How to Optimize Your E-commerce Conversion Rate

Optimizing the conversion rate on an e-commerce site is a crucial objective for any online entrepreneur seeking success these days. With increasing competition in the digital world, it is essential to ensure that every visitor to your site converts into a paying customer.

In this article, we'll explore effective strategies and tactics for improving your e-commerce conversion rate, from optimizing the user experience to the intelligent use of data and analysis.

If you want to maximize your online sales and provide an exceptional experience for your customers, read on to find out how to turn your website into a successful conversion machine.

What Is Conversion Rate in E-commerce?

The conversion rate is the metric that measures the efficiency of your website in turning visitors into customers. The higher the conversion rate, the greater your success and profits.

A low conversion rate means that, even if there are a large number of people browsing the company's website, the leads are not buying or taking the action you want them to, i.e. there is little conversion of users.

It's important to note that the conversion rate can be measured according to the action you expect from the user. Here are some examples:

• Buying a product;
• Filling in a form;
• Sign up to receive emails and newsletters;
• Button clicks;
• Click to be directed to another specific page, etc.

What is the Ideal Conversion Rate in E-commerce?

A good conversion rate for e-commerce depends on a number of factors, such as the sector in which you operate, the type of product or service offered, the target audience, among others. There is no single conversion rate that is considered ideal for all cases.

But in general, the higher the conversion rate, the better, as it indicates that a greater number of visitors to your site are converting into customers or taking the desired action, such as making a purchase. Nevertheless, it is possible to check an average.

According to the Edrone website, which cites research by Experian Hitwise, while the world average is 1.92%, the e-commerce conversion rate in Brazil is 1.65%. Furthermore, according to data from ALXWeb cited by Edrone, smaller virtual stores can have a conversion rate of up to 1.3%, while famous e-commerces can reach up to 3.7%.

How to Calculate an E-commerce Conversion Rate?

The conversion rate is calculated according to each stage of the marketing funnelas mentioned above. If your objective is attraction, the conversion rate will be measured by the number of hits on your site, for example (top of the funnel).

Moving on a little, we have the middle of the funnel and, at this stage, the objective may be to register leads, and what will measure your conversion rate will be the volume of people who have registered on your landing page.

In the case of the last stage of the funnel, where the goal is the sale itself, the conversion rate can be the number of subscribers to a product or the actual purchase of it, a service, etc.

Regardless of your business model, the calculation should be done as follows: 

(Conversions in the period / total hits on the site) * 100 = conversion rate (%)

So, using the numbers in the example, the formula would look like this:

(1.500 / 5.000) * 100 = 30%

Common Mistakes that Damage E-commerce Conversion Rates

Now that you know the importance of this metric and how to calculate it, we'll show you some mistakes that can make your business's conversion rate more expensive. 

• Too high a shipping price: When shopping online, many people simply abandon their cart after calculating the delivery price, which is too high. Ideally, you want more affordable shipping, and you should look for other suppliers until you find a cost-effective one.
• Uncompetitive or not competitive prices: If your prices are uncompetitive with the market, or barely attractive, the customer may quickly leave the site and/or page when faced with a higher price than they want to pay.
• AnUnoptimized Check Out : A check out with lots of distractions, poor optimization, bugs and errors, or even slow loading, can cause the user to give up on the purchase. In other words, the conversion doesn't happen.
• A Site Without Any Security Seal: When a site has no seal, the user can browse, but if they feel insecure, they may give up on the purchase/action and go to a competitor.
• Wrong Audience Segmentation: Without proper segmentation, you fail to offer your potential customers what they need. In practice, segmentation begins by applying various sections to your site, and you can divide them up by type of customer or product.
• Missed Delivery Deadlines: Every time this deadline is missed, the customer becomes dissatisfied and gives up buying from your brand again. To reverse this scenario, it's important to understand the logistics and process problems, if the delivery is made by the company itself.
• Very slow loading and poor responsiveness: Slow loading can impair the user's navigability and make them quickly give up on any action. What's more, a site that isn't responsive hinders the closing of a purchase.
• Poor stock management: When the product is out of stock, it may be a high number of sales in a few days, and your zero stock was not designed. It's important to have a management system that organizes and plans purchases according to the number of sales.
• Few Payment Methods: If you don't have this flexibility in payment methods, your e-commerce may limit purchases to just that specific method, meaning that the user won't find a variety of solutions to make the purchase.

