How to Improve Ecommerce Conversion Rates? 20 Proven Strategies
Dive into proven strategies to enhance your online store's conversion rates. Whether you're just starting out or looking to outperform the competition, discover 20 actionable tips to ensure potential customers don't just browse but buy. Don't miss out on your slice of the $5.7 trillion ecommerce pie!
Are you putting in the marketing work for an ecommerce store, but your conversion rate won’t budge? Discouraging conversion rates are an age-old problem, and the competitive industry isn’t helping. The good news is that online sales are booming. In 2022, ecommerce sales generated $5.7 trillion. So, there’s plenty of business to go around. But how do you get your slice of the pie?
Every time visitors land on your site or social media accounts and leave, it’s a missed opportunity. Potential clients are skittish. So, you need to carefully coax them in with a fully optimized experience. For example, have you checked your site’s load time? Installed click-to-call widgets? Or simplified the checkout process?
If the answer to any of those questions is no, there’s work to be done. So, dive into our 20 tips to reach ecommerce conversion optimization.
What are Conversion Rates?
Conversion rates refer to the percentage of visitors who perform a desired action. For example, your sales conversion rate would be the total number of purchases divided by total visitors. If 1,000 visitors land on your site and 26 make a purchase, your conversion rate would be 2.6%.
Conversion rate percentage formula: (Number of desired actions/number of visits) x 100.
What is a Good Ecommerce Conversion Rate?
Conversion rates are dependent on industry, target audience, and products. So, a good ecommerce conversion rate may vary for different businesses. However, the average global e-commerce conversion rate is 1.64%. Keep in mind that the average is constantly fluctuating. But it’s a helpful benchmark to compare your performance.
A healthy conversion rate in the ecommerce market is at least 3%. On Shopify, the top 20% of stores have an average conversion rate of 3.3% or higher. So, whether you’re below the global average or under 3.3%, there’s room to improve.
20 Ways to Improve Ecommerce Conversion Rates
1. Enhance website speed
When it comes to website speed, visitors have high expectations. According to Akamai, each second of load time drops conversion by 21.8% for computers, 20.5% for mobile devices, and 17.8% for tablets. Those are huge percentages of potential customers that leave before you have a chance to convert. So, what load time should you aim for?
Shoot for a load time of under two seconds. According to Google, the rate of bounce increases by 32% when load time goes from 1 to 3 seconds. When you’re designing your website, frequently check to see how new features impact load time. It doesn’t matter how nice your site looks if no one sticks around to see it.
Tips to reduce load time:
- Optimize and resize images.
- Choose a hosting provider known for speed.
- Cache your website (including browser caching).
- Avoid redirects.
- Simplify your site’s coding.
- Cut out unnecessary plugins.
2. Make the “Add to Cart” button prevalent
You lured in a customer, and they found the right product, but–uh oh! Where’s the Add-to-Cart button? Not giving your customers an easy buying process is a recipe for lost business. So, think of the button as a call-to-action (CTA). You want to make the shopping experience as seamless as possible. A clear add-to-cart button is a necessary way to do that.
Make the button a color that corresponds with your brand’s color. The best color is the one that stands out the most from the background. If your background is white, your button should not also be white.
Don’t just add the button to products. The CEO of SoftwarePundit also suggests adding it to category pages. It makes the shopping flow smoother for customers who already know what they want.
Use a big add-to-cart button. In general, the bigger the button, the better. Of course, you don’t want to jeopardize your aesthetics. But make sure the button stands out!
Make the cart available on every page.
Add-to-cart buttons with round edges are more appealing than sharp edges.
3. Simplify the checkout process
The checkout process needs to be as easy as possible for customers. Take a look at your site’s checkout process. How many steps are there? Are there any steps that can be combined or eliminated? According to Shopify, 18% of shopping carts are abandoned because of a complicated checkout page. So, as the saying goes: Keep it simple, silly!
One way to keep it simple is by allowing guest checkouts. Forcing a customer to create an account before checking out is problematic. In fact, 43% of customers prefer a guest checkout. So, why not tailor the purchasing process to their liking?
Here’s an example of a complicated checkout process:
- Cart summary.
- Account creation.
- Shipping info.
- Billing info.
- Shipping method info.
