How To Get Started With E-commerce Conversion Rate Optimization

Conversion Rate Optimization (CRO) helps online businesses harness their existing traffic, improve the user experience, and ultimately drive higher revenue and profitability. In this article, we’ll dive deeply into CRO. From definition to optimization tips, we will give you the essential knowledge to turn more website visitors into dedicated customers.

What is Conversion Rate Optimization?

Conversion Rate Optimization (CRO) is a systematic process of increasing the percentage of website visitors who take a desired action, like purchasing, filling out a contact form, subscribing to a newsletter, or any other action that aligns with your business goals. 

How to calculate Conversion Rate

To calculate the conversion rate, you need two pieces of information:

Number of Conversions: This is the total number of desired actions on your website. For example, if your goal is to track purchases, it would be the number of completed purchases. If your goal is to track email sign-ups, it would be the number of sign-ups.

Total Number of Visitors or Clicks: This is the total number of people who visited your website or the total number of clicks on a specific element (like a CTA button) you want to track. It represents your overall website traffic or the number of opportunities for conversion.

The formula for calculating the conversion rate is:

How to calculate Conversion Rate

For example, if your e-commerce website had 500 completed purchases in a month, and you had a total of 20,000 visitors to your website during the same month, your conversion rate would be:

Conversion Rate = (500 / 20,000) x 100 = 2.5%

So, in this example, your website’s conversion rate is 2.5%. This means that 2.5% of the visitors to your website purchased during that specific month.

How does Conversion Rate Optimization increase website performance?

A well-executed CRO strategy can enhance the performance of these critical areas on your website:


  • The homepage serves as the first impression for many visitors. CRO can help by ensuring it effectively communicates your brand, value proposition, and key offerings.
  • Optimizing the homepage layout and navigation can guide users to relevant sections of your site, reducing bounce rates.
  • Implementing engaging elements like hero banners, compelling headlines, and clear CTAs can encourage visitors to explore further.

Product Pages

  • CRO on product pages involves improving product descriptions, images, and reviews to provide comprehensive information to potential buyers.
  • The inclusion of persuasive elements, such as scarcity indicators (e.g., “limited stock”) and social proof (e.g., user ratings), can boost user confidence and conversion rates.
  • Testing various product page layouts and formats helps determine which ones resonate best with your target audience.

Landing Pages

  • Landing pages are often used for marketing campaigns and must be optimized to achieve specific conversion goals, whether lead generation, sign-ups, or sales.
  • CRO for landing pages involves aligning page content with the campaign message, ensuring a seamless user journey, and minimizing distractions.
  • A/B testing different headlines, images, and form placements can provide valuable insights into what elements drive higher conversions.

Checkout Experience

  • CRO efforts here focus on reducing cart abandonment rates and increasing successful transactions.
  • Simplifying the checkout process, offering guest checkouts, and providing clear shipping and payment options can enhance user satisfaction and conversions.
  • Trusting signals like security badges and transparent pricing help build confidence, reducing hesitation during checkout.

Category Pages

  • Category pages are pivotal in helping users find products within specific sections of your website. CRO on category pages involves organizing products logically, using filters and sorting options, and implementing clear CTAs to navigate to product pages.
  • Testing different layouts and filter options can help identify the most effective way to present product categories.
  • Highlighting featured or best-selling products within categories can increase click-through rates and conversions.

What is a good Conversion Rate for E-commerce?

A “good” conversion rate for your store can vary widely depending on several factors, including your industry, type of business, the nature of your website, and specific goals you’re trying to achieve. There’s no one-size-fits-all answer, but here are some general guidelines:

E-commerce Websites

On average, e-commerce websites tend to have 2% to 5% conversion rates. However, the top-performing e-commerce sites can achieve conversion rates above 10%. Factors like the type of products you sell, your target audience, and the quality of your website can all influence this rate.

Lead Generation Websites

According to MarketingSherpa, websites focused on lead generation (e.g., B2B companies) often have conversion rates ranging from 2% to 10%. The specific rate can vary based on the industry and how effectively your website captures and qualifies leads.

Content and Blog Sites

Google Analytics reports that content-driven websites may have lower conversion rates since their primary goal is to provide information. Content site conversion rates typically range from 1% to 3%, but this can vary depending on how well they guide visitors to take desired actions (e.g., sign up for a newsletter).

Landing Pages

Landing pages created for specific marketing campaigns often aim for higher conversion rates, such as 10% or more. These pages are designed with a single and focused goal, like getting visitors to download an eBook or signing up for a webinar.

Local Businesses

Like restaurants or service providers, local businesses often aim for high conversion rates on elements such as online reservations or contact forms. Conversion rates can vary, but aim for 20% or more on these specific actions.

