rate focuses specifically on the percentage of visitors who proceed from the cart to complete the eCommerce checkout process. Checkout conversion rates can vary widely, but a benchmark of 20% or higher is generally considered good. 
  3. Call-to-Action Conversion Rate: Call-to-action (CTA) conversion rate measures the effectiveness of specific calls-to-action on your website. Its conversion rates can range from 1% to 10% or more, depending on the context and placement of the CTA. 
  4. ECommerce Category Conversion Rate: ECommerce category conversion rate evaluates the performance of different product categories or sections within your online store. It can vary depending on the product assortment, pricing, and user experience. A benchmark of 2-5% or higher is generally considered good for category conversion rates.

By calculating and analyzing these specific conversion rates, you gain deeper insights into various aspects of your eCommerce store’s performance and make data-driven decisions to improve conversions and overall business success.

What about marketplaces? Is there a difference in conversion between marketplaces and online stores

Yes, there are differences in conversion between marketplaces and online stores. Here are some of them:

  • Audience: Marketplaces usually have a large audience, as they bring together many sellers and offer a wide range of products. This can generate more potential buyers and increase conversions.
  • Conversion: Marketplaces usually have higher conversion rates than online stores because they offer a wide variety of products from different sellers. Customers can compare prices and product features from different sellers on the same platform, which  increases the likelihood of making a purchase.
  • Variety of brands: Marketplaces offer the convenience of buying multiple products from different sellers in one shopping cart.

However, it is worth noting that conversion also depends on many other factors, such as product quality, pricing, ease of navigation, etc. Therefore, it is important to test and analyze data to determine which sales channels work best for your business.

How to track conversion rates?

Web analytics systems, such as Google Analytics, allow you to track the number of visitors, their behavior on the site, the purchases made, and calculate conversion rates.

It’s important to have high conversion rates, as it shows that your website and marketing efforts are generating the right audience, who are spending money with you. Consider benchmark metrics to evaluate your ranking and adjust your marketing strategy to improve your site’s score.

Why it’s important to have high conversion rates

Having good conversion rates is important for several reasons:

  1. Increased revenue: Conversion rates directly impact your bottom line. When more visitors or leads convert into paying customers, it leads to increased sales and revenue for your business. Improving your conversion rates helps you maximize the return on your marketing investments and drive more profits.
  2. Cost efficiency: A higher conversion rate means you are getting more value out of your marketing efforts. Instead of spending more money on acquiring new visitors or leads, improving conversion rates allows you to make the most of your existing traffic or leads. This can result in cost savings and a more efficient use of your marketing budget.
  3. Competitive advantage: In today’s competitive landscape, businesses are constantly vying for customers’ attention and engagement. Having a higher conversion rate may give you a competitive edge by demonstrating that your products, services, or website are more compelling and effective at converting visitors into customers. This will help you stand out from your competitors and generate more customers.
  4. Better customer insights: Analyzing conversion rates provide valuable insights into customer behavior and preferences. By understanding what drives conversions and what barriers exist, you are able to make informed decisions to optimize your marketing strategies, website design, user experience, and product offerings. This data-driven approach leads to continuous improvement and better alignment with your target audience.
  5. Growth opportunities: When you have a good conversion rate, it opens up opportunities for growth. With a solid foundation of converting customers, you are able to scale your marketing efforts, invest in new channels, expand your product line, or enter new markets with confidence. Good conversion rates provide a strong base for business expansion and success.

How to improve your conversion rate

Improving conversion rates for an eCommerce site involves a combination of optimizing various aspects of your website, marketing strategies, and user experience. Here are some strategies you can implement:

  1. Optimize Website Speed: Slow-loading websites can significantly impact conversion rates. Ensure that your website is optimized for speed by optimizing images, using caching techniques, and minimizing unnecessary scripts and code.
  2. Improve Website Design and Navigation: Make sure your website has a clean and visually appealing design. Ensure that it is easy to navigate, with clear menus, search functionality, and intuitive user flows. Use high-quality product images and provide detailed product descriptions.
  3. Optimize Product Pages: Product pages play a crucial role in driving conversions. Optimize them by including clear and compelling product descriptions, highlighting key features and benefits, using high-quality images and videos, and displaying customer reviews and ratings.
  4. Streamline Checkout Process: Simplify the checkout process by minimizing the number of steps required. Offer guest checkout options, provide clear instructions and progress indicators, and optimize form fields to reduce friction. Implement trusted payment gateways and offer multiple payment options.
  5. Implement Trust Signals: Build trust with your customers by displaying trust badges, security seals, and customer reviews. Showcase any certifications or awards that your business has received. Provide clear and transparent policies for shipping, returns, and customer support.
  6. Optimize for Mobile: With the increasing use of mobile devices for online shopping, it’s essential to have a mobile-responsive website. Optimize your site for mobile devices to provide a seamless and user-friendly experience.
  7. Personalize the Shopping Experience: Implement personalization techniques such as product recommendations, personalized offers, and dynamic content based on user behavior and preferences. This can enhance engagement and increase conversion rates.
  8. Implement Abandoned Cart Recovery Strategies: Set up automated email reminders to recover abandoned carts. Offer incentives, such as discounts or free shipping, to encourage customers to complete their purchases. Consider retargeting campaigns to reach out to customers who have abandoned their carts.
  9. Optimize Marketing Campaigns: Continuously analyze and optimize your marketing campaigns. Test different messaging, offers, and targeting strategies to improve conversion rates. Use data analytics to identify high-performing campaigns and allocate resources accordingly.
  10. Conduct A/B Testing: Test different variations of your website, landing pages, and call-to-action buttons to identify what resonates best with your audience. A/B testing can help you make data-driven decisions and optimize for higher conversions.

Note that improving conversion rates is an ongoing process. Continuously monitor your website analytics, user feedback, and industry trends to identify areas for improvement and implement strategies to optimize your eCommerce site for higher conversions.


Calculating your conversion rate is a fundamental step towards understanding the performance of your eCommerce store and maximizing its potential. By following the steps outlined in this guide, you will gain valuable insights into your customers’ behavior, identify areas for improvement, and ultimately increase your conversion rate, leading to higher sales and revenue.

Stay tuned for the upcoming sections, where we will dive deeper into each topic, providing you with actionable advice and best practices to help you measure, analyze, and optimize your conversion rate effectively.