Conversion rate

The conversion rate indicates what percentage of a website’s visitors carry out a desired action. In an online store, that is usually a purchase. It is one of the most important metrics in e-commerce, because it shows how well a store turns visitors into customers. Viewed in isolation, however, it can also be misleading.

How the conversion rate is calculated

The formula is simple:

Conversion rate = conversions ÷ visits × 100

An example: a store has 20,000 visits and 400 orders in a month. The conversion rate is 400 ÷ 20,000 × 100 = 2 percent.

What matters is what counts as a visit and what counts as a conversion. Most tools calculate with sessions, i.e. individual visits. Some calculate with users, i.e. people who may come several times. The results differ considerably. Anyone comparing values therefore needs to know on what basis they were calculated.

Macro and micro conversions

• Macro conversion: the actual goal, in a store the purchase.

• Micro conversions: smaller steps on the way there, such as adding a product to the cart, starting checkout, signing up for the newsletter or creating a customer account.

Micro conversions show where visitors drop off. Looking only at the purchase rate shows that something is wrong. Looking at the individual steps shows where.

What is a good conversion rate?

There is no universal answer. Many online stores fall roughly between 1 and 3 percent, but the range is wide and depends heavily on:

• Industry and price: consumables and repeat purchases achieve considerably higher values than expensive, rarely bought products.

• Device: on smartphones people browse more and buy less than on desktop.

• Channel: visitors from the newsletter or brand searches buy more often than visitors from guide articles or social media.

• New or returning: existing customers usually convert many times better.

The most meaningful comparison is therefore with your own store: over time, by channel, device and page type.

What influences the conversion rate

• Visitor quality: those who arrive with buying intent are more likely to buy. A category page for “buy metal raised bed” converts better than a guide on “filling a raised bed”.

• Price and shipping costs: unexpected costs at checkout are one of the most common reasons for abandonment.

• Trust: reviews, trust seals, clear returns and reachable customer service.

• Speed and usability: slow pages and sluggish responses to clicks cost purchases. More on this under Google PageSpeed Insights and in the article on INP.

• The checkout: few steps, guest checkout, the right payment methods for each country.

• Product pages: good images, complete information, clear availability and delivery time.

Why the conversion rate alone is misleading

• More reach lowers the rate: if a store gains many new visitors through guides, the conversion rate falls even though revenue and customer numbers rise. That isn’t a bad sign.

• Basket value and margin are missing: a high rate with small orders can bring in less than a low rate with large ones.

• Discounts buy rate: permanent promotions raise the conversion rate, but at the expense of margin.

A combination of several metrics is more meaningful: conversion rate, average order value and, from these, revenue per visit. For paid channels, cost per order and return on ad spend are added, which can be estimated quickly with the ROAS calculator and the Google Ads profit calculator. How this works out for price comparison sites is shown in the article on price comparison sites.

Measuring the conversion rate correctly

The conversion rate is only as good as the data behind it. Typical measurement errors in stores:

• Missing consent: visitors who decline in the consent banner are missing from the analysis entirely or partially.

• Ad blockers and browser protection: they block tracking scripts, so orders aren’t recorded.

• Different tools, different figures: store statistics, Google Analytics and advertising platforms count visits and conversions differently.

• Several devices: someone who browses on a smartphone and buys on a laptop appears as two visitors.

Server-side tracking records orders considerably more completely than pure browser tracking; more on this under server-side tracking. In Google Analytics 4, conversions are now called key events, and the purchase rate can be evaluated via the purchase event.

Conversion rate in Shopware and Shopify

Shopware 6 shows revenue and orders in the admin; for a meaningful conversion rate by channel, device and landing page you need an analytics tool such as Google Analytics, ideally with server-side tracking.

Shopify shows a session-based conversion rate in its own analytics, broken down into the steps cart, checkout and purchase. The figure often differs from Google Analytics because the two count differently.

Improving the conversion rate

Improving the conversion rate is called conversion optimisation. It starts with analysing where visitors drop off and focuses where the biggest lever lies. Changes are ideally verified with tests, provided there are enough visitors for a reliable result. More on this in the entry on conversion optimisation, in the CRO guide for Shopware and on the page about conversion rate optimisation.

Frequently asked questions

How do I calculate the conversion rate?

Orders divided by visits, times 100. With 300 orders and 15,000 visits, that is 2 percent.

What is a good conversion rate for an online store?

Many stores are between 1 and 3 percent, considerably higher or lower depending on industry, price and channel. The most important benchmark is your own store’s development.

Why is my conversion rate falling while revenue is rising?

Usually because new visitors are arriving who are still researching. As long as revenue and revenue per visit are right, that isn’t a problem.

Why do Google Analytics and my store show different values?

Because they count visits and purchases differently, and Analytics doesn’t capture all visits due to missing consent and ad blockers.

What is the difference between conversion rate and click-through rate?

The click-through rate measures how many people click on a search result or an ad. The conversion rate measures how many visitors then buy.