In today’s fast-paced online world, the number of online shoppers continues to grow. As a marketer and a store owner, you need to keep up with the advancements and understand some key issues for an eCommerce business.
In the eCommerce industry, one of the metrics used to measure the real success of a business is the eCommerce conversion rate. This metric shows the ratio of people visiting an online store that actually converts.
As a business owner, you need to be knowledgeable of the eCommerce conversion rate considered as good and what rate is in a risky situation. You also need to know the good conversion rate benchmark to aspire to.
The Average eCommerce Conversion rate of 2021
As of July 2021, the average eCommerce conversion rate was at 1.76%, falling shortly by .14 percent from the month of June. July’s conversion rate also saw a 0.26 percent decrease from the previous year of the same month.
From time to time starting this year, the average conversion rates across eCommerce business vary between 1% to 4%. If you do good for your business, you probably land somewhere between a 1.5% – 2% conversion rate.
In the lighter scenarios, let’s say you’ve invested money in eCommerce conversion rate optimization tactics, your business could see conversion rates as high as 2.5% to 3%.
The Average eCommerce Conversion Rate by Product
Conversion rates differ from market to market and product to product. The category of the product that you are selling also factors heavily into the target you want to achieve when you want to optimize your conversion rate.
If you want to benchmark the conversion rate for your store, here’s some of the conversion rate of some of the most popular product categories:
The product category that has the highest eCommerce conversion rate are the products that fall under arts and crafts, gathering a 3.21% average conversion rate. This is followed by pet care at 3.01% and third on the spot is health and wellness at 2.92%.
The other top-converting product categories are as follows:
4. Kitchen and home appliances at 2.82%
5. Fashion clothing and accessories at 2.19%
6. Electrical and commercial equipment at 1.82%
7. Food and beverages at 1.76%
8. Sports and recreation at 1.76%
Among these product categories, pet care products have the fastest increase in terms of eCommerce conversion growth rates. This is then followed by the kitchen and home appliances and cars and motorcycles.
Listed below are the top five fast-growing product categories based on eCommerce conversion growth rates:
- Pet care at 27.9% growth rate
- Kitchen and home appliances at 16.50% growth rate
- Cars and motorcycling at 15.25% growth rate
- Electrical and commercial equipment at 5.74% growth rate
- Sports and recreation at 3.78% growth rate
Know Your Business Performance Much Better
Monitoring and analyzing your conversion rate shouldn’t be challenging. There are eCommerce Conversion Rate tips and tricks out there at your disposal that will help you define your website conversion rate benchmarks and KPIs.
You need to remember that the purpose of benchmarking is to help you understand the current standing and performance of your online business. Yes, they are helpful, but benchmarks should not be worshipped as the gold standard of what needs to be done.