17 Tips to Optimize the Conversion Rate of Your E-commerce Business

Now you know what a conversion rate is, how to calculate it, its importance and some of the factors that harm it. Not least, we've put together some valuable tips to help you optimize your e-commerce conversion rate.

1. Recreate the Physical Store Experience

Although e-commerce has revolutionized the way people store, with convenience, variety and accessibility, many consumers still miss the tactile and immersive experience that a physical store can provide. And how to do that? 

• Offer Live Chat and Personalized Support;
• Create Loyalty Programs and Giveaways;
• Customize the Home Page based on User Preferences and History;
• Offer detailed product descriptions.

2. Use High Quality Images or Videos

Just as the physical store is designed to attract customers, the design and layout of your e-commerce should be attractive and inviting. Use colors, images and visual elements that reflect your brand identity and create a pleasant atmosphere for visitors.

Make sure that the product images are of high quality and allow detailed viewing. Also, consider including demonstration videos, which help customers better understand the products and their use.

3. Use Secure Checkout

To guarantee the protection of your customers and the integrity of online transactions, the secure is an essential measure for building trust and providing a smooth shopping experience.

By implementing a checkout you adopt practices and features that protect sensitive customer data, such as payment information and personal data. This includes the use of SSL (Secure Socket Layer) encryption to ensure that information is transmitted securely throughout the payment process.

There are also two-step authentication features, which add an extra layer of security by requiring customers to provide additional information to confirm their identity.

4. Inform the Freight Amount Transparently

Take into account the criteria used to calculate the freight, such as weight, dimensions of the package, distance and mode of delivery. This information should be clearly presented to the customer, allowing them to understand how the price was determined.

Offer shipping options with different delivery times and prices. This gives customers the freedom to choose the alternative that best suits their needs, taking into account the amount to be paid and the waiting time.

Always make the shipping price visible throughout the entire process of browsing the site, from the product page to the shopping cart. That way, the customer will be completely clear about the additional cost and will be able to assess the total value of their purchase properly.

5. Promote Free Shipping to Everyone

One of the advantages of advertising free shipping to everyone is that it attracts the public's attention. When they see this possibility, consumers are more likely to explore your online store and consider buying the products they want.

By eliminating this additional cost, you reduce friction in the buying journey and encourage customers to finish the process. This results in increased sales and turnover for your business, above all by improving your customer's shopping experience and taking the worry out of high additional costs.

One of the ways to publicize it is to highlight the information in strategic places on the site, such as banners on the home page, pop-ups or on the product details page. Use persuasive messages that emphasize the benefits of this offer, such as "Enjoy free shipping on all your purchases" or "Save with free shipping throughout Brazil".

6. Prioritize the Recovery of Abandoned Carts

 Abandoned carts can occur due to technical problems, high prices, lack of information or a complicated checkout process. By identifying these obstacles, it is possible to implement improvements to the site, making it more intuitive, transparent and attractive to consumers. 

Another effective strategy is to offer exclusive discounts or free shipping - mentioned above - to encourage customers to complete their purchase. The use of remarketing techniques, such as personalized ads displayed on other websites visited by the customer, can also be an effective way of reminding them of the items left in the cart.

Ads on social media platforms and the Google Display Network to show products left in the cart to customers who have previously viewed them, keeping the brand in mind.

7. Provide Coupons for Cart Abandonment

Offering coupons to customers who have abandoned their shopping cart is an effective strategy for recovering lost sales and encouraging users to complete their purchases. Here are some ideas and examples of how e-commerce can implement this tactic:

• Discount Coupon by Email: Send an automated e-mail to the customer who abandoned the cart, offering an exclusive discount coupon. For example, "Come back now and use the code 'ABANDON20' to get 20% off your purchase.";
• Push notification: If the customer has allowed push notifications, you can send a message with a coupon directly to the user's browser or application, reminding them that items are waiting for them in the cart;
• Recovery Coupon on Site: Upon detecting a cart abandonment, immediately display a pop-up on the site with a discount coupon. For example, "Looks like you forgot something! Use the code 'RETURN10' and get 10% off right now";
• Free Shipping Coupon: Offer free shipping as an additional incentive for customers who have abandoned their cart. For example, "Complete your purchase now and get free shipping using the code 'FRETEGRATIS'";
• Personalized Coupon: Use the customer's name on the coupon to make it more personal and engaging. For example, "Hello, [Name]! Use the code 'VOLTENOW' to complete your purchase with a 10% discount."

