Loading...
Answers
MenuWhat is a good/average conversion rate % for an e-commerce (marketplace model) for customers who add to cart through to purchase order.
This question has no further details.
Answers
There is quite a bit of information available online about eCommerce conversions rates. According to a ton of sources, average visitor-to-sale conversion rates vary from 1-3%. This does not mean the Furniture conversions will be the same. The bigger problem is that visitor-to-sale conversions are not a good data point to use to measure or tune your eCommerce business.
All business have some unique friction factors that will affect your final conversion rate. It's very important to understand each of these factors and how to overcome them. The best way to measure and optimize is to take a conversion funnel approach. Once you have defined your funnel you can optimize each conversion rate to better the total effect.
For example:
Top of the funnel: - All web site visitors, 100,000 / month
First conversion: View a product page, 50% of all visitors
Second Conversion: Add to Cart, 10% of people who view products
Final Conversion: Complete Checkout, 80% of people who put items in a cart
In this example we see that only 10% of people who actually view products put them in to a cart, but 80% of those people purchase. If you can figure out why visitors are not adding items to their cart and fix the issue to increase the conversion rate, revenue should increase significantly because of the high checkout rate.
You can use free tools like Google Analytics to give you a wealth of information about your site visitor and their behavior or there are some great paid tools as well.
Google Demac Media and get on their mailing list for monthly reports if you're interested in ecommerce stats for Canada ...great reports that detail all this
About 29% as a global benchmark.
Dan is 100% correct. Conversion always depends on Many factors. I have seen few sites or few categories where the conversion is even less than 1%. Building brand and trust is also important. As you build trust, your conversion increases. If you have similar products and services that your competitors sell then pricing plays a major role, else you need to have differentiation and define your target customers.
Also I would advice you to Focus on the following
1. Enhance the speed of site and make the design as simple and standard as possible
2. Mobile Layout and APP
3. Always help and engage your customers by giving lot of inputs from various mediums and drive traffic to your website from that. This helps you attain very good conversion (better than paid click ads of google and facebook)
4. Give good customer service
5. Devise a strategy to make customers buy from you again and again
6. Never follow one method. Try experimenting different ways to find out which works for you
Hope this information helps
A conversion is any desired action taken by a visitor on a website. Examples include signing up for a newsletter, downloading a guide, or making a purchase. The conversion rate is the percentage of visitors who perform one of these predefined actions. For e-commerce sites, the most relevant conversions are usually signing up for a new account, adding items to a cart, saving products on a Wishlist, and completing a purchase transaction. The conversion rate is useful because it tells you how successful your website is at guiding visitors into and through the sales funnel. A high conversion rate demonstrates that your website is successfully convincing visitors to become leads or customers, while a low rate indicates that there is room for improvement.
Conversion rates on e-commerce sites can vary widely across different sectors. This is due to the nature of the industry, the immediacy of purchase requirements, and the value of transactions.
1. Low conversion rates: Home Furnishings (0.4%) and Home & Garden (0.6%)
When making decisions about products for the home, consumers tend to spend a substantial amount of time researching and comparing their options, particularly when purchasing a high-ticket item. People shopping for home and garden products are also more likely to make a purchase in a bricks-and-mortar store. While they are likely to perform initial research online, they often like to see it in person before making a commitment. Think about the last time you purchased a sofa, for example. It might look perfect online, but you will only know for certain whether it’s the right investment once you’ve sat on it. Most people are unlikely to take a risk on such a high-value purchase, which explains the extremely low conversion rate.
2. Low conversion rates: Travel (0.7%) and Tourist Destinations (0.7%)
Again, travel and tourism website conversion rates are low due to consumer behaviour. In this sector, widespread research is commonplace. It is rare that someone will make a booking on their first visit to a travel website. Most travellers will perform price comparisons, check offers across different providers, and reach the final stage of the booking process without putting any money down – to check that the final price is within budget.
Plus, travel agents tend to make all the arrangements for those choosing to holiday through a travel agency which means that fewer people are online ‘converting’ themselves.
But there are sectors that are performing well, including:
3. Good conversion rates: Personal Finance (2.9%) and Finance (2.5%): E-commerce sites within the finance sector include those for banks, building societies, and insurance providers. The latter is unique, in that insurance providers tend to receive a substantial bulk of visits from people who have been referred by price comparison sites. These prospective customers are already warmed up to the product on offer and have largely made a purchasing decision before they even land at the provider’s site. Meanwhile, banks benefit from the strong pull of customer loyalty. Whether born of trust, risk aversion, or simply convenience, consumers tend to stay with their existing bank rather than have a portfolio of accounts across several institutions. The internet banking revolution has made it easier than ever for people to manage their money but interacting with a single app or website will always be a more streamlined experience than switching between several just to pay the bills.
4. Good conversion rates: Food and Drink (2.4%) and Food (2.1%): While online grocery shopping has been an established part of UK consumer behaviour for more than a decade, it’s still in its infancy in the US market. But interest is growing, and research has shown that a whopping 75% of consumers stick with the first retailer they order from. This explains, in part, the high conversion rate of food and drink sites. Another component is the explosion in popularity of ordering takeout food online. In the UK, the sector for home delivery is growing at ten times the pace of the wider eating-out market. Familiarity with a brand, as well as customer loyalty schemes, can be powerful pulls for consumers. Restaurant delivery sites and apps such as Postmates, Deliveroo, and Uber Eats have rapidly taken hold of the market, and by offering access to infinite restaurants under one umbrella, consumers are not bound by the same meal every time they want to order takeout. These services are therefore able to tap into the trend for exploring new cuisines, which helps to explain their conversion rate. Unlike high-ticket items that are expected to last a long time, such as home furnishings, food and drink decisions are relatively inexpensive and transient, making them low risk.
