Conversion rate

What is a conversion rate?

The conversion rate is calculated by dividing the number of conversions (typically purchases) by the number of visitors and multiplying by 100. If your online store has 1,000 visitors and 20 of them make a purchase, your conversion rate is 2%.

Formula: Conversion rate = (Number of conversions / Number of visitors) × 100

A conversion doesn’t necessarily mean a sale. It can also be a newsletter sign-up, a completed contact form, or the creation of a user account. However, in the context of an online store, the conversion rate usually refers to the percentage of visitors who complete an order.

What is a good conversion rate?

For Danish online stores, the average conversion rate typically ranges between 1% and 3%. However, it varies significantly depending on the industry, product type, price range, and traffic sources:

• Fashion and clothing: 1–2% — often lower due to uncertainty about sizing
• Electronics: 1–3% — customers compare prices but buy once the decision is made
• Groceries and consumer goods: 3–5% — high purchase intent, short decision-making time
• Niche stores with targeted traffic: 3–6% — visitors are already qualified

It’s important to remember that a “good” conversion rate is always relative. A store selling expensive designer furniture will naturally have a lower rate than a store selling inexpensive everyday items. Always compare against your own industry and your own historical data.

Factors That Affect the Conversion Rate

There are many factors that determine whether a visitor ends up making a purchase. Here are the most important areas to optimize:

Speed and Performance

A slow online store loses customers. Studies show that a delay of just one second in load time can reduce conversions by 7%. Google measures Core Web Vitals (LCP, FID, CLS) as part of its ranking algorithm, and these same metrics directly impact the user experience.

Mobile Optimization

More than half of all web traffic comes from mobile devices. Your online store must function flawlessly on all screen sizes—from navigation and product images to checkout and payment. A good mobile checkout with MobilePay or Apple Pay can make a big difference.

Trust and Security

Online customers won’t buy if they don’t trust the store. Key trust-building elements include:

• Trustpilot reviews and product reviews directly on the product pages
• Clear return policy and shipping information
• Security badges and well-known payment solutions
• Contact information and business registration number (CVR) visible in the footer
• SSL certificate (HTTPS)—this is standard in Shoporama

Product presentation

High-quality product images from multiple angles, detailed descriptions, and specifications reduce uncertainty and returns. Clearly display stock status and delivery times so the customer knows when the item will arrive.

Checkout flow

The fewer steps and the less friction in the checkout process, the more customers will complete their purchase. Offer guest checkout, multiple payment methods, and a clear progress indicator. Avoid surprise fees in the final step.

How to Measure Your Conversion Rate

You can measure the conversion rate using Google Analytics 4 (GA4) or other tracking tools. In GA4, you can view the overall conversion rate and break it down by traffic sources, devices, landing pages, and campaigns.

It’s valuable to see the conversion rate broken down by traffic sources: organic search, paid ads, social media, newsletters, and direct traffic typically perform very differently.

A/B Testing for Better Conversion

The most effective method for improving the conversion rate is systematic A/B testing (split testing). Test one thing at a time to isolate the effect:

• CTA buttons: Color, text, and placement of the “Add to Cart” button
• Product pages: Layout, image size, description format
• Checkout flow: Number of steps, fields, payment order
• Pricing: Bundle offers, savings badges, strike-through prices

Conversion Rate in Context

The conversion rate should always be viewed in conjunction with other key metrics. A high conversion rate with a low average order value (AOV) isn’t necessarily better than a lower conversion rate with a high AOV. The most important metrics to consider together are:

• AOV (Average Order Value) — average order value
• CLV (Customer Lifetime Value) — customer lifetime value
• ROAS (Return on Ad Spend) — return on ad spend
• Cart abandonment rate — the percentage of customers who abandon their cart without making a purchase

Taken together, these metrics provide a more complete picture of your online store’s health than the conversion rate alone.