E-commerce Glossary

Conversion Rate

Percentage of visitors who complete a purchase.

Conversion rate relates the number of orders to the number of unique visitors. Formula: CR = Orders / Visitors x 100. A 2% rate means 2 out of 100 visitors buy. In e-commerce, average CR ranges from 1% to 3% depending on the industry. Improving CR by 0.5 points on 100,000 monthly visitors generates 500 additional orders without spending an extra dollar on acquisition.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition

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