9 e-commerce Conversion Rate optimization tips 

Simplify the user experience

Research shows that you only have a mere 50 milliseconds to capture a visitor’s attention and create a positive first impression. Within this very short time, you must make every moment count.

The secret to success is to avoid overwhelming your potential customers with excessive images and text. Instead, choose a design that reflects your brand identity and communicates your message with finesse. 

9 e-commerce Conversion Rate optimization tips 

Consider the example of Cowboy, a brand that has effectively harnessed the power of simplicity on its homepage. On its homepage, Cowboy utilized a hero banner centered around a product occupying most of the space above the fold. The copy is straightforward and concise, featuring a clear call-to-action (CTA) that pushes visitors to the product information.

Shorten the checkout process

A streamlined checkout reduces friction by simplifying the transaction, offering customers a smoother and more efficient experience. It also significantly curtails cart abandonment rates, particularly on mobile devices, where patience for lengthy forms is limited.

Shortening the checkout process on your website by implementing the following strategies:

  • Guest Checkout Option: Allow customers to make purchases without creating an account. Guest checkouts reduce friction for first-time buyers who may be hesitant to register.
  • Remove Unnecessary Fields: Only collect essential information, such as shipping and billing addresses, payment details, and contact information. Eliminate unnecessary fields like fax numbers or additional contact details.
  • Use Autofill and Auto-detect: To save customers time, implement autofill features for addresses and card information. Auto-detect their location to pre-fill shipping information where possible.
  • Progress Indicators: Display a step-by-step progress indicator so customers know how many steps are left in the checkout process. This reduces uncertainty and encourages completion.
  • One-Page Checkout: Condense the entire checkout process into a single page or as few steps as possible. This minimizes the clicks and page loads required to complete the purchase.
  • Saved Payment Information: Allow customers to save their payment information securely for future purchases. This simplifies the process for returning customers.
  • Multiple Payment Options: Offer a variety of payment methods, including credit cards, digital wallets, and alternative payment options, to cater to customer preferences.
  • Shipping Options: Provide various shipping options, including express and standard, to accommodate customer needs.

Use intelligent search

If your store has many products, you might consider featuring your search bar prominently on your homepage. This allows your customers to quickly reach their desired destination without navigating various categories.

Intelligent search functions offer suggestions and display products as users type, taking into account spelling errors and alternative product names.

Use intelligent search

Alo utilizes a search bar to assist its yoga customers in pinpointing their desired items. 

When users input a few letters, the search bar immediately begins suggesting categories, products, and related results – this proves effective for encouraging upselling and cross-selling.

Organize your categories effectively

When it comes to an e-commerce site, navigating your e-commerce site should be easy, simple, and most of all obvious.

Try to avoid separating your products into too many different categories. Instead, consider organizing your products into four to six comprehensive categories, each with its own set of more specialized subcategories accessible through dropdown menus. 

To make it even more user-friendly, arrange these categories in your navigation bar according to their popularity, with your most frequently sought-after category taking the top spot.

Highlight sales promotions 

These promotions, including discounts, limited-time offers, or bundled deals, serve as attention-grabbers, drawing visitors in with the promise of savings and enhanced value. Promotions can tip casual browsers into paying customers by creating a sense of urgency and overcoming purchase hesitancy, increasing conversion rates and average order values.

You can start with attention-grabbing homepage banners and product page badges to communicate ongoing deals visually. Utilize popup notifications, both exit-intent and timed, to capture visitors’ interest. 

Moreover, create a dedicated promotion page accessible from your navigation menu and incorporate promotion details into product descriptions. On the checkout page, display the applied discounts.

Show of coupon codes and real-time purchases

Welcome Bars (Announcement Bars): These allow you to instantly share sales, coupon codes, promotions, and more with your site visitors as soon as they arrive.

Pop-ups: Employing pop-ups and pop-unders can significantly grow your email subscriber list. Consider implementing a quick pop-up on your homepage, offering a coupon code in exchange for a newsletter sign-up.

Real-time Purchases: Enhance your store with a discreet notification in the bottom corner, showcasing real-time purchases made by other customers. This creates a sense of urgency and provides social proof that others are actively purchasing your products.

Add testimonials/ reviews to build trust

Product reviews offer social proof that convinces shoppers to click “Add to Cart”. According to a 2021 report by PowerReviews, over 99.9% of customers read reviews when they shop online. 

Positive product reviews can make a big difference in convincing shoppers that a product works and is worth buying. 96% of customers look for negative reviews specifically. Reviews also help them make better decisions regarding size, color, and more.

Add testimonials/ reviews to build trust

Kettle & Fire, for instance, implements these strategies on its product pages. The brand enhances customer confidence by adding a small green checkmark and labels beneath each review, assuring potential buyers before they make a purchase.

