Conversion rate
Conversion rate is the percentage of your visitors who complete a purchase or other desired action on your online store. It's one of the most important metrics for any online store owner because it shows how effectively your store converts traffic into sales.
What is 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 buy something, your conversion rate is 2%.
Formula: Conversion rate = (Number of conversions / Number of visitors) × 100
Conversion doesn't only have to mean a sale. It can also be a newsletter sign-up, a completed contact form or the creation of a user account. But in a webshop context, conversion rate usually refers to the percentage of visitors who complete an order.
What is a good conversion rate?
For Danish webshops, the average conversion rate is typically between 1% and 3%. However, it varies significantly depending on industry, product type, price point and traffic sources:
- Fashion and clothing: 1-2% - often lower due to size uncertainty
- Electronics: 1-3% - customers compare prices but buy when the decision is made
- Grocery and consumer goods: 3-5% - high purchase intent, low consideration 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 cheap everyday products. Always compare with your own industry and your own historical figures.
Factors that affect conversion rate
There are many elements that determine whether a visitor ends up buying. Here are the most important areas to optimize:
Speed and performance
A slow webshop loses customers. Studies show that a delay of just one second in loading time can reduce conversions by 7%. Google measures Core Web Vitals (LCP, FID, CLS) as part of their ranking and these same metrics directly affect the user experience.
Mobile optimization
Over half of all web traffic comes from mobile devices. Your online store needs to work 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 confidence
Online shoppers won't buy if they don't trust the store. Important elements of trust include:
- Trustpilot reviews and product reviews directly on the product pages
- Clear return policy and delivery information
- Security badges and known payment solutions
- Contact details and VAT number visible in the footer
- SSL certificate (HTTPS) - this is standard in Shoporama
Product presentation
Good product images from multiple angles, detailed descriptions and specifications reduce uncertainty and returns. Show stock status and delivery time clearly so the customer knows when the item will arrive.
Checkout flow
The fewer steps and the less friction at checkout, the more people complete the purchase. Offer guest checkout, multiple payment methods and a clear progress indicator. Avoid surprise fees in the last step.
How to measure conversion rate
You can measure conversion rates with Google Analytics 4 (GA4) or other tracking tools. In GA4 you can see 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 source: organic search, paid ads, social media, newsletters and direct traffic typically perform very differently.
A/B testing for better conversion
The most effective way to improve conversion rates 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: Package offers, savings badges, line prices
Conversion rate in context
Conversion rate should always be viewed in conjunction with other key metrics. A high conversion rate with a low average order value (AOV) is not necessarily better than a lower conversion rate with a high AOV. The most important metrics to combine are:
- AOV (Average Order Value)
- CLV (Customer Lifetime Value)
- ROAS (Return on Ad Spend) - return on ad spend
- Cart abandonment rate - the percentage that leaves the cart without buying
Taken together, these numbers provide a more complete picture of your online store's health than conversion rate alone.
We know online marketing in Shoporama
We've been working with online marketing ourselves for decades. As the only shop system in the country, we have spoken multiple times at conferences such as Marketingcamp, SEOday, Shopcamp, Digital Marketing, E-commerce Manager, Ecommerce Day, Web Analytics Wednesday and many more.