Every ecommerce business owner wants to improve their checkout conversion rate. After all, it’s the final step before a sale is completed. But what does a "good" checkout conversion rate actually look like? And how does yours compare to industry standards?

The checkout process is a crucial moment in the buyer’s journey. At this stage, a customer has already decided to buy, yet many still abandon their purchase before completing the transaction. This is why understanding the industry average checkout conversion rate is essential. Knowing where you stand can help you set realistic benchmarks and develop strategies to optimize your checkout experience.

In this article, we’ll explore the latest industry averages, the factors influencing checkout conversion rates, and actionable strategies to improve them.

What Is Checkout Conversion Rate and Why Does It Matter?

Checkout conversion rate refers to the percentage of visitors who initiate the checkout process and successfully complete a purchase. It is calculated as follows:

Checkout Conversion Rate = (Completed Purchases / Checkout Initiations) x 100

For example, if 1,000 people enter your checkout process and 800 complete their purchase, your checkout conversion rate is 80%.

A strong checkout conversion rate indicates a smooth and frictionless buying process. A low rate, on the other hand, suggests there may be roadblocks preventing customers from finalizing their purchase, whether due to pricing concerns, technical issues, or a complex checkout process.

Industry Average Checkout Conversion Rate

The average checkout conversion rate varies depending on the industry, product type, and region. According to recent ecommerce benchmarks:

• The global average checkout conversion rate across industries is about 70-80%.
• Fashion and apparel brands typically see a 75-80% conversion rate at checkout.
• Beauty and skincare brands report an 80-85% checkout conversion rate.
• Home decor and furniture brands often experience a 65-75% checkout completion rate due to high-ticket items.
• Electronics and tech products tend to have 60-70% checkout conversion rates, as consumers often compare prices before making a final decision.

While these numbers provide a good benchmark, it’s important to track your own business’s performance and identify trends over time.

Key Factors Influencing Checkout Conversion Rates

1. Checkout Complexity

A long or complicated checkout process is one of the biggest contributors to cart abandonment. Every additional step increases the likelihood of a customer dropping off.

2. Payment Options

Consumers expect flexibility in payment methods. Brands that offer multiple payment solutions, such as Apple Pay, Google Pay, Buy Now Pay Later (BNPL), and credit/debit card options, tend to see higher conversion rates.

3. Shipping Costs and Delivery Time

Unexpected shipping costs can discourage buyers from completing a purchase. Providing clear shipping options upfront and offering free or express shipping can improve conversion rates.

4. Security and Trust Signals

Customers need reassurance that their payment information is secure. Displaying SSL certificates, trust badges, and customer reviews can build confidence in your checkout process.

5. Mobile Optimization

With mobile commerce growing rapidly, having a seamless mobile checkout experience is crucial. Slow-loading pages, non-responsive designs, or difficult form fields can lead to abandoned checkouts.

6. Guest Checkout Option

Forcing customers to create an account before purchasing can be a major friction point. Offering a guest checkout option can help retain conversions from first-time buyers.

Strategies to Improve Checkout Conversion Rates

1. Simplify the Checkout Process

A complex and lengthy checkout process is one of the main reasons customers abandon their purchases. Reducing the number of steps and only asking for essential information can significantly improve conversion rates. Autofill options, a progress indicator, and a one-page checkout can make the process more efficient. Additionally, eliminating redundant fields, such as requiring a phone number when it's not necessary, can remove unnecessary friction.

2. Offer Multiple Payment Methods

Different shoppers have different preferences when it comes to payment methods. Offering a variety of options, including credit and debit cards, digital wallets like Apple Pay and Google Pay, Buy Now Pay Later (BNPL) solutions, and even cryptocurrency, can cater to a broader audience. Ensuring a seamless payment process with minimal redirects can also prevent drop-offs due to security concerns or slow processing times.

3. Provide Transparent Pricing

One of the biggest reasons for checkout abandonment is unexpected costs, such as additional taxes, high shipping fees, or hidden charges. Displaying all costs upfront, including estimated taxes and shipping, ensures transparency and builds trust. Offering free shipping thresholds or incentives for larger purchases can also encourage customers to complete their orders without second-guessing their decision.

