What is a good conversion rate?
That is the question.
In ecommerce, website traffic means nothing if you're not converting visitors into paying customers. But that doesn't mean you should work your team to the ground pushing for the maximum conversion rate in the entire ecommerce landscape, either.
Different industries cater to different customers. That means different customer behavior and varying chances of committing to a purchase.
To demystify this equation, we compiled the top conversion rate benchmarks by industry. We also included proven tips to help boost your conversion rate and outperform the competition.
Let's get started.
What is Conversion Rate (CVR) and Why Does It Matter?
Conversion rate is the percentage of website visitors that take action — be it subscribing to a newsletter or buying a product.
To calculate your conversion rate, divide your total conversion count by the number of visitors and multiply the result by 100.
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In terms of ecommerce sales, the higher your conversion rate, the more visitors actually turn into paying customers. This in turn lowers your Customer Acquisition Cost (CAC), boosts profits, and drives up your ecommerce ROI.
That's why optimizing your conversion rate is a must if you want to grow your ecommerce business.
To help you set realistic objectives, you need to use conversion rate benchmarks specific to your industry.
Remember, there are nuances that affect the conversion rate in each industry, particularly when looking at your market.
Customers shopping for gadgets or appliances, for example, may not convert as much as those shopping for food items. The latter involves lower-risk transactions that satisfy a more urgent need.
The Average Ecommerce Conversion Rate Across All Industries
Of course, it's still a good idea to check the global average ecommerce conversion rate across the spectrum.
It may not be as helpful as checking the average conversion rate in your particular niche. But getting a broad overview of the online shopping space as a whole will keep you in touch with consumer trends, including datasets on device preferences, seasonality, geography, and other demographics.
According to reports, the global average conversion rate across ecommerce is between 2.5% and 3%.
To the untrained, that number may seem a little low.
Just picture this: a well-optimized ecommerce website will have no problems pulling in hundreds or even thousands of visitors per day.
Suddenly, converting 3% of your audience doesn't seem so small anymore.
While checking the global average conversion rate shows you the big picture, diving into the numbers on an industry level leads to real, actionable strategies.
Industry-Specific Conversion Rate Benchmarks
Without further ado, here's what the latest data says about the average conversion rate per industry:
1. Fashion & Apparel (4.07%)
Fashion will always be a relevant niche in the ecommerce sector.
Data shows that 20.2% of all online purchases made in the U.S. are from fashion and apparel brands. And, if all technical indicators are correct, this niche will continue to thrive for years to come.
Near the end of 2024, the average ecommerce conversion rate in the fashion and apparel industry is 4.07%.
This makes it one of the most lucrative spaces in the world of online shopping.
Factors Affecting Ecommerce Conversion Rate in Fashion:
- Brand recognition and identity. Despite all the positives, it's worth noting that the fashion industry is highly saturated and dominated by big-name brands. And with the tight competition, it can be difficult to capture your fair slice if you're only getting started.
- Product presentation. People purchase fashion items to look good. In addition to high-quality product images, it's important to have detailed descriptions that emphasize what images can't show, including the quality of fabrics and comfort.
- Localization. Clothing and footwear hold 39% (the majority) of customers who make cross-border purchases. As such, localization features and extended support for more payment options are a big factor when it comes to conversions.
2. Food & Beverages (6.17%)
Food and beverage ecommerce brands are among the top-performing in terms of conversions.
It's not hard to see why.
People need to buy food frequently — be it in the form of groceries or ready-to-eat meals. Online food purchases are also considered low-stakes compared to most other product categories, like furniture or jewelry.
All things considered, the average ecommerce conversion rate in this niche is 6.17%.
Factors Affecting Ecommerce Conversion Rate in Food:
- Delivery speed and costs. When customers shop online for food, they usually want it delivered fast. Customers also tend to look at delivery fees when choosing an ecommerce website to buy food from.
- Discounts, special promos, and loyalty rewards. Ecommerce customers in the food niche make frequent repeat purchases. Offering discount vouchers and rewards programs will encourage them to come back for more.
