How to calculate the conversion rate in e-commerce

Knowing how to calculate the conversion rate in e-commerce is a key issue for any entrepreneur or company thinking of opening an online store. It is through the conversion rate that we begin the analysis of Key Performance Indicators that determine the efficiency of an e-commerce operation or any other site in the online environment that has its main source of income.

The problem is that the discussion on how to calculate the conversion rate in electronic commerce involves, beyond the basic formula, several different approaches from the accounting or strategic point of view.

What is the conversion rate?

Before starting to talk about how to calculate the conversion rate in e-commerce, you have to be clear about what a conversion in e-commerce is. In e-commerce it has a conversion rate when a particular objective of a campaign is implemented.

If we are carrying out an online marketing campaign where the final objective is to sell a particular product, the conversion rate is said to be the percentage of times that an online sale did not materialize, according to the stimuli of the Bell.

How to calculate the conversion rate of a virtual store

The concept of E-commerce conversion factor is almost simple. The basic calculation is:

Conversion Rate = Sale number / Total visits

Suppose a virtual store that has a sale with every hundred visits. In this case the conversion rate would be 1%.

In Latin America, the average conversion rate for electronic commerce is 1.5%, which is a very low value if we take the American standard electronic commerce, which not infrequently presents rates of 5%.

Another aspect that must be considered is that in a virtual store it can also have different types of conversion of the sections of the store, so it is good to carefully analyze the results of each campaign, so that we are not fooled by the statistical noise.

The importance of the conversion rate in E-commerce

The conversion rate is considered one of the key performance indicators in e-commerce and gives us a good idea of ​​the evolution of the business. So this measure needs to be closely monitored and carefully evaluated.

How to increase the conversion rate of a virtual store?

The first step to increase the conversion rate of e-commerce is to increase the number of visits to the virtual store with qualified traffic and a true potential for conversion.

The second step is the optimization of processes, such as checking, largely responsible for this indicator. If the closing of the purchase is confusing and does not respond to the needs of the user, with easy navigation and the diversity of the forms of payment, which hardly have a good performance in sales.

Now that you know how to calculate the conversion rate in eCommerce, you can now implement event registration routines and analyze the performance of your online store.

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