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Why Your Ecommerce Conversion Rate Is So Low

Something is up.

You spent months and months planning and launching your ecommerce store.

You paid truckloads of money to specialists to make sure everything was just right.

You had high hopes.

Except, now, users aren’t actually converting into buying customers.

Does this sound familiar to you?

A reasonable ecommerce rate is essential for optimizing an ecommerce store. Low conversion rates affect your profits and your business is hindered in the longer term.

What’s A Conversion Rate?

To explain a conversion rate, it’s necessary to understand what a conversion is.

A conversion is typically an action taken by a website user in relation to your call to action (or CTA).

Would you like your visitors to subscribe to your newsletters? Buy a product or service?

When a site user completes one of these actions, these events are classed as conversions.

To calculate a conversion rate, you need to know:

  • The number of people that view the call to action
  • The number of people that complete the desired action

And by using a dash of maths:

(# of people who complete the desired action ÷ number of visitors that view the CTA) x 100

Is A Good Conversion Rate Possible To Achieve?

Some examples of ecommerce conversion rates include adding items to a cart, saving an item for a later purchase or finalizing a purchase.

So the next question is, what actually is a good conversion rate?

Ecommerce benchmarks vary by industry.

Irrespective of what your current conversion rate is, there is always room for improvement.

There are some common reasons for low ecommerce conversion rates. Let’s take a look.

5 Reasons That Your Conversion Rate Is Poor

1. Your Website Gives A Negative Impression

A user is very unlikely to purchase from you if they don’t like your site. The same is true if someone visits a physical store that they don’t like.

If your traffic is high but your conversions are low, think about usability issues initially.

Usability problems might include:

Poor navigation. Double check that popular items are easy to find.

Inadequate filtering and sorting. People using your site should be able to limit available options through the use of set criteria. Too many choices lead to choice overload and can have a negative impact on your conversion rate.

Search issues. Search results should relate to what people want. If your users are unable to find something, they can’t buy it.

How can you fix this?

Is your site due for an overhaul? It’s probably time for an overhaul with usability design as the focus.

2. Site Not Optimized

If your site has a low ecommerce conversion ratio, you should review your Search Engine Optimization strategy. SEO helps people find your site via the search engine results page when they are actively searching for related keywords.

Improper optimization can also drive the wrong type of users to your site. If a user doesn’t reach what they were looking for, a low conversion rate will follow.

Highly impactful visuals are imperative for online stores. A lack of these will cause a low conversion rate.

Customers simply won’t purchase things that don’t look attractive or appealing.

How can you fix this?

Use targeted keywords on your website to make sure that you attract the right type of traffic.

3. Ignoring Mobile Traffic

Mobile traffic simply can’t be ignored as the majority of traffic uses a smartphone to research items on the internet.

The web adopts a mobile-first approach. M-commerce is anticipated to experience a 29% CAGR by the year 2025 as worldwide smartphone adoption and payment use expands.

Google recently adapted their indexing process so that a site’s mobile content is indexed before it’s desktop content.

Sites that aren’t optimized for mobile devices deliver a poor customer experience.

Popups that are hard to close and “accept Cookie” notifications can result in immediate site abandonment.

How can you fix this?

Always use responsive web design. This allows web pages to render better on different devices and screen sizes. This makes it easier for a visitor to use the site on their devices.

4. Inadequate Search Tools

Search is a critical component of online optimization and can be the deciding factor for conversion rates.

Web users typically have a very short attention span. They expect to find what they want quickly. Search results that are irrelevant or come up with 0 results repel users. This results in lowered conversion rates.

A site that doesn’t have live chat support may, for example, affect conversion rates.

Users that find it difficult to find what they are looking for can also result in costly support tickets and calls.

How can you fix this?

Automation and AI powered search tools such as chat support which is always available can help this. Site search is a critical element in providing your site visitor with relevant content and information for their purchase or experience.

5. Poor Personalization Strategies

Personalization strategies might be too broad and focused on remarketing efforts.

Remarketing is a vital part of any ecommerce conversion path. It is a method of reaching the people who come to your site and then leave without completing any sort of action. But remarketing is most effective when personalized based on real-time engagement on the site.

How can you fix this?

Various AI powered tools, such as product configurators, allow you to deliver dynamic and related content.

These tools provide for tailored content, offers and product recommendations directed to your users.

The tools factor in things like demographic and geographic data, site behavior and history they have with the brand.

Success Strategies

Your investments should have decent returns.

Investing time and capital into your website, when it has a low ecommerce conversion rate, can be confusing and frustrating.

But you can do something about it.