- Coupon entry.
- Order review.
- Payment confirmation.
- Account confirmation.
- Thank-you page.
Now that's a little long, isn't it? How about we make it shorter? Here’s an example of a simplified checkout process.
- Cart summary.
- Shipping and payment page.
- Review and confirmation page.
- Thank-you page.
Knowing which checkout process is more efficient isn’t rocket science. So, get rid of the necessary steps, and combine steps when possible! Your conversion rate optimization will thank you!
4. Showcase high-quality product imagery
If you want customers to take your company seriously, then high-quality product photos are a must. In the online world, there’s no physical interaction with products. High-quality photos act as a substitute and help build customers’ trust.
According to a survey by Weebly, 75% of participants said product photos are very influential. The good news is that it doesn’t take much work to upgrade product photos. Most smartphones are sufficient to take high-quality pictures.
Here are some tips to easily upgrade your product imagery:
- Use proper lighting.
- Invest in a quality camera (a smartphone or camera will do the trick).
- Stage an appealing background. It can be as simple as a white canvas.
- Stick to a template. Similar products should have similar photography aesthetics.
- Include different angles (close-ups, wide angles, etc.)
- Include images of packaging and extra.
- Retouch images in editing software like Lightroom or Photoshop.
- Analyze competitor’s product imager.
5. Price products competitively
Knowing your worth is important, but so is competitive pricing. Price yourself too high, and you may lose sales. Price yourself too low, and you may be unable to stay afloat. Appropriate price points will attract price-conscious shoppers. It’s also important so that customers perceive they’re getting a good deal. Research has shown that clients will be more satisfied if product value matches or exceeds expectations.
Here are four ecommerce pricing strategies.
1. Cost-based pricing
Cost-based pricing takes production costs into account to price products. The cost of aspects like materials and freight is added to desired profits per unit to find a price. This approach doesn’t directly focus on market conditions or customer behavior. Instead, it focuses on the price needed to sustain operations.
A company sells sunglasses. The product costs $5, packaging costs $4, and freight costs $3. In total, it costs $12 to produce and ship one pair of glasses. If the company wants to earn $5 per unit, it will have to price the product at $17.
2. Dynamic pricing
Dynamic pricing takes a flexible approach. Product prices are based on factors like supply and demand, competition, customer behavior, and even the time of the day. Rapidly adjusting prices allows you to take advantage of market fluctuations. It is especially effective in industries with frequent supply and demand changes. Some ecommerce platforms already have dynamic pricing tools.
3. Competitor-based pricing
Competitor-based pricing is based on your competitors’ prices. You have the option to match, undercut, or exceed their pricing. This approach allows you to strategically position your products based on your goals. Of course, it’s crucial to value the actual costs of your ecommerce business. If matching competitors’ pricing puts you in the red, think twice.
4. Consumer-based pricing
Consumer-based pricing focuses on client perception. The prices are based on the value your products give customers, which is open to interpretation. For example, including premium packaging may give the impression of a higher-valued product. That allows for higher prices even though the product is the same as your competitors.
You see this all the time in grocery stores. Products like sunscreen with well-known brand names cost more than store-brand products. But the ingredients are the exact same. People are willing to pay more for the pricier products because they believe it has more value. That’s how consumer-based pricing works.
6. Recover abandoned carts
Don’t get discouraged by abandoned carts. Oftentimes, customers select items, get distracted, and forget what they are doing. In fact, around 81% of all carts are abandoned. However, you have an opportunity to recover those carts.
Sending out reminder emails to clients of an abandoned cart can turn the whole situation around. SaleCycle found that nearly 40% of abandoned cart reminder emails are opened–that’s significant. Discarding these carts is a missed opportunity for ecommerce conversion optimization.
A major benefit of abandoned carts is that you know what the customer wants. In the reminder email, you can offer discounts, incentives, or enticing information related to specific products. So, think of abandoned carts as hot leads ready for the taking!
7. Spellcheck your website
Nothing stinks of unprofessionalism like typos. Checking spelling and grammar isn’t a big ask. Failing to do so can be detrimental to your ecommerce business. A survey found that a landing page with errors had 85% more visitors leave without clicking a single page. Take the time to review preexisting content and diligently proofread the new text.
