Shopify is a robust e-commerce platform that enables business owners to sell their products online without starting from scratch. Shopify, founded in 2006, is an easy-to-use software for managing an online business to small and large businesses.
Calculating the Conversion rate is one of the most crucial aspects of any eCommerce business. There is fierce competition in this field, with over 820,000 active Shopify stores. Although you won’t make Shopify profitable overnight, there are a few things you can do to boost conversion rates and sales.
Most businesses don’t think about their Shopify conversion rate. This is a mistake because focusing on conversions boosts the profitability of any marketing campaign you run. Hire Shopify plus developers and get started. This guide shows you how to increase your Shopify Conversion Rate page-by-page.
What Is the Conversion Rate of Your Website?
You can know the conversion rate of your Shopify stores by knowing the number of unique visitors your site gained during a certain period and the number of conversions it received. You can easily know by dividing your conversions by the number of visitors (which shows how many conversions you can expect from each visitor). Simply multiply that number by 100 to get a percentage (showing how many conversions you can expect from 100 visitors).
Shopify automatically calculates your store’s conversion rate, and you can see it in your store’s Analytics dashboards. The widget divides conversions into three stages, allowing you to see how many people visited your shopping cart, checkout, and “thank you” pages.
When most marketers think about conversion rate optimization, they ask themselves, “How do I get people to buy?” The answer isn’t so straightforward. Conversion rates differ depending on the type of product and the industry. Clarity, simplicity, credibility, urgency, and social proof are the five main principles to help any website convert better. -You can easily increase the conversion rate for your business for the customers you work with by using the right combination of tools and techniques. The key is to get a full picture of your customers, their behaviors, and user experience.
The following are some of the advantages of focusing on increasing CRO:
- Increase the amount of money you make and the number of customers you have.
- Easily persuade your visitors to buy with little to no effort.
- Increase the rate of engagement by a significant amount.
- Determine which aspects of your site are most popular with visitors and improve them for even better results.
Why Should You Be Concerned With Your Conversion Rate?
The most cost-effective way to increase your revenue on Shopify is to increase your conversion rate. Instead of spending your marketing budget on advertising that may degrade the quality of your traffic, a high conversion rate strategy is a surefire way to increase sales. There are additional reasons to concentrate on conversions; improving this aspect of your business has some beneficial side effects.
Customer Insight: Your conversion rate indicates whether or not your store provides sufficient value to those who visit it. This metric can reveal a lot about your products, prices, and the store itself if you pay attention to it.
User Experience: Improving your conversion rate often necessitates considering your user experience (UX). Long-term benefits can be gained by reducing ambiguity, demonstrating your credibility, and emphasizing the value of your products.
Remarketing: As any marketer will tell you, former customers are the best audience for future sales. Remarketing is an important part of a successful marketing strategy, but it can’t happen until the first sale is made. It’s more cost-effective to convert a few more hesitant browsers into customers (and then remarket to them) than to spend a lot of money on marketing to strangers.
The most significant disadvantages of a conversions strategy are the skills and time required to generate more sales. Fortunately, several excellent resources are available to assist store owners in achieving their goals faster.
What is a Good Shopify Conversion Rate?
Littledata, a Shopify benchmarking and analytics service, conducts regular surveys across thousands of stores to determine average order values (AOV) and conversion rates. According to their findings,
- The average order value (the amount spent by each customer within a month of their first purchase) on Shopify in 2019 was $63.50.
- The conversion rate was only 1.5 percent on average.
- This is lower than the most recent eCommerce conversion rate benchmarks, around 1.85%.
- The average conversion rate increased to 1.6 percent in May 2020. Even though this number is higher than in 2019, it remains below the industry average.
If your Shopify conversion rate is higher than 3.1 percent, you’re in the top 20% of Shopify stores, according to the most recent LittleData reports. Working on your conversion rate will yield a lower return in that case (you should work on something else). However, increasing conversion rates is the most effective form of marketing for stores that convert between 1% and 3% of visitors.
How to Increase the Conversion Rate of Your Shopify Store
At each conversion funnel stage, various factors influence your customers’ decisions. However, it is helpful to divide these various factors into three groups to increase conversions on Shopify:
Trust: can people trust you with their money?
Information: how accessible are the most important details?
Motivation: how much does the customer feel they have to gain?
Friction: How comfortable and secure do you feel?
Consider this: a customer must understand what you’re selling and why they should buy it before making a purchase. More people will complete the process if it is made as simple as possible.
There is no one-size-fits-all approach to improving your conversion rate. You can be more confident about what is working and what isn’t if you take a systematic approach and check your key metrics regularly. These are some tried-and-true methods for making information more accessible, increasing customer motivation, and reducing friction.
To improve your eCommerce conversion rate, you must remove obstacles and systematically increase incentives. The first and most significant barrier to a visitor’s purchase is a lack of Trust. When someone visits your site, they are wary until you reach a trust “threshold.” Even if you offer them something exceptional, they are unlikely to buy before this point. After this point, any improvement in your offer will increase the number of sales you receive.
Improve Clarity and Navigation
Customers must be able to find the products they’re looking for once they arrive on your home page or one of your landing pages. They should also seek out new experiences that may be beneficial to them. They should also see all of the information they need to purchase once they’ve found the product they’re looking for.
Improve Your Motivation
You must answer three important questions for your visitors to increase their motivation:
- What is the need to purchase the item?
- Why should they buy it from you instead of someone else?
- Are you required to buy product now?
That means you must demonstrate to them how unique your store, product, and browsing session are. Motivation is an important part of increasing your Shopify conversion rate, even if it takes careful thought.
Friction is created by every obstacle a potential customer encounters. A customer will abandon the purchase if the friction becomes greater than their motivation to buy. Because convenience is so important in eCommerce, lowering friction is one of the most effective ways to boost your Shopify conversion rate.
Finally, test and learn.
Because conversion rate is a relative figure, it does not always provide a clear picture of your store’s performance. Paid advertising, for example, will usually lower your conversion rate while increasing your overall sales. Even so, focusing on conversions rather than simple acquisition campaigns will improve the effectiveness of the rest of your marketing.
You’ll need the right combination of tools and techniques to achieve long-term results. If you don’t have a way to assess the impact of your design changes, you won’t be able to make them. At the same time, you’ll need to decide what to change using analytics, and A/B testing tool, and some CRO tools. We recommend hiring a Shopify web development company to get the desired results. They can help you make the best strategy and turn your store profitable.