8. Offer several payment methods

By offering a variety of payment options, consumers feel safer and more confident when making purchases. Accepting credit and debit cards of different flags is a fundamental step, as these are the most common and widely used methods.

In addition, integrating online payment systems such as PayPal, Apple Pay and Google Payallows customers who prefer these platforms to complete their transactions quickly and easily.

We shouldn't ignore traditional methods such as bank transfer or boleto, as there is still demand for this type of payment. In addition, of course, to the pix, which in some cases may come with some kind of exclusive discount.

9. Use micro-conversions

Micro-conversions in e-commerce are smaller actions taken by visitors to a website that indicate engagement and progress towards a main conversion, such as a purchase. These micro-conversions can be key to improving overall e-commerce performance. Some examples:

• E-mail registration: When a visitor signs up to receive newsletters or updates, showing continued interest in the brand;
• Adding to cart: When a customer places an item in the shopping cart;
• Wish list: When the customer adds products to their wish list, indicating their intention to purchase in the future;
• Click on CTAs: Clicks on call-to-action (CTA) buttons, such as "Learn more" or "See now"show interest in learning more about the products;
• Viewing product pages: When a visitor accesses specific product pages, showing interest in details and features;
• Ratings and comments: The user leaves a rating or comments, helping to build consumer confidence.

10. Take an Omnichannel Approach

This approach recognizes the interconnection of online e offlineallowing customers to browse, buy and interact with the brand fluidly, regardless of device or location.

The channels are synchronized, with information exchanged in real time, when, for example, the customer searches for products on the website, buys them and picks them up in the physical store. Here are some tips on this process: 

• Post-purchase follow-up: After the purchase has been completed, send confirmations and status updates by e-mail or SMS. Also, consider offering after-sales support and asking for feedback to further improve the customer experience;
• Make it easy to switch between channels: Allow customers to switch between channels seamlessly. For example, a customer can start their purchase on the mobile app and finish it on the website without losing their shopping cart;
• Real-time customer support: Offer real-time customer support channels, such as live chat or telephone answering. This will help resolve doubts and problems quickly, improving customer confidence in your company and even sales;
• Integrate your communication channels: Ensure that the different channels, such as website, mobile app, social networks and physical store (if applicable), are integrated. This allows customers to browse and buy on any platform of their choice, without losing important information or purchase history.

11. Offer Simplified Checkout

Make the checkout process easy, avoiding bureaucracy and unnecessary steps. The checkout should be quick, intuitive and secure, reducing the chances of cart abandonment. Check out our tips:

• Reduce Checkout Steps: Eliminate unnecessary steps. Instead of asking for too much information at once, only ask for essential information, such as delivery address, payment option and contact information;
• Allow Guest Checkout: Offer the option to checkout as a guest, so customers don't have to create an account. This speeds up the process for shoppers who want a quick experience;
• Auto-Fill Fields: Use auto-fill technology to reduce the need for customers to type in information. For example, when entering the zip code, the system can automatically fill in the city and state;
• Display an Order Summary: Show a clear summary of the order, including items, quantities, prices and delivery and payment information, for customers to review before finalizing the purchase;
• Flexible Payment Options: Offer various payment options, including credit cards, PayPal, bank transfer, among others, to accommodate customer preferences;
• Keep Security in Mind: Make sure your payment process is secure and complies with data security regulations such as PCI DSS. This is crucial to ensuring customer trust;
• Continuous Testing and Optimization: Conduct usability tests to identify any problems or friction points in the checkout process. Use analysis tools to track customer behavior and make improvements based on hard data;
• Mobile Optimization: Make sure the checkout is optimized for mobile devices, as many customers make purchases on their smartphones. Make sure the fields are easy to fill in on smaller screens.

12. Understand the Importance of the First Purchase

The first e-commerce purchase is a crucial moment for both the consumer and the online business itself. Understanding its importance is fundamental to long-term success.

This is when the user has their first experience with the online store. In the process, they evaluate the e-commerce opportunities, the quality of the products, the prices, special conditions, customer service, etc. And a positive experience encourages customer loyalty, creating a relationship of trust with the brand and stimulating future purchases.

In e-commerce, the first sale opens the door to building a solid customer base. By providing an excellent experience, the online store is more likely to receive positive reviews, comments and recommendations, increasing its reputation and reach in the market.

