Selling Online | Rahul Jain
Hi, everyone, this is Rahul from peach payments. Just to give you guys some background we are a payment service provider. We work with businesses like Zando, Orderin Safarinow.com, and many others, enabling them to sell a product or service to their customers through a digital channel. Very likely, if you shop online in South Africa, you'll have paid with Peach payments. Without potentially, you know, realizing it.
Today, what we're going to talk about is, one, what is conversion? And why is this one of the most important metrics that you as a business care about as an e-commerce business? And then what can we do in a simple form to optimize this from a checkout perspective.
So let's talk about what is conversion, right? So, conversion rate, basically is any percentage of visitors that land on your website, who complete a desired action. Now that desired action could be them filling out a form, contacting you, them buying a product, subscribing to your newsletter, whatever you deem as the end goal of that journey. So from an e-commerce perspective, when we think about conversion, we think about whether there was a sale that was a successful purchase, right?
And that entire journey of the user from the time they go to Google and search for, you know, all weather boots to the time they actually come to your website and make a purchase. In that entire journey, there's a lot of different things you can optimize along the way. Obviously, we can't talk about everything today. But we'll try to pick, you know, two or three of these most important items that at least we have some experience on from a Peach payments perspective, and what we can also share about.
So obviously, the next question is what is a good conversion rate?what are we really talking about? So Adobe did research , they did it for the consumer electronics report that was actually this year already. And across different industry segments, as you can see, the conversion rate varies quite a bit. But an overall average of 3% is what you know, they found across different industry segments to be a good conversion rate. Now, that means that of every 100 users that you managed to land on your website, only three convert in a purchase, it's half for if you're a consumer electronics retailer, you know, then it's about one and a half percent, if you're into gifting, it could be higher up to 4.95%. So what I also, you know, understood is that, at 2%, you're already at a good conversion rate for your merchants.But that sounds so low, right? It's like, wow, of every 100 users that come to my website, only three or two are actually going to make a purchase. So this kind of puts in perspective of really how many users you lose, while they navigate through your website, and you know, all the different touch points you have.
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