When it comes to making more money on Shopify, there are two options: getting more traffic or improving the conversion rate of your website. The sensible option is to always increase your Shopify store conversion rate because it’s more cost-effective.

Take, for example, you have an average order value of $20 and profit margins of 40% on your products. Your profit is going to be $8. Now, your conversion rate is likely to be around the 5% mark. That means you need to bring in 20 customers to your site to achieve one more sale.

If you use paid ads, that means you need to spend no more than $0.40 per click to break even on an order.

For reference, the average cost for a click in 2019 was $1.03. Therefore, you run a campaign at a loss.

However, if you operate a campaign, you could spend $20.60 to make just $8 profit. You would need to make that customer come back to you at least three times to make that campaign worth it. And there is no guarantee of that.

Key Takeaways
1
Optimizing site speed is crucial for enhancing user experience and conversion rates.
2
Building trust with customers is key to increasing conversions on Shopify stores.
3
Effective content writing can significantly improve the appeal and conversion potential of your store.

 

Conversion Rate Calculator & Info

Conversion rate is the percentage of visitors to your website or online store who complete a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form. Calculate this critical piece of information below using our conversion rate calculator:

Conversion Rate Calculator



It’s calculated by dividing the number of conversions by the total number of visitors and multiplying by 100:

Conversion Rate = (Number of Conversions / Total Visitors) x 100

For example, if 1,000 people visit your website and 50 of them make a purchase, your conversion rate is 5%.

Knowing your conversion rate is imperative for several reasons:

  1. Measure success: It gives you a clear indication of how well your website or marketing efforts are converting visitors into customers or leads. A high conversion rate means your website is doing its job effectively.
  2. Identify problems: A low conversion rate can highlight issues with your website, user experience, or marketing. It signals that something may be off-like poor website design, unclear messaging, or an ineffective call-to-action.
  3. Improve ROI: Boosting your conversion rate means you can get more value out of the traffic you’re already generating. Small improvements in conversion rate can lead to significant revenue increases without spending more on ads.
  4. Guide optimization efforts: Knowing your conversion rate helps focus your efforts on making improvements. Whether it’s tweaking your site’s layout, rewriting copy, or testing different product pages, increasing your conversion rate can lead to bigger profits.
  5. Benchmark against industry standards: Comparing your conversion rate to industry averages helps you understand where you stand and whether you need to make changes to stay competitive.
  6. Maximize marketing efficiency: If you know your conversion rate, you can calculate how much traffic you need to meet your sales goals. This helps you plan and budget your marketing efforts more effectively.
  7. Understand customer behavior: Tracking conversion rates over time can provide insights into how customer behavior changes and how well your offerings or promotions resonate with your audience.
  8. Support growth: Higher conversion rates mean you’re getting more out of each visitor, which can lead to scaling your business more efficiently and increasing overall profitability.

Making Conversion Rate Better

Instead, making your conversion rate better is a much more profitable option. Say you have a conversion rate of 2%, and you earn $50,000 in revenue each year. A 1% increase in the conversion will equal to an extra $25,000 a year being made.

And many aspects of improving the conversion rate can be done without too much cost. Here are some options for you to improve your conversion rate.

1. Site Speed

For every second it takes your page to load, you will lose 7% revenue. The average time of loading is about 6 seconds, which is equal to 42% of your revenue. However, if you get your loading time to just one second, you can lose just 7% of potential revenue. If you earned $50,000 a year in revenue for 6 seconds, that would mean an extra (potential) $30,000 a year in revenue.

There are many ways to improve the speed of your website. You can use an app, like this one, to improve your website’s speed. Additionally, removing an old app that is no longer needed can help reduce load times. You can also optimize images and try lazy loading images.

2. Build Trust

You also need to build trust with audiences. Use trust signals like trust badges on your website, or perhaps use live chat or reviews to increase the trust customers have in your website.

Trust is vital because customers are becoming very aware of digital crime, and they don’t trust your website automatically. They need to see that you’re able to give them protection.

You can also use an SSL certificate to build trust.

3. Write Better Content

Content with lots of errors and spelling mistakes in, it looks spammy. It doesn’t give the customer confidence in what you’re offering. Therefore, always get a professional writer/editor/proofreader to look over your content.

You can find these on sites like Upwork or Freelancer for a good fee.

4. Free Shipping/Shipping

Don’t hide shipping costs. Customers are more likely to abandon an order online due to shipping costs. So, don’t hide your prices; try to offer free shipping. This can really help you increase conversions on your website.

You can also use apps like a free shipping bar to encourage more conversions on your website.