The benefits of error-free content:
- Prevents misunderstandings.
- Leads to higher search engine rankings.
- Contributes to customer trust.
- Creates a better user experience.
8. Post product video demonstrations
Like high-quality imagery, product video demonstrations improve online sales. Users will get a better understanding of the item and see it in action. Videos also give you a chance to highlight unique features. Wyzowl found that 89% of respondents said videos convinced them to make a purchase.
Video demonstrations don’t require a huge budget. A smartphone, simple background, and a free video editor are more than enough to get the job done. Of course, if you have a bigger budget, hiring a professional team may be worth it.
Here are some tips for effective video demonstrations:
- Invest in a quality camera (a smartphone or camera will do the trick).
- Make videos short and engaging.
- Demonstrate real-life scenarios.
- Show off unique features.
- Narrate the video or provide captions.
- End with a call to action.
- Test different video styles.
9. Install a click-to-call pop-up
It’s no secret that better communication between company and customer is good for ecommerce conversions. Installing a click-to-call pop-up on your website allows clients to easily initiate phone calls to representatives. Those reps can then offer real-time problem-solving, guidance through the buying process, and enhanced customer experience. But not all click-to-call pop-ups are the same!
CallPage currently offers one of the most effective click-to-call widgets on the market. Over 1,500 companies use the products, and data shows a +75% increase in conversion rates. Companies can fully customize the click-to-call button and window by changing colors and texts and adding brand logos. Visitors will be prompted to initiate a call and seamlessly transferred to a representative.
Not sure if a click-to-call pop-up is right for you? Then, try CallPage’s free trial! Enjoy seven days of testing the product and see how it can benefit your conversions!
10. Offer coupons
Who doesn’t like discounts? Coupons are an excellent way to entice customers to quickly make a purchase. A survey shows that 39% of shoppers will buy a product sooner than planned because of coupons. And another 39% will purchase a brand they normally wouldn’t purchase from. Coupons are easy to make and typically more affordable than other marketing techniques.
Here are some tips for using coupons for ecommerce conversion optimization:
- Offer limited-time coupon codes to create urgency.
- Send coupons in abandoned cart reminder emails.
- Offer coupons in a rewards system.
- Send birthday coupons.
- Set minimum purchase prices for coupons to become valid (spend $100 and get 5% off).
- Offer coupons on social media platforms to engage and attract followers.
Provide clear terms and conditions to prevent misunderstandings and upset customers.
11. Write detailed product descriptions
Don’t think spending too much time on your product descriptions is worth it? Think again. Salsify asked buyers how much they valued product content. Their answers? Well, 87% reported that product content was very or extremely important in purchasing decisions. In the survey, the company looked at three content categories: detailed product description, price, and ratings & revises. Behind price, detailed product description was the second most common factor.
Additionally, 50% of the shoppers have returned an item because of poor online item descriptions. So, descriptions aren’t something to dismiss. Instead, they’re a crucial factor in increasing ecommerce conversion optimization. So, how do you step up your product content?
Here are some tips to improve your product descriptions:
- Tailor your language to your target audience.
- Be descriptive. Describe the product without vague wording.
- Include key features and benefits. What does the product do or solve?
- Make the content easily digestible. Consider using bullet points.
- Include technical specifications.
12. Craft a compelling call-to-action (CTA)
Including CTAs on your product pages and category pages can be the difference between a sale and a lost client. But a dull, generic CTA isn’t going to cut it. The text needs to be enticing, captivating, motivating. The more personalized the CTA, the better.
In fact, HubSpot discovered that personalized CTAs had a 202% higher conversion rate. Personalizing the CTA requires a full understanding of your audience. If you’re selling products for parents with young children, tailor the CTA to them!
For example: Calling all super parents! Shop X knows how demanding parenting is, and we’re here to help! We’re offering 25% off all kid clothing to take some weight off your shoulders. Shop now and dress your little ones in the best!
Finding the right CTA text takes a bit of tweaking. But, if you can find the right words, it can have a huge impact on ecommerce conversion optimization. When the company PartnerStack changed its CTA from Book a Demo to Get Started, it saw a 111.55% conversion rate increase. So, play around with the wording to see what works best.
