In this post we review some fresh statistic of important eCommerce metrics. This data is useful to see how does you online store perform and answer such question as “Is 1.5% conversion rate is good or bad?”.
Conversion rate
Conversion rate is a ratio between number of website visitors who made a purchase and total number of website visitors. So if you had 100 in total and 2 of them made a purchase, the conversion rate is 2%
So what is an average conversion rate in 2016? It is around 1.3-1.4%. More details:
- Average Conversion Rate was 1.12% for multi-channel retailers and 2.00% for pure-play online retailers according Wolfgang Digital (referred later as Wolfgang, see ref. #1)
- Average Conversion Rate was 1.33% according Compass (ref#2)
Traffic sources
This section answer the question “What is a typical traffic sources mix?”
The chart below shows the share of top traffic sources in overall traffic of retail websites and their revenue.
The data here is based on Wolfgang report. Only the top sources are displayed.
Organic search and CPS are clear leaders here. Wolfgang guys even says “Win on Google Win Online”.
Assisted conversion
What if we want to count in cases, when a customer visited website from one source, but made a purchase from another? It makes sense to look into Assisted Conversion numbers in this case. Assisted conversion data below shows how often the source of traffic was used by users who eventually converted at all. Again, Wolfgang data:
- Direct – 58%
- Organic Search – 55%
- Paid Search – 36%
- Email – 10%
- Social Networks – 3%
- Display Ads – 2%
Sources and conversion
Based on the numbers above me may probably make a good guess what traffic converts better, however seeing concrete numbers is nice. Such data is available from Compass and displayed on the chart below:
As a final note important to remember that benchmark data above is an average snapshot while every business is different. Though eCommerce conversion rate is an important metric it shouldn’t be looked in isolation from other important business KPIs.
References
- Wolfgang Digital “E-commerce KPI Benchmarks 2016“
- Compass, eCommerce Conversion Rate – 2016 Benchmark
