The conversion rate formula
Conversion rate = orders ÷ sessions × 100. Both numbers must cover the same dates. If you take orders from your store admin and sessions from Google Analytics, check that both use the same time zone, or a busy evening can land on the wrong day.
Sessions, users or orders: pick one denominator and keep it
The number you divide by changes the result more than most stores expect:
- Sessions (visits) is the standard. One person who visits three times counts three times. Most benchmarks use this.
- Users (people) gives a higher rate, because the same person's three visits count once. It is useful for high-price products that people research over several days.
- Orders or transactions go on top of the fraction, not under it. Count orders, not items: one order with four products is one conversion.
Do not compare a session-based rate with a user-based one. A store at 2% per session can be at 3% per user with no change at all.
Worked example
A store had 12,000 sessions and 252 orders last month, with an average order value of $70.
- Conversion rate: 252 ÷ 12,000 × 100 = 2.1%
- Revenue: 252 × $70 = $17,640
- One percentage point is worth: 12,000 × 1% × $70 = $8,400 a month
- At a target of 2.5%: 12,000 × 2.5% × $70 = $21,000, which is $3,360 more a month with the same traffic
That last number is the useful one. It tells you how much you can spend on fixes before they stop paying for themselves. Our CRO ROI calculator takes it further and shows the payback time.
Typical ecommerce conversion rates
Littledata's Shopify benchmark data has put the average Shopify store near 1.4%. Published averages move from year to year and from source to source, so treat the table below as rough ranges, not targets:
| Store type | Rough range | Why |
|---|---|---|
| Food, drink, consumables | 2% to 5% | Low price, repeat buyers |
| Health and beauty | 2% to 4% | Repeat purchases, known brands |
| Fashion and apparel | 1% to 3% | Size doubts, lots of browsing |
| Electronics | 1% to 2% | Price comparison across stores |
| Furniture, luxury, high price | Below 1% | Long research before a big purchase |
What a good rate depends on
- Price. A $20 product converts more often than a $2,000 one. That is not a problem to fix.
- Traffic source. Email and returning visitors convert several times better than cold social traffic. A big ad campaign can lower your rate and still make money.
- Device. Mobile usually converts lower than desktop. If the gap is very large, look at the mobile product page and checkout first.
- Your own history. Your rate last quarter is a better benchmark than any industry average.
If your rate is far below the range for your store type, something on the site probably stops people from buying. Our guide to a CRO audit shows how to find it, page by page.
Method: orders ÷ sessions × 100 for the same period; the revenue figures assume the same traffic and average order value.