Shopify Conversion Rate: Conversion Rate by Industry

Shopify became one of the top eCommerce platforms largely because of its ongoing focus on developing a platform that converts visitors into customers. However, eCommerce businesses still need to refine and improve the platform, alongside running the right paid ads, to maximize their conversion rate.

Keep reading to learn the average Shopify conversion rate, see a few examples of successful stores, and start taking steps to increase your own conversions.

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What is a Shopify Conversion Rate?

Conversion rate (CVR) refers to the percentage of people who visited your website and purchased or completed another conversion action.

In the context of Shopify, a conversion typically refers to becoming a new customer by completing the checkout process. Therefore, your conversion rate demonstrates how well your eCommerce site converts visitors into customers. 

For example, a conversion rate of 3% indicates that out of 100 visitors, three became customers. That might seem low, but a 3% conversion rate might actually be ideal for your industry.

What is the Shopify Conversion Rate by Industry?

If we look broadly, the average Shopify conversion rate across all industries is 1.4%. This average came from a survey of 3,223 Shopify stores in 2022.

However, every industry has different price points and motivating factors influencing when a visitor will become a customer. For example, a company selling high-end consumer electronics might have a low conversion rate, but each conversion creates significant revenue.

So what is the industry breakdown of Shopify conversion rates? Unfortunately, Shopify does not release data about its customers' results, so we have to rely on infrequent third-party reports to see a breakdown. 

A study from 2022 discovered the following Shopify conversion rates by industry:

• Consumer electronics: 1.84%
• DIY and tools: 1.07%
• Automotive: 2.23%
• Home furnishings and decor: 2.3%
• Jewelry and cosmetics: 2.9%
• Sports: 3.1%
• Apparel and footwear: 4.2%
• Health and pharmacy: 4.6%

While not a complete breakdown of every industry, this report highlights the significant variance between industries using the same eCommerce platform.

Varos offers a unique way to stay on top of the average Shopify CVR for your industry. Our platform compares your Shopify KPIs right next to your peers. So you won’t be comparing your results in a vacuum or to annual reports but have the entire context behind your metrics.

Below, you can see how Varos shows your abandoned checkout rate directly compared to the competition. 

Other Shopify Metrics to Understand

Your conversion rate is dependent on other related stats. Let’s touch on a few of these KPIs so you have a broader understanding of other ways to increase your CVR:

• Abandoned checkout rate: How many people are getting close to converting, then deciding against it? Lowering this KPI directly results in increasing your conversion rate. In addition, you’ll remove any sources of friction and encourage more visitors to complete the checkout process.
• Bounce rate: Don’t make the mistake of overlooking your Shopify bounce rate. This metric describes the percentage of visitors who reach your site and immediately leave without navigating to another page. A high bounce rate indicates issues ranging from technical problems, slow loading speeds, or bad design.
• Returning customer rate: The average returning customer rate Shopify describes activity after conversion and reflects how well that first transaction went. This metric also affects your customer's lifetime value.

Examples of High Converting Shopify Stores

Shopify maintains a list of impressive stores using its platform to help inspire other stores and entrepreneurs. While we don’t know the stores’ actual conversion rate, being highlighted by the popular eCommerce platform is a strong indicator of success. Let’s briefly explore a few stores and talk about what we think they’re doing right.

Note: We are not affiliated with any of these stores.

Hiut Denim Co.

The U.K.-based shop uses a minimalist home page to showcase major jean categories. They go against the grain by not adding any obvious ‘click here’ buttons, but clicking on the image takes you to where you expect. While not generally advised, it creates a simplified interface that may benefit the company.

Additionally, a banner runs along the top of every page on the site promising ‘free repairs for life.’ That banner is an ongoing persuasive element that works with everything else happening on the page.

Tentree

Tentree is an environmentally-conscious company offering sustainable clothing and promises to plant ten trees for every purchase, hence the company’s name. They show a tree counter below the fold showing how many trees have been planted with a link to learn about these processes.

Similarly to Hiut Denim, they have a banner with a free shipping offer along the top. This serves as an ongoing prompt to reach the free shipping threshold while shopping.

Adored Vintage

As expected, Adored Vintage offers authentic vintage clothing alongside vintage-inspired modern pieces. The site's overall design conveys a cohesive aesthetic that matches its clothing selection.

Adored Vintage again takes advantage of the top banner to make an offer, just like both options. This company offers 20% off bestsellers, promoting a specific collection instead of a sitewide promotion.

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How to Increase Your Shopify Store Conversion Rate

Seemingly endless elements go into creating a high-converting store, including design, navigation, and marketing campaigns. 

You don’t need to tackle all of them at once, but if you strive to have a high conversion rate Shopify, it’s well worth continually improving your site to get the best conversion rate. So let’s explore powerful ways to build a Shopify store that converts.

Optimize Your Design

The design of your store plays a significant role in determining your conversion rate. Make sure your store is visually appealing and easy to navigate so customers can find what they’re looking for or browse everything you have available.

Shopify gives you a headstart, but you still need to choose the right theme for your industry and make dozens of other design decisions that optimize your store to encourage visitors to become customers.

Additionally, we saw a running theme in our store examples — use the top banner to highlight a specific promotion, ongoing special offer, or free shipping threshold. These banners serve as a consistent CTA as visitors navigate your site.

Offer Discounts and Promotions 

Discounts and promotions are an effective way to entice customers into making purchases. Promotions can include free shipping, a free included warranty, or a buy-one-get-one-for-free offer. You don’t always need to lower the sales price to entice visitors to hit ‘checkout.’ 

Additionally, discounts and promotions for a limited time help create urgency. Give visitors a reason to become customers now rather than later.

Create Compelling Site Content

Content marketing is an essential part of a successful ecommerce strategy, yet often overlooked. Don’t rely on product pages to act as content. Instead, create a blog or news section to showcase your authority and highlight recent developments at your company.

Try creating content that educates and informs customers about your products. Regardless of what you’re selling, it’s likely that your customers won’t be experts about it. So teach them with your content, earn their trust, and persuade them to buy your products.

Leverage Varos for Real-Time Shopify Conversion Rate Benchmarking

The Shopify conversion rate by industry isn’t static but constantly changes when a new visitor becomes a customer. Relying on sporadic reports won’t give you enough context into your real-time CVR — you need real-time competitor benchmarking to truly understand how you’re doing.

Varos compares your Shopify KPIs right alongside other Shopify stores in your industry. Below, you see how our platform compares your average order value (AOV) alongside your peers:

Ready to have more data to drive informed decision-making? Sign up with Varos or schedule a demo today to get started.

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About the Author

Yarden Shaked

Co-founder & CEO at Varos

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