Speak to any digital marketing executive and they will probably proclaim the sales conversion rate as the single most important KPI to determine the success of any digital marketing campaign.

So, how do you define the sales conversion rate? In simple terms, it is the total number of sales conversions divided by the total number of your website visitors or app users. For example, if an online eCommerce retail site has 500 monthly visitors to its website and has a total of 100 sales, the sales conversion rate would be 20%.

Why does Sales Conversion Rate matter?

Sales Conversion Rate is an effective KPI for eCommerce retailers to determine the impact of their website design on their business objectives. Ecommerce companies looking to increase their online sales must consider the sales conversion rate as a key factor in improving their online sales.

As an e-commerce retailer, you can use the sales conversion rate of your online business to determine the success (or failure) of your website or mobile app as well as identify areas of improvement.

Additionally, improving your sales conversion rate can help you achieve more online sales with the same website traffic or app users, apart from determining your digital ad budget. For example, if you are spending $1,000 on digital ads each month which are driving around 500 online shoppers to your website, you can easily double the value of your ad spend by doubling the sales conversions. On the other hand, you can decide to half your digital ad budget each month and still manage to get the same number of sales conversions as before.

Sales conversion rate is also useful when it is segmented according to the different customer referral channels and accordingly determine your digital ad budget on each channel.

For example, if you invest the same budget into both Google and Facebook Ads, as a result of which:

  • 1000 Google users visit your website and 10% of them make a purchase.
  • 2000 Facebook users visit your website and 5% of them make a purchase.

While the sales conversion rate differs between the 2 channels, the same number of customers (100) are making the purchase. In this case, assuming that the conversion rate remains the same, increasing the budget by the same amount in each of these channels would result in more sales using Google Ads than on Facebook Ads. Hence, the sales conversion rate can be a useful indicator of understanding which marketing funnel or customer segment demands more ad investments.

How to improve your Sales Conversion Rate

Ecommerce businesses can improve their sales conversion rate without any major spending budget or expenditure.

Better product images: Every online shopper wants to see the product they are buying. Use the right set of images on your product images to connect better with your customers and also boost your sales conversion.

Improved product descriptions: Ensure that your product descriptions are written to help your customers make the right decision. Capture the product features in a concise version along with its benefits. Include a longer version for providing more details to your customer.

Product videos: Product videos are a great way of engaging your online users, and it does not cost much you can shoot your product videos on your smartphone. Treepodia reports that conversion rates (CVR) have improved after online shoppers have watched product videos.

Industry-wise Average Ecommerce Sales Conversion Rate in 2018

The sales Conversion rate for Ecommerce business can vary industry-wise. Shown below are the statistics for the year 2018.

Depending on your industry, you can look at the average conversion rate and devise a digital marketing strategy that can be successful for your market.


Ecommerce retailers are evaluating their sales conversion rate and how it contributes to data analysis and business growth. Analytics tools that can segment the incoming traffic according to sales channels offer a more accurate picture of your conversion rate.

To get more information on Ecommerce KPIs, you can connect to Countants team mailto:connect@countants.com