Create text based CTAs within blog posts 

While incorporating CTAs in a blog post is considered as a best practice, they can sometimes fail to motivate visitors to take the desired action. This is often attributed to “banner blindness,” where people overlook banner-like information on websites. Additionally, site visitors may only sometimes read an entire blog post but skim through it. In such cases, a different approach is needed. 

This is where text-based CTAs prove valuable. HubSpot tested using text-based CTAs – standalone text lines linked to landing pages, as H3 or H4 headings – to determine if they could convert more traffic into leads than traditional CTAs placed at the bottom of web pages. A limited test of 10 blog posts found that while end-of-post banner CTAs contributed only 6% of the leads generated, anchor-text CTAs alone accounted for up to 93% of a post’s leads.

Reduce page loading time

Website’s loading times directly impact user experience. Visitors expect websites to load quickly; slow loading times can lead to frustration and high bounce rates. Furthermore, site speed is a ranking factor for search engines like Google, so a slow website can negatively affect your search engine rankings, potentially leading to lower organic traffic. 

Optimizing your website’s loading times is not just about improving user experience; it’s also about maintaining search visibility, reducing bounce rates, and maximizing conversion rates and revenue.

E-commerce Conversion Rates by Industry 2023


This industry maintains a respectable average conversion rate of 1.70%. However, it also grapples with a notably high average cart abandonment rate of 76.39%.

E-commerce Conversion Rates by Industry 2023

Moreover, the fashion industry is poised for substantial growth, with a projected valuation of $672.71 billion by 2023. Fashion e-commerce has thrived thanks to enhanced brand accessibility and a more personalized shopping experience.

Electronics and home appliances

While the average e-commerce conversion rates across industries tend to be lower, the electronics and home appliances sector stands out with a 2.41% average conversion rate. What sets this industry apart is its ability to generate a substantial average revenue per user, averaging $111.6.

Electronics and home appliances

However, it’s worth noting that this sector faces challenges in retaining shoppers and managing returns effectively. Customers may need help resolving issues, leading to occasional negative reviews regarding customer service.

Home decor

Earlier, shoppers often hesitated to purchase furniture and related items online due to concerns about cost and product quality. However, the landscape shifted significantly during the pandemic when many consumers found themselves confined to their homes and unable to visit physical stores for furniture shopping. This surge in demand led to a notable increase in sales for home decor brands.

Home decor

Home decor stores maintain a respectable average conversion rate of 1.04% as the industry has stabilized. However, they also grapple with a relatively high cart abandonment rate of 80.01%.

Personal care products

While many industries contend with relatively low average e-commerce conversion rates, personal care products stand out with an impressive 3.17% average conversion rate.

Personal care products

Here are some noteworthy statistics:

  • The beauty industry’s value reached $483 billion in 2020 and is projected to surge to $716 billion by 2025.
  • The health and beauty category is set to experience a significant compound annual growth rate (CAGR) of 12.1% from 2021 to 2026.
  • Brands in the health and beauty segment have witnessed a substantial post-Covid increase in online sales share, rising from 16.5% to an anticipated 23.3% by 2025.

Cars and automobile parts

Like other expensive products, the automotive industry experienced increased sales during the pandemic.

Cars and automobile parts

Some statistics to know:

  • 61% of consumers are willing to purchase cars online after the pandemic.
  • The search interest for “auto parts store” has grown by over 197% in the past ten years.
  • 67% of customers read the returns and warranty policies before purchasing.

Food and beverages

While the average e-commerce conversion rate remains relatively consistent across various industries, the food and beverage sector tends to maintain a modest 1.37% average conversion rate.

Food and beverages

Online shoppers approach the purchase of food and beverage with a mix of convenience and caution. They appreciate the convenience of online shopping but are equally concerned about product quality. Loyalty to favorite stores often leads to hesitation when trying new brands.

Additionally, shoppers in this category value discounts and consider benefits like free shipping and hassle-free returns as standard expectations.

Pet care

The industry maintains a respectable average conversion rate of 1.75% in pet care. What’s particularly intriguing is that a significant majority of their sales, approximately 69.5%, are generated through mobile devices.

Pet care

Despite these positive aspects, pet care businesses need help achieving substantial conversions. Customers frequently establish strong loyalties to their preferred stores, which makes them hesitant to switch brands or providers.


By carefully optimizing your website, understanding your audience, and using the appropriate tools and techniques, you can improve user experience, reduce cart abandonment, and ultimately increase your profits. 

Remember, conversion rate optimization is not only about numbers; it’s about creating value for your customers and building trust. As you commit to this process, your e-commerce store will be well-equipped to thrive in the competitive digital landscape, providing a seamless shopping experience and robust business growth.

IMP provides digital marketing services for global ecommerce companies. Our solutions help businesses increase their profits sustainably and reduce dependency on paid media.