Conversion Rate
Conversion rate is the percentage of visitors who complete a desired action, most often a purchase, calculated by dividing conversions by total visits.
What conversion rate is
Conversion rate is the percentage of visitors who take the action you want, most often a purchase. If 1,000 people visit your store and 25 buy, your conversion rate is 2.5%.
It’s the clearest single measure of how well a store turns traffic into revenue, which is why it sits at the center of most ecommerce reporting.
Why conversion rate matters
Traffic costs money, so the value of every visit depends on what happens after the click. A small lift in conversion rate compounds across all your traffic without any extra ad spend.
It also exposes friction. When the rate drops on a page, something on that page (price, trust, speed, clarity) is getting in the way.
How to calculate conversion rate
Divide conversions by total visits, then multiply by 100. A store with 40 orders from 2,000 sessions has a 2% conversion rate. Stores track it for more than just purchases:
- Completed purchases, the standard ecommerce conversion
- Add to cart and reaching checkout
- Email and account signups
- Review submissions after purchase
Frequently asked questions
What is a good ecommerce conversion rate?
Most stores land between 1.5% and 3%. Industry trackers like IRP Commerce put the 2026 global average near 2%, but it varies widely by industry, price point, and traffic source.
Is a higher conversion rate always better?
Not on its own. Cutting prices or filtering out cold traffic can raise the rate while lowering profit. Read it alongside average order value and total revenue.