what is the average conversion rate for an e-commerce website or for any website for that matter? There is a basic answer and a more complicated yet more practical one. For the basic answer we can reference a recent study conducted by Forrester as presented in an article from the August 2007 edition of Target Marketing Magazine. The article stated, “Forrester research indicates that the average conversion rate - that is the ratio of orders to overall site visits - is 2.9 percent.”
The majority of the e-commerce companies that we have worked with to improve their conversion rate tend to initially report a conversion rate of less than 1.0 percent. Therefore, our experience shows that the average conversion rate among small to mid-size businesses (ones probably not well represented in Forrester’s study) is maybe closer to 1.5 percent.
For lead generation and other non e-commerce sites, the conversion rate fluctuates drastically. Lead forms could reach even higher levels around 8% to over 20%. Certainly variables like B2B versus B2C, the type of offer,the type of attracted visitors (advertising methods), incentivisied vs. not incentivised, quality/relevance of creative and so on will influence the conversion rates.
However the situation is really “more complicated yet more practical”.
Comparing conversion rates within markets or worse across industries is difficult if not almost impossible. There are so many variables affecting conversion rates. More importantly a conversion rate metric provides no indication of profitablility - the number that really matters. Knowing an “average conversion rate” is nice but you should really be concerned with what conversion rate you need to achieve to drive profitable leads, subscriptions, sales or other business value associated with your objectives.
Set your own conversion rate goal based on a financial analysis focused on greater sales volume and/or higher profits and compete against this internal benchmark. At the end of the day, its not a matter of the vanity of whether you are above or below the “industry average” - instead it’s about the financial success of your own web business.
The average conversion rate for an eCommerce website?