- Product reviews. Customers also like to check reviews when shopping online for food or groceries. Star ratings and User-Generated Content (UGC), like social media posts featuring your product, are also influential drivers for increasing conversions.
3. Beauty & Personal Care (5.1%)
Similar to food and fashion, the beauty and personal care spaces also perform well conversions-wise.
There is, however, a high barrier to entry for new brands who are yet to win their target audience's trust.
After all, customers in this space probably already have a brand they prefer. Unless you're introducing a product that's visibly different from the ones already available, it can be challenging to convince new customers to switch.
The average ecommerce conversion rate in beauty and personal care is 5.1%.
Factors Affecting Ecommerce Conversion Rate in Beauty:
- Brand loyalty. Once you earn your customers' trust as a beauty brand, it's substantially easier to bring them back in for repeat purchases. But if they're already loyal to another brand, it's much harder to pull them to your side.
- Personalization. Beauty brand customers highly appreciate personalization, be it in your marketing or website UI design. It's all about making customers feel like the product is tailored to them.
- Customer support and post-sales service. Beauty customers are also very particular about customer service. They want a company that can readily answer their questions and provide requested information, like return policies and product application instructions.
4. Pet Care (2.67%)
Similar to the beauty niche, the pet care space in ecommerce also relies heavily on brand recognition.
The conversion rate might be lower at only 2.67%, but that's mainly because customers don't buy pet products often as much as they do with cosmetics and personal care items.
Factors Affecting Ecommerce Conversion Rate in Pet Care:
- Brand loyalty. One of the biggest concerns that pet care customers have is the product's compatibility with their individual pets. Once they find a match, getting them to try something else can be difficult.
- Social proof. Pet owners value personal recommendations from their peers. In turn, showcasing positive reviews or implementing referral marketing will help boost your conversion rate.
- Trust signals. Certifications, original research, and statistics help pet care brands win the trust of their target audience. These elements can be displayed on product pages, blog posts, or anywhere throughout the checkout process.
5. Luxury & Jewelry (1.23%)
The luxury goods category, such as jewelry and designer brands, also has a relatively lower conversion rate compared to other niches.
Ecommerce stores in the luxury space can't depend on urgency or practical value propositions to generate conversions. That's why the average conversion rate in this niche sits at only 1.23%.
Factors Affecting Ecommerce Conversion Rate in Luxury:
- Product Authenticity. Buyers of luxury goods need reassurance that they're paying for genuine products. There's no point in buying from an online store that sells shady, branded items when there are hundreds of alternatives sites offering the same products.
- Brand recognition. The "luxury" label doesn't come easily, especially at higher price points. On the flip side, earning that status will have a lasting impact on your ecommerce website's sales.
- Product quality. In general, consumers of luxury products deeply care about the product's visual appeal as well as the quality of materials used. Checking these boxes can increase conversions even if you focus less on practicality and comfort.
6. Home & Furniture (1.42%)
Customers also don't buy furniture and other home improvement products as often as fashion and food items. But unlike the luxury niche, there's still a practical (sometimes urgent) need for products in this category.
The average conversion rate for home products is slightly higher than luxury goods at 1.42%.
Factors Affecting Ecommerce Conversion Rate in Home:
- Product presentation. There's a reason why the biggest ecommerce brands in this niche only use top-quality visual assets on their website. For one, home and furniture products are something that customers will see every day, making visual appeal a key decision-maker.
- Product quality. It's no secret that customers in this space value product quality — particularly in terms of durability. They view home products as long-term investments, which is why they concern themselves with product aspects like materials and the manufacturer's reputation.
- Value for money. Products in the home and furniture category aren't exactly cheap, but they offer customers a tangible value in terms of functionality and longevity. The more you can prove these aspects of your products, the higher your conversion rate can climb.
7. Electronics (3.6%)
Electronics is a broad niche, encompassing a wide range of categories and price points.
You have low-ticket products that can be bought frequently, like cables and cases — as well as expensive items that can last months or even years (i.e., smartphones).
This explains the industry's average ecommerce conversion rate of 3.6%.