13. Use exit pop-ups

Pop-ups are windows that appear in the middle of your screen, or in the corners, with some kind of communication. You might be offered a discount coupon for your first purchase, a bonus, a link to a special collection of products (for example, during seasonal shopping periods such as Mother's Day), etc.

As soon as the user moves the mouse towards the x to close the page, the pop-up appears as a way of recovering that user, keeping them on the page for longer, increasing the chances of conversion and, as a consequence, optimizing the conversion rate. It can be used for abandoned carts, lead capture, reminders, coupons, etc.

14. Have a 100% Responsive Online Shop

It is essential that the site is responsive, i.e. it adapts to different devices, such as smartphones and tablets. This guarantees a pleasant user experience and increases the chances of conversion. Check out our tips!

• Responsive Design: Choose or develop a theme or template that is responsive by default. This ensures that your site automatically adapts to different screen sizes;
• Testing on Different Devices: Test your site on a variety of devices and browsers to ensure that it works correctly in different scenarios;
• Adaptive Images: Implement adaptive images, which load different versions of the images based on the device's screen size. This helps reduce loading times on mobile devices;
• Scalable fonts: Use relative units of measurement, such as "in" or "%", to scale fonts and elements proportionally to the size of the screen;
• Hamburger menus: Use hamburger menus (the iconic three-line icon) on smaller screens to save space and make navigation more convenient on mobile devices;
• Buttons and Interactive Elements Suitable for Touch: Make sure that buttons and interactive elements are large enough and spaced appropriately for touch on touchscreens;
• SEO for Mobile: Make sure your site is optimized for mobile search engines, since Google and other search engines give preference to responsive sites in their mobile search results.

15. Implement a Search Bar Visible to All

A search bar that is visible to everyone is an essential tool in any modern e-commerce site. This functionality allows site visitors to quickly find the products or services they want, significantly improving the user experience and increasing the chances of conversion.

As well as putting it in a visible place, make sure it allows for more complex searches, including product names, synonyms, misspellings, etc. The more comprehensive, the better.

And, as we've already mentioned the importance of responsiveness, make sure that the search bar adapts to mobile devices.A good way to make sure your site is offering all these things is to simulate a purchase, as a user experience.

16. Optimize your site's loading time

As we mentioned in the common mistakes that damage e-commerce conversion rates, the loading time of your website plays a critical role in the success of your business. Optimizing this aspect is key to providing a positive experience for visitors and potential customers. Here are some tips for optimizing your site's loading time:

• Choose reliable hosting: Opt for a quality hosting provider that offers good server resources and a solid infrastructure to ensure that your site loads quickly;
• Smaller images: Reduce the size of images without compromising quality. Using the right formats and compression tools will help reduce page load times;
• Cache: Implement an efficient caching system to store static elements of the site in the user's browser. This way, subsequent visits will be quicker, as resources won't have to be reloaded every time;
• Monitor and optimize regularly: Use monitoring tools to analyze site performance and identify bottlenecks. Make regular adjustments to maintain fast and efficient loading;
• Prioritize images: Load the content that is visible to users first and leave the less relevant elements for later. This improves the site's perceived speed.

17. Use Social Proof with Customer Reviews

Adding social proof with customer reviews is an effective strategy for increasing consumer confidence in your online store and influencing purchasing decisions.

Choose a reliable customer review platform that integrates easily with your e-commerce site. Some popular options include Trustpilot, Yotpo, Reevoo and Reviews.io.

After completing a purchase, send an automated email asking customers to leave a review of the product or the shopping experience. Make sure the request is friendly and easy to respond to.

Make the evaluation process simple and quick. Providing a direct link to the review page and an easy-to-fill out review form can increase customer participation. And, offer optional incentives, such as discounts or prize draws, to encourage customers to leave reviews. Remember that reviews must be genuine and not manipulated.

Conclusion

Remember that conversion rate optimization is an ongoing process, so be sure to pay attention to market trends and changes in consumer behavior.

By implementing these tips and avoiding the mistakes mentioned, you'll be on the right track to increasing your e-commerce conversion rate and boosting the success of your online business.

We hope we've helped you find good insights to optimize your conversion rate. The next step is to implement good inventory management, for which we invite you to read our article on E-commerce Solution: Integrating Inventory Management with Paid Media Platforms.