Making It Know

Ask Us: How to Increase Conversion Rates for Your Ecommerce Website

Editor’s Note: Find the answers you need to succeed in Ask Us, a monthly advice column powered by Squarespace employees and other experts in their respective fields.

Whether you just launched your online store or consider yourself a seasoned seller, there are many tactics you can use to optimize ecommerce conversion rates. Your store’s sales are influenced by everything from the content on your Products Pages to industry trends that are outside of your control. While there are many variables at play, this also means there are many paths to grow your revenue and scale your business. Read on to learn more about what defines a good ecommerce conversion rate, and how to improve your online store’s performance.

What is a good conversion rate?

A good conversion rate can vary widely based on factors like the industry you’re in, brand awareness, and your ability to drive qualified traffic to your store. As a starting point, make sure you know your store’s current conversion rate, and research industry benchmarks to gauge both average and aspirational sales performance for your business. 

Your conversion rate is calculated by dividing the number of visitors who completed an order on your site by the total number of site visitors, multiplied by 100. For example, if 50 people visited your online store today, and five of them completed purchases, your conversion rate is 10% (5/50 x 100 = 10). Squarespace Commerce subscribers can view their ecommerce conversion rate in the Sales Analytics panel.

Next, start monitoring your ecommerce conversion rate as an indicator of the overall health of your business. A consistent or increasing conversion rate means you’re successfully converting site visitors into customers, while a stagnant or declining rate means there might be areas for improvement.

A growth-oriented business should always be focused on improving conversion rates. Here are nine ways to increase conversion rates for your ecommerce website:

  1. Integrate Afterpay

    Drive increased sales by offering a buy now, pay later option to your customers at checkout. With Afterpay, shoppers can purchase an item now and pay in four installments over six weeks, while you receive the full payment upfront. In addition to increasing conversion rates, Afterpay retailers report an increase in repeat shoppers and number of units per transaction. Learn more about enabling Afterpay on your Squarespace website. Currently, Afterpay is available to sellers based in the United States, Canada, Australia, and New Zealand.

2. Create discounts

Create automatic discounts that apply to entire orders, orders over a set amount, or specific products. If you’re worried about overuse, you can limit discounts to one use per customer, or set a total number of uses in your store. Promote the discount through targeted Email Campaigns or by adding an Announcement Bar to your website.

3. Offer free shipping

Incentivize customers to complete their purchase by offering free shipping on their order. You can offer free shipping across all your products by creating a free shipping rate, or share a free shipping discount for a set number of customers or a specific period of time. With a Commerce Advanced plan, Squarespace users can set a free shipping discount to apply automatically at checkout.

4. Set up Abandoned Cart Recovery emails

Abandoned carts and incomplete checkouts directly impact your store’s conversion rate. Set up Abandoned Cart Recovery emails to automatically send reminders to customers who add products to their cart and leave your site without completing an order. You can customize the subject line, message, header, and footer of your emails to match your brand, and set them to send 24 hours after a cart or checkout is abandoned. Sending a quick, automatic reminder to these customers can have a significant impact on your conversion rate.

5. Leverage Analytics

Leverage Purchase Funnel Analytics to gain a better understanding of how customers move through your site to complete checkout, and where some customers may drop off. In addition to monitoring your conversion rate, you can also view important sales metrics like average order value (AOV), sales trends over time, and revenue per visit (RPV) in the Sales Analytics panel. Use this data to gain insights into site traffic, geography, search keywords, popular content, and more. 

With the Squarespace mobile app, you can check your store’s Analytics from anywhere, at any time. The more you know about your site visitors and how they interact with your store, the better you can optimize your sales funnel and increase conversions. You can learn more about your Squarespace Analytics panel here.

6. Enable Customer Accounts

Allow first time visitors and repeat shoppers to create Customer Accounts so they can sign in for a faster checkout experience. With a Customer Account, your customers can securely save payment methods, shipping addresses, shopping carts, and order information. As a retailer, this can enable you to increase sales from repeat buyers and build ongoing relationships with your customers. Learn more about enabling Customer Accounts on your website.

7. Use Limited Availability Labels

Let your customers know when a product’s inventory is running low. Customize a Limited Availability Label for your products, including how, when, and where the label appears on your site. When customers have visibility into inventory levels, they can be more motivated to purchase a limited edition or popular item before stock runs out. 

8. Show related products to your customers

Make sure your customers can find the products they’re looking for in your online store. Add categories and tags to your products to enable related products to display on your product detail pages. In addition to improving the customer experience, showing more products to your site visitors can be a successful strategy for increasing sales.

9. Sell on Instagram

Leverage your social media presence to improve your conversion rate by reaching your audience on more channels and attracting new customers. Tag your Squarespace inventory in Instagram posts and stories, allowing Instagram users to view your product details and click through to your website to make a purchase. 

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