7 {{ upvoteCount | shortNum }}
7 {{ upvoteCount | shortNum }}

Is There An Average Conversion Rate In Ecommerce?

by MikeDM
7 replies
  • ECOMMERCE
    • |
Hey Guys,

This may be a stupid question but I was wondering if there were average conversion rates (visitors to site vs purchases made) within the ecommerce/dropshipping world?

I am currently driving traffic from Facebook and would love to have some metrics to compare to!

Thanks in advance

Michael
#average #conversion #ecommerce #rate
  • Profile picture of the author Acornia
    Actually it's a smart question which is why no-one asks it, yes, 2.5% give of take a little bit. The problem is that the type of product shifts the conversion substantially, so Amazon Prime members convert 74% whereas a new small shopify store will be lucky to get 0.5%. A lot comes down to trust, the more they trust your site the higher the conversion will be. For reference, the average Amazon order value is $112, you can do some very interesting things with those two stats.
    {{ DiscussionBoard.errors[10808097].message }}
    • Profile picture of the author MikeDM
      Originally Posted by Acornia View Post

      Actually it's a smart question which is why no-one asks it, yes, 2.5% give of take a little bit. The problem is that the type of product shifts the conversion substantially, so Amazon Prime members convert 74% whereas a new small shopify store will be lucky to get 0.5%. A lot comes down to trust, the more they trust your site the higher the conversion will be. For reference, the average Amazon order value is $112, you can do some very interesting things with those two stats.
      Great stuff - I kind of thought that it would be very difficult to average out due to product differences and demand etc.

      These numbers are very useful though, so at the moment the Shopify store I launched 2 days ago has had 90 visits with 1 sale leaving me at 1.11% conversion, if 0.5% is a good starting number then I am happy with that :-)

      Thanks for the answer
      {{ DiscussionBoard.errors[10808464].message }}
  • Profile picture of the author dave_hermansen
    It comes down to multiple variables, the most significant being average product price and referral source. Our experience shows that sites that sell things with an average price of $150 or less generally convert at about 2% from organic search, sites selling things from $151 to $300 convert at around 1.5% from organic search, $301 to $500 at about 1% and $500 or higher at anywhere from .5% to 1% - the higher the price, the lower the conversion rate.

    It is also important to note that, generally speaking, men will purchase things that cost up to $300 without thinking much about it and women tend to top out at about $150 before they start to think about the purchase.

    How people got to your website has a dramatic effect on conversion rates. It's different depending on the niche, but social converts at an extremely low rate of about a tenth of a percent, which is understandable; nobody goes to a social network looking to buy something. There are some niches that have very devoted groups that will convert a little better than that, socially. Google Shopping ads convert a little better than organic search because people have already seen the price and the product before they click. Our experience is that Google text ads convert at a slightly lower rate than organic search. Referrals from other people/websites convert the best of all.
    Signature
    BizSellers.com - The #1 place to buy & sell websites!
    We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
    {{ DiscussionBoard.errors[10808729].message }}
    • Profile picture of the author MikeDM
      Originally Posted by dave_hermansen View Post

      It comes down to multiple variables, the most significant being average product price and referral source. Our experience shows that sites that sell things with an average price of $150 or less generally convert at about 2% from organic search, sites selling things from $151 to $300 convert at around 1.5% from organic search, $301 to $500 at about 1% and $500 or higher at anywhere from .5% to 1% - the higher the price, the lower the conversion rate.

      It is also important to note that, generally speaking, men will purchase things that cost up to $300 without thinking much about it and women tend to top out at about $150 before they start to think about the purchase.

      How people got to your website has a dramatic effect on conversion rates. It's different depending on the niche, but social converts at an extremely low rate of about a tenth of a percent, which is understandable; nobody goes to a social network looking to buy something. There are some niches that have very devoted groups that will convert a little better than that, socially. Google Shopping ads convert a little better than organic search because people have already seen the price and the product before they click. Our experience is that Google text ads convert at a slightly lower rate than organic search. Referrals from other people/websites convert the best of all.
      This is very useful - thank you!

      Think I will have to look into google shopping ads then, am just working through SEO for the site now.

      Most of the items I am selling are low ticket gifts (£10-£20) - should the rate be higher for that?

      We made 2 more sales overnight so are now sitting at 2.4% conversion
      {{ DiscussionBoard.errors[10809035].message }}
      • Profile picture of the author dave_hermansen
        Originally Posted by MikeDM View Post

        This is very useful - thank you!

        Think I will have to look into google shopping ads then, am just working through SEO for the site now.

        Most of the items I am selling are low ticket gifts (£10-£20) - should the rate be higher for that?

        We made 2 more sales overnight so are now sitting at 2.4% conversion
        Typically, we don't even consider advertising unless we are making at least $50 profit on an item.
        Signature
        BizSellers.com - The #1 place to buy & sell websites!
        We help sellers get the MAXIMUM amount for their websites and all buyers know that these sites are 100% vetted.
        {{ DiscussionBoard.errors[10809954].message }}
    • Profile picture of the author Diskretni
      Originally Posted by dave_hermansen View Post

      It comes down to multiple variables, the most significant being average product price and referral source. Our experience shows that sites that sell things with an average price of $150 or less generally convert at about 2% from organic search, sites selling things from $151 to $300 convert at around 1.5% from organic search, $301 to $500 at about 1% and $500 or higher at anywhere from .5% to 1% - the higher the price, the lower the conversion rate.

      It is also important to note that, generally speaking, men will purchase things that cost up to $300 without thinking much about it and women tend to top out at about $150 before they start to think about the purchase.

      How people got to your website has a dramatic effect on conversion rates. It's different depending on the niche, but social converts at an extremely low rate of about a tenth of a percent, which is understandable; nobody goes to a social network looking to buy something. There are some niches that have very devoted groups that will convert a little better than that, socially. Google Shopping ads convert a little better than organic search because people have already seen the price and the product before they click. Our experience is that Google text ads convert at a slightly lower rate than organic search. Referrals from other people/websites convert the best of all.
      Thank you for this,it is really informative,I didn't know some of this stuff.
      Signature
      "Grind now, relax later!" - Me
      {{ DiscussionBoard.errors[10811211].message }}
  • Profile picture of the author dburk
    Hi MikeDM,

    Yes there is an average, and it is different for every vertical market niche, different for every traffic source channel, and different for every device type. A better question to ask is what is the benchmark average for my niche, for my traffic channel, for my users' device type, in my geographic location.

    You can get that data from Google Analytics' Benchmark Report.
    Signature

    * Get Results - Outsource Your PPC Management |
    *     Don Burk Advertising & Marketing - www.donburk.com

    {{ DiscussionBoard.errors[10811153].message }}

Trending Topics