Factors Affecting Ecommerce Conversion Rate in Electronics:
- Price. The electronics niche is filled with budget-conscious consumers. That's why ecommerce companies that build their own products conduct extensive research to strike the perfect balance between cost-effectiveness and healthy margins.
- Reviews and recommendations. The buyer's journey in the electronics niche includes a lot of self-guided research. Apart from customer reviews, your audience will also look at "unboxing" videos, in-depth comparisons, and other resources to reinforce their purchase decisions.
- Shipping and returns. Electronics can get damaged during shipping — and savvy customers of these products know it. While they value fast deliveries, they also care about the company's shipping process and return policy.
What Drives High Conversion Rates?
In the list above, we covered some of the industry-specific factors that affect ecommerce conversion rates.
Addressing these factors should be a top priority for businesses in these industries. At the same time, there are a handful of crucial components that can impact your conversion rate regardless of niche:
1. Loading Speed
Website performance, particularly loading speed, is one of the biggest game-changers in ecommerce conversion rates.
Here's how:
- Faster loading speed reduces bounce rate. Statistics show that bounce rate can increase by 32% with just a loading speed difference of 2 seconds. That's a good chunk of potential customers leaving just because your website is a tad too slow.
- Speed directly affects conversion rate and Average Order Value (AOV). In a study by Deloitte, a 0.1-second improvement in loading speed directly improved retail conversion rates by 8.4%. In addition, it also increased AOV by a considerable 9.2%.
- Website performance has an exponential impact on user experience. Studies show that users perceive slowness to be worse than it actually is. As a result, ignoring a slow web page not only turns customers away — it also discourages them from revisiting your site in the future.
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2. Mobile Optimization
Modern ecommerce largely depends on mobile traffic, with 76% of online shoppers coming from smartphones.
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Without proper mobile optimization, you're neglecting the experience of the majority of your customers. This, of course, will have a noticeable impact on your ecommerce conversions.
3. Audience Targeting and Intent Matching
Even if you have a website that loads fast and performs well on mobile devices, your conversion rate may still fall below the average if you're pulling the wrong audience.
This can occur with misconfigured ad targeting — or, if your Search Engine Optimization (SEO) banks on non-commercial keywords. These are keywords that customers use when their intent is anything but to make an online purchase, like doing research or navigating to a specific website.
4. Checkout Experience
5. Remarketing Strategies (or The Lack Thereof)
In simple terms, remarketing is an approach to marketing that targets users who interacted with your brand before — thus, expressing an interest in your products.
It is a surefire way to reach high-quality leads and, in turn, bolster your conversion rate.
Unfortunately, not all ecommerce brands realize the potential of remarketing in terms of connecting with prospective customers. This causes them to miss out on optimal conversion rates.
Strategies to Improve Your Conversion Rate
At this point, you know more than enough about ecommerce conversion rates — what it is and which factors affect it.
Before we end this post, let's go over a few things you can do:
- Simplify the checkout experience. Customers abandon the checkout process due to unnecessary friction, like requiring signups or asking too much personal details. Consider streamlining the experience by keeping it simple and enabling customers to finalize their purchase with the least amount of required information.
- Check your Core Web Vitals. Google's Core Web Vitals ensures you track page performance and understand how it translates to real-world user experience. Use these metrics to underline potential improvement opportunities you can't afford to miss.
- Use A/B testing. A/B testing works by simultaneously launching multiple variations of your page. Run these tests to quickly identify which aspects of your pages work, what needs to be improved, and what should be scrapped.
- Personalize your marketing. With tools like Google Analytics 4, you can get to know your ecommerce audience on a granular level. Analyze important datasets, like their preferred devices, language, location, and interests to tailor your marketing and landing page optimization strategies.
How Nostra Can Help
Ultimately, tapping into industry-specific conversion rate benchmarks only allows you to identify whether or not your ecommerce website is underperforming.
What really matters here is what you decide to do about that information.
Here's a tip: Get the most results with the least amount of work with Nostra AI.
Using our Edge Delivery Engine, your website assets can be loaded in milliseconds — not just to local users, but to 95% of the world's internet-connected population.
Unlock your online store's conversion potential. Click here to book a demo today!