What is a good conversion rate?
There could be no hard and fast number to denote a good conversion rate neither can there be a common yardstick to compare conversion rates of different firms. Whether the conversion rate is good or not is spoken of in terms of the context that you would have decided to measure it.
A frame of reference against which a realizable goal is set will define if you have been able to achieve the targeted conversion or not. As we all understand comparison can only be possible between likes, hence a conversion rate that is exceptional for one firm may not be good enough for another until and unless both are measured against a common reference frame.
The conversion rate in one context is incomparable to one set against another reference so much so that not even two landing pages of the same website can be put against one another. For large marketplaces with an average e-commerce conversion rate of 2% is considered fairly good (which also depends on the industry you are dealing with).
Again coming back to the question of what actually is a good conversion rate I would say a fair analysis of other players in your niche can help you answer it. Not only will this help you set pragmatic goals for your firm but you’d also become mindful of what exactly you need to accomplish.
In order to keep growing it is inevitable to think of ways to increase the conversions and keep the cash flowing in for your venture.If you already own an e-commerce marketplace and are looking for optimizing it to increase sales or if you are starting on one from scratch you need not worry. For we will be sharing some proven techniques to help you in achieving the desired sales surge.
i) Responsive Design
ii) Ease of Use
Due to the increasing usage of smartphones, it has become almost mandatory for online store owners to have mobile-optimized sites for their customers. Majority of product browsing and tracking activities are preferred to be performed over mobile sites and apps by users.
By the year 2020, mobile e-commerce is predicted to account for roughly 50 percent of all e-commerce sales in the U.S. (source: statista)
U.S. mobile retail commerce sales as a percentage of retail e-commerce sales from 2017- 2021.
i) Clear CTAs
ii) Uncluttered site
iii) Good Quality images
Coming to speak of the visual impact that your marketplace website creates its important to understand that the overall look and feel of the site hold as much importance as the images of the product displayed.
It is extremely crucial to provide a visually appealing website to your customers. This not only means displaying high quality, very well turned out pictures of your products( which is essential indeed) but also working on the look of the entire site. The links to important pages such as the cart, wishlist etc. shall be clearly visible and distinguished in the sense that they draw attention.
Also, the products should be well displayed and described.An appealing description of the product often increases the chances of the customer ending up buying that product. It’s important to play wisely with words in order to create a need for your product with the customer.
i) Rating for vendors
ii) Option to give reviews for every product
A lot of us would agree to have changed their opinions about a product by watching its Reviews. On one hand, some of them may have encouraged us to make the purchase whereas on the other hand some may have worked otherwise. Both ways the reviews helped in making an informed decision.
A research by Podium suggested that reviews and ratings by other customers impacted purchase decisions of 93% customers. As they say that a satisfied customer is the best business strategy, therefore, make available the option for reviewing your products in your marketplace.
i) COD, internet banking, card payments
ii) Secure payment gateways
If your marketplace supports various payment methods such as COD, internet banking, card payments etc. it facilitates a larger audience and eventually leads to successful transactions in whichever way the customer prefers. Also, security is of equal importance. Customers would be less apprehensive sharing their details if the website offers secure payment methods.
i) Minimal Steps
ii) Seamless process
An easy checkout process is crucial to a seamless buyer journey. The problem of the customer abandoning the transaction due to a complicated checkout process can be easily avoided to a large extent by simplifying the process as much as possible.
According to studies shopping cart abandonment could be as high as 80% and a complicated checkout process could be a big contributor to it.A reduction in cart abandonment rate directly means a rise in the conversion rates. A simple calculation of cart abandonment rate and that too from the checkout page can let you have the exact idea as to how much you are losing out. Worry not for this can be resolved by working on a smooth checkout.Therefore ask only the information that is extremely important and reduces the checkout time and the multiple stages involved.
i) Clear returns and refund policy
ii) Efficient execution
An easy returns policy is important for giving your customers an assurance that they can be sure of a hassle-free refund process if they dislike the product ordered and an efficient exchange for that matter.
A strong money back guarantee can go a long way in establishing your credibility with the customer and they’d be getting the positive message of not being cheated for quality if anything goes amiss in the entire process.
A good return policy could work as a great marketing tool for your business which will eventually work positively for your conversion rates.
Whereas as stated a single blanket approach cannot be suitable for all types of businesses. There are multiple ways that could be impacting your conversion rates. The prominent and the most commonly experienced ones have been discussed above. Try to incorporate these changes in your marketplace and do follow us for more.