When it comes to making more sales of your handmade products, they are only 2 things that really matter:
This last one (turning your views into sales) is something I refer to in a lot of videos as your “conversion rate”. It was recently brought to my attention that many of you are not actually 100% clear on:
That’s exactly what I cover in this video. Let’s dive in!
Today I want to run you through everything you need to know about your conversion rate. I also have a free calculator you can download so you don’t have to worry about the math at all. Make sure to grab it.
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A conversion rate is the number of people that will turn into customers for every 100 visitors. In other words, the percentage of visitors to your shop that become customers.
So if for every 100 visitors to your shop, you are making 2 sales, your conversion rate is 2%.
If for every 100 visitors to your shop, you are making 5 sales, your conversion rate is 5%
Conversion rate = (number of sales/visitors)x100
Example:
If you had 6 sales this month and 342 people visited your shop, you conversion rate is: (6/342)x100=1.75%
Knowing your conversion rate helps you make strategic decisions. You can bring as much traffic and get as many views to your shop as you want, if your conversion rate is really low, you’re NOT going to make sales. You’re better off making improvements to your shop to put the rate up before putting more efforts into bringing traffic.
Conversely, if your conversion rate is looking great, you know you can invest more time and even money (e.g. in paid ads) intro getting more traffic to your store as you know it will generate more sales.
The industry average is between 1 – 3% but it really depends on the actual data that you are using. Not all platforms count visits, views and visitors in the same way. Depending on the data that you use, you should expect a slightly different number.
For example, if you sell on your own website, make sure that you’re connected to Google analytics and that you look for unique visitors to your shop. If you use Etsy, you want to use the number of your visits, not your views, because views are different than visits or unique visitors. In other words, if you get a thousand views to your shop, this isn’t necessarily a thousand different people (that would be great!). It’s more likely that it is somewhere around 500 or 600 people who clicked around your shop and visited different listings. So if you use views to do your calculation, it’s normal that your conversion rate would be around 1%, but if you use visitors or unique visits, then you should be at around 3%.
Anything above that and you’re doing great. Anything below that and you might want to make some improvements. Again, don’t forget to grab the free calculator – it’ll do the math for you. Once you’re done and you know what your conversion rate is, let me know below: are you happy with that number or do you think you need to make some improvements?
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Grab this free shop’s conversion rate calculator
Good video Deb. Very clearly & simply explained. My current Conversion Rate, for this month, is 5.04%. Naturally everyone always wants more, but, I am satisfied with it.
Yes that’s great! I just saw that on Youtube too, well done 5% is NOTHING to be ashamed of, many makers would love to have that 🙂