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Checkout conversion rate
You've got a cart of items ready to buy, and something happens. The checkout process may get too complicated, or you may just change your mind. It’s a familiar scene in eCommerce, highlighting a big issue the checkout conversion rate. This metric tells you how often customers complete their purchase after adding items to their cart. It’s an essential part of the eCommerce Glossary because improving this rate can boost sales and growth. This article will help you understand the checkout conversion rate, how to calculate it, and how to improve it.
Tools like Instant's Shopify product page builder can help you. They can streamline the checkout process, making it easier for customers to finish their purchases.
Table of Contents
What is checkout conversion rate?
The checkout conversion rate is a crucial ecommerce metric that reveals how many shoppers complete their purchases after initiating the checkout process. It’s all about measuring the percentage of people who start checkout and hit “Place Order” within a specific timeframe.
Why does checkout conversion rate matter
Think of it as the heartbeat of your checkout flow. If customers start checkout but bail before the finish line, something might be causing friction in that final step. Checkout conversion rate is the opposite of metrics like checkout and cart abandonment rates, which tell you how many shoppers don’t complete their purchase. This one tells you how many do. Instead of focusing on lost sales, the checkout conversion rate helps you zero in on your wins and how to increase them.
Spotting patterns and making improvements
Tracking your checkout conversion rate over time helps you spot patterns. Drop-offs spike when a new shipping fee or a specific payment method is glitchy. If you streamline your checkout and the conversion rate increases, you’ve got proof that your changes worked. Understanding how many people make it through checkout and why puts you in a better position to optimize the process, reduce friction, and boost your bottom line.
How to calculate checkout conversion rate
Your checkout conversion rate reveals how many shoppers complete a purchase after starting the checkout process. It’s a key metric for understanding how adequate your checkout flow is and whether you're losing customers at the final step.
The data you’ll need
To calculate this, you need two pieces of data:
Completed Purchases: Orders where customers finish checkout and pay.
Shopping Carts Created: All carts are created, even if shoppers don’t reach the payment screen.
The formula: Simple Math, significant insights
Use this straightforward formula to calculate checkout conversion rate:
\[ \text{Checkout Conversion Rate} = \left( \frac{\text{Completed Purchases}}{\text{Shopping Carts Created}} \right) \times 100 \]
A real-world example
Imagine your online store had 500 shopping carts created last week, but only 200 led to purchases. Your checkout conversion rate would be:
\[ \left( \frac{200}{500} \right) \times 100 = 40\% \]
This means 40% of shoppers who created a cart completed their purchase.
Why checkout conversion rate matters
Tracking checkout conversion rate identifies where you might be losing customers. If product pages do well but conversion lags, audit your checkout experience. Are there unexpected fees, too many form fields, or a confusing layout? Improving this metric can boost your revenue without extra traffic or ad spend, just a smoother path to purchase.
How to increase checkout conversion rate
When the checkout process drags on, customers bail. A streamlined, single-page checkout can be a game-changer. Reduce the steps needed so customers can see everything in one go:
Shipping
Billing
Payment
It’s faster, simpler, and gets them through the process with minimal friction.
Offer transparent shipping costs
Surprise shipping fees are a top reason for cart abandonment. Offer free shipping, even if you need to adjust your prices slightly. If that’s not feasible, be upfront about shipping costs early on. Avoid unpleasant surprises that might lead to an abandoned cart.
Payment flexibility is key
Today’s shoppers want choices. Offer a range of payment methods, such as:
Credit cards
PayPal
Apple Pay
Google Pay
Buy-now-pay-later options
The more payment flexibility you provide, the more likely customers will find an option they prefer and complete their purchase.
Don’t forget mobile optimization
Shoppers are increasingly using their phones to check out. You're missing out on sales if your checkout page isn’t mobile-friendly. Ensure your design is clean, load times are fast, and your fields are easy to tap and fill. It’s all about making it easy for customers to complete their purchase on a small screen.
Build trust at checkout
Even at the final step, some customers need reassurance. Use trust signals like:
Security badges
Refund guarantees
Testimonials
To ease their minds. Let them know their data is safe, and you’ll increase the likelihood of them completing the purchase.
Optimize your Shopify store for conversions without breaking the bank with Instant's Shopify product page builder
Instant takes the heavy lifting out of designing Shopify pages. No need to dabble in code or hire a designer. This tool lets you build high-converting product pages with an intuitive drag-and-drop system. Imagine creating stunning landing pages or blog posts and doing it yourself. You keep the reins on your brand's look and feel without sweat.
Figma and beyond: Seamless integration
Instant doesn’t just stop at Shopify. It plays nicely with Figma and other eCommerce tools.
Want to bring in design elements or collaborate with your team?
No problem. This flexibility ensures that your store’s design is on point and aligned with your vision. You don’t have to sacrifice creativity for functionality.
Boosting checkout conversion rates
Let's talk results. With Instant, you’re not just making pretty pages. You’re crafting experiences that boost checkout conversion rates. High-performing landing pages and intuitive product displays make purchasing smoother for customers. The easier you make it for them, the more likely they’ll hit that “Buy” button.