When it comes to the eCommerce world, one of the most important yet under-appreciated hassles to sales is successfully driving visitors to click and take a look at the products. On the downside, data has revealed that, on an average, eCommerce portals have a 33.9% bounce rate. This eventually means that nearly one-third of all visitors that arrive at your business website abandon it without even browsing through your product inventory. However, on the brighter side, when an online shopper clicks to take a look at the product, the chances of closing the sale are increased.
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Around the World Wide Web, several studies have been conducted to offer eTailers with estimates when it comes to average website-wide conversion rates.
- For instance, a Q1 2015 Monetate report states that the eCommerce conversion rate across the globe is 2.32%.
- Bigcommerce, too, corroborates with the assertion by Monetate, thus suggesting that the widely accepted eCommerce conversion rate on an average is 2% to 3%.
- In the study by Wolfgang Digital 2014 eCommerce KPI Benchmarks, Alan Coleman and his competent team effectively analyzed 56 million visits spanning across 30 participating websites to arrive at the conclusion that the average conversion rate among the online portals that they studied was 1.40%.
Yet, the eventual research on product PCR (Page Conversion Rates) is extremely sparse. Without an ultimate resource that could assist eCommerce brands to set product page benchmarks, we decided to carry out our own study.
For effectively producing our first 2016 Product PCR Report, we accumulated data from 2,687 eCommerce portals that utilize Receiptful. Totally, these websites send 1.34 million receipts via the Receiptful platform every month, and they generate an estimated $848 million in sales on an annual basis. The average surveyed store sells nearly $315,600 worth of products each year.
Four major findings from our study are:
- With regard to the surveyed 2,687 online stores, the average PCR stands at 7.91%.
- eCommerce unicorns efficiently convert approximately half (49.73%) of the total product page traffic into eventual sales.
- The median PCR is 5.97% among the eCommerce portals.
- At the bottom end of the spectrum, eCommerce portals convert only 0.10 percent of the traffic that eventually hits the product pages.
Cross Tabulation: Store Sales and PCR
Excellent data is largely relative. To effectively produce a report that eCommerce portals of all sizes could utilize to enhance their businesses, we took our ongoing research a step further. Therefore, we segmented our online stores on the basis of their annual revenues and also accurately calculated each group’s maximum, minimum, average, and median PCR. Rather than effectively benchmark the performance of your website against the overall, average PCR, which is 7.91%, you can easily measure your success that is relative to your peers.
PCR Trends: Identification and Analysis
One important trend that we noticed was a positive and good correlation between store revenues and PCRs. On an average, eCommerce portals with high volume of sales, up to $500,000 on an annual basis, had a better PCR in comparison with smaller-sized stores.
What is the Reason for this Phenomenon?
A broad and accurate explanation for this could be that larger online stores possess more resources for investing in enhancing the customer experience and eventual conversion rates. On the other hand, smaller stores may not have sufficient resources to invest in CRO (Conversion Rate Optimization).
Mentioned below are three supporting arguments for this theory:
- With less than $20,000 in revenues annually, smaller eCommerce portals may only be able to successfully invest in optimizing and expanding zero to two channels of marketing. Simply put, their budgetary limitations prevent growth.
- eCommerce portals earning anywhere between $20,000 and $100,000 in sales every year have the ability to afford the price of initiation, management, and growth of multiple channels of marketing. Most often, they have the requisite creative as well as technical resources for optimizing their advertising efforts, conversion funnel, and overall customer experience.
- Digital retailers earning more than $100,000 in sales annually have bigger budgets to effectively tap into. These business entities have well-established brands and have effectively developed marketing campaigns that are fully integrated, successfully marrying online (SEO, affiliate marketing, display ads, partnerships) and offline (catalogs, print ads, direct mail) promotional strategies.
In the world of eCommerce, PCR is a bit of a catch-22 situation. You require money for optimizing your conversion funnel; however, achieving modest sales, you may not have enough time or cash for investing in growth. Instead, you may be excessively preoccupied with management of everyday operations. However, the good news is that one minor tweak to your product pages can drastically impact your PCR, which may also lead to enhanced performance for the remainder of your downstream metrics, including sales. This can eventually turn out to be a catalyst for successful expansion of your eCommerce portal from a part-time business to one that generates nearly six-figure annual revenues, with sufficient cash to effectively cover expenses and pay yourself a lucrative salary.