The global average e-commerce conversion rate falls between 1% and 4%. There is, however, a substantial disparity between countries. While e-commerce sites in the United States hover around the global average with a rate of 1.4%, the United Kingdom has an average conversion rate of 1.8%.
In the Eurozone, Germany and the Netherlands, both have a conversion rate of 1.4%, France hits an average of 1.1%, while Italy lags behind at 0.99%. Meanwhile, the conversion rate leader in Asia is Vietnam, with an average of 1.3%, while Singapore comes in at 1.1%, and the Philippines at 0. 8%. The reasons for this disparity are nuanced, and it is difficult to draw conclusions without a thorough cross-analysis of each market. However, a clue lies in broader consumer behaviour trends. For example, mature markets with an established online brand presence tend to produce higher conversion rates, while a move away from bricks-and-mortar to online shopping will naturally increase the rate. In the UK, for example, the prolonged decline of high street shopping, alongside a sustained rise in online retail, has seen off established brands that failed to make a convincing switch, in favour of new and legacy companies that have fully embraced digital selling. This provides some context for the UK’s slightly higher conversion rate.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
-
What are the profit margins for high end home decor and furniture?
Hone decor / furniture industry is one of the highest profit promising industry today. The profit margins on home decor ranges from 20% - 45% depend on the price of the product. If you're looking to get quickly popular, I suggest you start with the online store and promote it on offline as well. Keep the margins low initially so that you can attract more buyers. As the business grows, reinvest the amount back on the business so that you can stock more varieties. All the very best.KK
-
For every success story in Silicon Valley, how many are there that fail?
It all depends on what one decides to be a definition of a "success story." For some entrepreneurs, it might be getting acqui-hired, for some -- a $10M exit, for some -- a $200M exit, and for others -- an IPO. Based on the numbers I have anecdotally heard in conversations over the last decade or so, VCs fund about 1 in 350 ventures they see, and of all of these funded ventures, only about 1 in 10 become really successful (i.e. have a big exit or a successful IPO.) So you are looking at a 1 in 3500 chance of eventual venture success among all of the companies that try to get VC funding. (To put this number in perspective, US VCs invest in about 3000-3500 companies every year.) In addition, there might be a few others (say, maybe another 1-2 in every 10 companies that get VC investments) that get "decent" exits along the way, and hence could be categorized as somewhat successful depending on, again, how one chooses to define what qualifies as a "success story." Finally, there might also be companies that may never need or get around to seeking VC funding. One can, of course, find holes in the simplifying assumptions I have made here, but it doesn't really matter if that number instead is 1 in 1000 or 1 in 10000. The basic point being made here is just that the odds are heavily stacked against new ventures being successful. But that's also one of the distinguishing characteristics of entrepreneurs -- to go ahead and try to bring their idea to life despite the heavy odds. Sources of some of the numbers: http://www.nvca.org/ http://en.wikipedia.org/wiki/Ven... https://www.pwcmoneytree.com/MTP... http://paulgraham.com/future.html Here are others' calculations of the odds that lead to a similar conclusion: 1.Dear Entrepreneurs: Here's How Bad Your Odds Of Success Are http://www.businessinsider.com/startup-odds-of-success-2013-5 2.Why 99.997% Of Entrepreneurs May Want To Postpone Or Avoid VC -- Even If You Can Get It http://www.forbes.com/sites/dileeprao/2013/07/29/why-99-997-of-entrepreneurs-may-want-to-postpone-or-avoid-vc-even-if-you-can-get-it/MB
-
Business partner I want to bring on will invest more money than me, but will be less involved in operations, how do I split the company?
Cash money should be treated separately than sweat equity. There are practical reasons for this namely that sweat equity should always be granted in conjunction with a vesting agreement (standard in tech is 4 year but in other sectors, 3 is often the standard) but that cash money should not be subjected to vesting. Typically, if you're at the idea stage, the valuation of the actual cash going in (again for software) is anywhere between $300,000 and $1m (pre-money). If you're operating in any other type of industry, valuations would be much lower at the earliest stage. The best way to calculate sweat equity (in my experience) is to use this calculator as a guide: http://foundrs.com/. If you message me privately (via Clarity) with some more info on what the business is, I can tell you whether I would be helpful to you in a call.TW
-
I finally found my billion-dollar startup idea. Now what?
The idea is a very small fraction of what it takes to earn the first million. Certainly billion. What actually matters is your ability to *execute*. Entrepreneurship means "having the talent of translating opportunities into money". Or, as Alexis Ohanian of Reddit said, "entrepreneur is just French for 'has ideas, does them'." As much as it may seem that transitioning off your 9-to-5 is the biggest hurdle, it's not. If you can't "get out of the gate" then you're also not ready to deal with the real challenges of business, like "competition that has 1,000x your funding" or "suppliers that jerk you around" or "customers who steal your intellectual property". It's easy to have a "billion dollar idea". I'd like to mine gold off of asteroids; I'm sure that would be worth billions. I'd also like to invest in Arctic real estate that will become coastal vacation property after fifty more years of warming. And, of course, to make a new social network that everyone loves. But saying these things is very very different from accomplishing them. Prove your concept by first taking a small step, such as making the first dollar. (Maybe try Noah Kagan's course at http://www.appsumo.com/how-make-your-first-dollar-open/). If you can't figure out a way to "make it go" without a giant investment, then you're kidding yourself about your ability to execute the business. If you *can* figure out a way to get a toehold, then by all means do it now! Happy to advise further, feel free to contact me for a call.AS
-
I want to start an ecommerce business that imports goods from India to sell in the U.S.. Where in the world do I start re: tax/legal implications.
TAX is US. For export paperwork (free tax delivery) is India. Use business location may in delaware for lower state taxML
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.