13. Entice with free shipping deals
Extra fees are a huge threat to your ecommerce conversion optimization. In one study, 48% of shoppers stated that shipping and taxes caused them to abandon their carts. Taxes are a must, but your shipping policies can be flexible. One highly effective method to please buyers and increase sales is offering free shipping!
Statista looked at the effect of free shipping on buyers’ decisions in 2017; it found that free delivery was a significant factor for 73% of respondents. Free shipping doesn’t always have to be something you offer. Maybe it’s a tactic you use during slower times of the year.
Here are some free shipping strategies to consider.
Offer free shipping when certain items are purchased together. Bundle deals are a great way to boost conversions and items purchased per customer. Consider products that are high in demand to generate interest.
First-time buyer offer
Entice new buyers with free shipping. Unlike other ecommerce conversion optimization strategies, you pay once you have a customer, not a potential customer. Of course, you could also include the offer in your standard marketing campaigns.
Offer free shipping if customers spend a certain amount. For example, if a customer spends +$60, shipping fees are removed. This encourages customers to potentially spend more than they otherwise would have. Create more urgency by making it a limited-time offer.
Hidden shipping fee
If you don’t want to lose money by offering free shipping, hide the fees in the product price. Increase the prices by the cost of shipping. You run the risk of losing customers to competitors with lower prices. But the idea of free shipping will still entice customers.
Use free shipping as a seasonal offering. Tying the offering to holidays or special events creates a buzz of excitement. Have fun with it, and create engaging theme-based promotions. For example, on Valentine’s Day, your slogan could be like this: This holiday season, we’re spreading the love by offering free shipping!
14. Implement loyalty programs.
Loyalty programs don’t just build a community around your brand; they also increase conversion rates. Don’t believe it? Well, let’s let the numbers do the talking!
Loyalty programs statistics:
- 79% of shoppers say loyalty programs make them more likely to be repeat customers.
- 39% of shoppers in loyalty programs pay more for a product, even if there are cheaper options.
- 73% of shoppers feel more inclined to recommend companies with strong loyalty systems.
- Loyalty programs could lead to a 319% increase in average order quantity.
Creating an effective loyalty program is crucial. Understand your customers, offer rewards that appeal to them, and make it easy to enroll. Once you have the right formula, watch your repeat business and customer engagement skyrocket!
15. Be strategic on social media
We’re living in the digital age. Companies that aren’t utilizing social media are missing out on major benefits. Why? Well, you can build customer trust, promote products, run campaigns, and interact with potential customers. Not to mention, customers value social media posts.
According to Forbes, 78% of survey respondents said that companies’ social media posts influence their purchases. So, what you post matters. Customers want to see professional, compelling social media content. Think of apps like Instagram as a portfolio of catalog. They’re extensions of your ecommerce website, and you should treat them as such.
Tips to improve your Instagram:
- Write an engaging bio. Keep it clear and concise, and add a link to your ecommerce stores.
- Post high-quality images and videos (smartphones are sufficient).
- Maintain a coherent aesthetic.
- Use hashtags, but don’t overuse them (try 3 to 5 hashtags per Instagram post).
- Take advantage of Instagram Shopping. It allows visitors to purchase products directly from your profile.
- Collaborate with influencers.
- Respond to comments to gain credibility and create brand loyalty.
16. Create urgency (time-limited offers)
Creating a bit of urgency is a highly effective strategy to boost ecommerce conversion optimization. Customers will be inclined to make purchases quicker to avoid FOMO – fear of missing out. Some businesses have seen huge spikes in sales thanks to this method. For example, ConversionXL saw a 332% increase in sales using a limited-time offer.
There are two types of urgency: real and implied. Real urgency refers to things like a 24-hour limited-time offer. Implied urgency refers to things like using now or today to encourage purchases. Real urgency is more effective than implied urgency; however, it’s not always practical to always use it. So, don’t disregard the benefits of implied urgency.
Here are some ways to create urgency.
Limited time offers
Create a special offer that’s only available for a limited period of time. For example, make your products 30% off for a week. Make sure to clearly state the start and end dates. The shorter the offer, the more urgency you create.
Low stock displays
Create urgency by showing the remaining quantity of products. Or show a Low Stock display next to items. If customers know a product will soon be out of stock, they’ll be encouraged to buy sooner.
