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DEC
What is a good conversion rate ?
Posted by Michael under Business Growth, Online Retail
Conversion rate is a critical measure in the success of an ecommerce website. Conversion rate = number of orders placed/number of visitors. According to research by Nielsen Online, the US sites with the highest conversion rates for January 2009 (as a percentage of unique website visitors) were:
Schwan’s, which is the premier site for home delivery of frozen foods and dairy products including ice creams, entrees, meats and desserts. It ships right across the USA. Conversion rate = 52.5%
Proflowers is hardly known outside the USA, but is the equivalent of interflora in the UK, you can send flowers for delivery from ProFlowers, or alternatively order plants, roses, and Christmas gifts to be delivered. Conversion rate = 27.3%
Quixtar is part of Amway Global and produces and sells Nutrilite dietary supplements, XS Energy Drinks, personal care, home care, air and water purifiers and Artistry cosmetics, relying primarily on person-to-person referral rather than advertisements for sale of products. Conversion rate = 22.4%
Blair.com – a 100 year old company, originally mail order, selling men’s and women’s clothing and household items, now largely an ecommerce business, it has a conversion rate of 21.8%
Office Depot is both a home and business to business supplier providing office supplies, print, furniture and office machinery. The online site has a conversion rate of 21.1%
Vitacost.com offers more than 800 brands and 26,000 vitamins, herbs, antioxidants, organic and natural foods as well as cleaning and personal care items with such mystifying names as natraceuticals and cosmeceuticals – which harness the power of medicine to the aspiration of personal beauty. The site’s conversion rate is 20.4%
DrsFosterSmith.com – from 1983, when three veterinarians got together to offer an online pet product catalogue, Drs Foster & Smith has grown to well over 600 employees and has a conversion rate of 20.3%
FTD.com bears the familiar Interflora logo but is in fact Florists’ Transworld Delivery a floral wire service, retailer and wholesaler – it actually bought out the Interflora cooperative in 2006. It has a conversion rate of 20.2%
Amazon is a Fortune 500 company and is considered to be the global leader in e-commerce. It sells everything from books and electronics to tennis rackets and diamonds and boasts a conversion rate of 17.2%
CDW is a reseller of technology products and services for individuals and business and has a dedicated arm that sells computers and associated products to the American government. CDW recently agreed to be acquired by a private equity firm for a value of over 7 billion dollars. Conversion rate = 16.9%
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December 13, 2009 -
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Slightly misleading figures in many ways, as they are based on visitor conversion rates rather than session conversion rates. For example, if I visit a site 20 times in a month and make 1 purchase, my actual conversion rate (in the usual sense) is 5% but under the above rules I would come out as having a conversion rate of 100%. The figures are also taken from a limited panel of visitors, rather than a complete set of actual data.
It was interesting to see that in the figures for June 2009, Schwan’s didn’t even make the top 10 (the 10th site on June’s list “converting” at 16.4%) which shows how much figures can vary with this method.
So, for me the Nielsen figures are useful as a basic month by month comparison (and as PR if you can get your site in there) but not much else. There’s just far too much real world visitor activity not factored into these figures to be able to compare them to your own e-commerce site.