4. Enhance Mobile Experience

With an increasing number of users shopping via mobile devices, ensuring a smooth mobile checkout experience is essential. A mobile-optimized checkout should have easily clickable buttons, simplified navigation, and quick payment methods like one-click checkout or saved payment information. Additionally, reducing unnecessary pop-ups, minimizing loading times, and ensuring that forms are easy to fill out on small screens can help increase mobile checkout conversion rates.

5. Use Trust Signals

Shoppers need reassurance that their payment information is secure. Displaying trust signals, such as SSL certificates, secure payment icons, and customer testimonials, can help build confidence. Adding recognizable payment provider logos (such as Visa, PayPal, or Mastercard) near the checkout button can further reinforce a sense of security. Offering a money-back guarantee or hassle-free return policy can also reduce hesitation among cautious buyers.

6. Enable Guest Checkout

Many customers prefer not to create an account before making a purchase. Forcing users to register can increase abandonment rates, especially among first-time buyers. Allowing a guest checkout option speeds up the process and removes unnecessary friction. Once the transaction is complete, you can offer an easy way for customers to create an account for future convenience.

7. Leverage Exit-Intent Popups

If a customer moves to exit the checkout page, an exit-intent popup can help recover the sale. This could include a limited-time discount, free shipping offer, or a reminder of items left in the cart. These last-minute incentives can nudge hesitant buyers into completing their purchase rather than abandoning their cart.

8. Follow Up With Abandoned Cart Emails

Cart abandonment emails serve as a gentle reminder to customers who didn’t complete their purchase. A well-crafted email sequence can recover lost sales by offering incentives, showcasing product benefits, or providing a sense of urgency (e.g., “Your cart is expiring soon!”). Personalized subject lines and dynamic content based on browsing history can further enhance effectiveness.

Measuring and Tracking Checkout Performance

To improve checkout conversion rates, tracking and analyzing customer behavior is essential. Some key metrics to monitor include:

• Cart Abandonment Rate: This metric tracks the percentage of users who add items to their cart but do not proceed to checkout. A high cart abandonment rate suggests that users may be deterred by unexpected costs, lack of payment options, or distractions in the purchasing process.
• Checkout Abandonment Rate: Unlike cart abandonment, this metric focuses specifically on users who start the checkout process but fail to complete their purchase. A high rate here indicates friction points such as complex forms, a lack of payment methods, or security concerns.
• Time to Checkout Completion: Measuring the average time customers take to complete checkout can provide insights into usability. A lengthy checkout process might indicate that users are experiencing difficulties, leading to drop-offs.
• Mobile vs. Desktop Conversion Rates: With the rise of mobile commerce, it’s crucial to compare conversion rates between devices. A significantly lower mobile conversion rate suggests that your checkout process may not be optimized for mobile users.
• Payment Method Drop-Off Rates: Tracking which payment options users select and where they drop off can help identify gaps. If many users abandon checkout after selecting a payment method, you might need to provide more diverse or streamlined payment options.
• Error Message Tracking: Analyzing error messages users encounter during checkout can reveal common issues, such as invalid addresses, declined payments, or missing form fields. Addressing these errors can enhance the overall checkout experience.

Using tools like Google Analytics, Shopify Reports, Hotjar, and heatmaps can provide valuable insights into user behavior. Analyzing these metrics allows ecommerce brands to pinpoint weaknesses in their checkout process and make data-driven optimizations to boost conversions.

Closing lines

The checkout process is the final and most critical stage of the ecommerce journey. Understanding how your checkout conversion rate compares to industry standards can help you identify opportunities for improvement and drive more sales.

By streamlining the checkout experience, offering flexible payment options, optimizing for mobile users, and leveraging trust signals, you can significantly increase your checkout conversion rate. Remember, even small tweaks can have a big impact on your revenue.

If your checkout conversion rate isn’t where you’d like it to be, it may be time for a checkout optimization audit. Reach out to Daminico today and let’s turn more visitors into paying customers!