Offering seasonal products is similar to limited-time offers. However, in this case, you don’t have to offer a discount. Time sensitivity will act as a motivator for shoppers, knowing the product will become unavailable.
Early bird discounts
Offer a discount or reward to shoppers who purchase an item early. For example, reward the first 100 customers with a 25% discount. Rewards are also a great way to increase customer satisfaction and loyalty.
17. Mobile optimization.
Today, online shoppers use their phones more than computers. Statista uncovered that mobile retail sales made up 72.9% of worldwide ecommerce sales in 2021. That number is up 20% since 2016, and the trend shows no signs of slowing down.
So, it’s crucial to optimize the shopping experience for mobile users. If your mobile sites are cluttered, slow to load, or difficult to navigate, that’s a problem. Failing to optimize mobile functions will significantly reduce your number of potential buyers.
Tips to optimize the mobile shopping experience:
- Make the mobile experience the top priority when designing your site.
- Minimize features that slow loading times.
- Optimize images to enhance loading times.
- Make buttons large enough for easy tapping.
- Implement mobile payment options (Apple Pay, PayPal, Google Pay, etc.).
- Reduce or eliminate disruptive pop-ups.
- Frequently check your ecommerce site on a mobile device.
18. Highlight customer reviews and ratings.
Shoppers value what preexisting customers have to say about a product. In one study, displaying five product reviews increased purchase likelihood by 270%. It’s important to note that posting more than five reviews did little to enhance ecommerce conversion optimization.
Reviews are important for a handful of reasons.
- They provide a deeper understanding of the product.
- They establish trust and validate a product’s benefits.
- They often address common concerns.
- They create a sense of community between customers.
Another interesting finding is the effect displayed reviews have on differently priced products. Research uncovered that displaying reviews on lower-priced products increased conversation rates by 190%. But displaying reviews on higher-priced products increased conversion rates by 380%.
Don’t worry about only showing perfect five-star reviews. In fact, showing ratings between 4.0 to 4.7 has a more positive effect than all 5.0 reviews. Customers grow suspicious when products have perfect ratings. So, avoid dishonestly fluffing product scores–it doesn’t do you any good.
19. Accept diverse payment methods.
Offering diver payment methods is a simple way to boost conversion rates. Some of the most popular payment methods are debit/credit, Apple Pay, PayPal, Google Pay, and bank transfers. Failing to accept diverse payment methods increases the risk of abandoned carts.
The company Mollie surveyed 1,000 customers and discovered 9 of 10 shoppers had abandoned carts due to a lack of payment options. Part of that is because people are strict about how they pay. Of respondents who preferred PayPal, 38% said they would abandon the cart if it weren’t an option.
Accepting a range of payment methods accommodates a range of customers. You should prioritize the most popular methods used by your target audience. However, don’t ignore other alternative methods that could encourage more conversions.
20. Utilize A/B tests.
The best way to know how different strategies work is to test them against each other. That’s where A/B testing comes into play. A/B testing, also known as split testing, refers to comparing two versions of your ecommerce store. For example, you may try two different call-to-action buttons and see which performs better. The results allow you to make data-based decisions that lead to higher conversion rates.
HubSpot found that doing A/B testing of a landing page led to 20 to 25% more leads for ecommerce businesses. A few small tweaks, such as changing button colors or headlines, can have huge impacts. But you have to test and compare to find out.
Testing two variants should be done at the same time. Traffic and conversion rates are impacted by small factors like the time of the year. Failing to test two versions at the same time could lead to inconclusive results. So, run two variations simultaneously for more refined results.
Final Thoughts on Ecommerce Conversion Optimization
Increasing conversion rates takes time and effort. If you’re unhappy with your current results, fear not! Implementing these 20 tips is a great start to turning things around. Remember that experimenting and testing are key. The more you make adjustments and follow the data, the better the results will be.
CallPage’s Click-to-Call widget is a tried-and-true method to boost conversion rates. See what the product can do for your ecommerce conversion optimization with a free trial today! The process is as simple as downloading the app, installing it on your page, and enjoying new leads. Get ready to take your ecommerce conversions to the next level!
Check out other posts