eCommerce conversion rate by industry (2023 update)

Conversion rate is one of the most well-known and essential metrics to measure eCommerce store success. 

But what is a “good” eCommerce conversion rate? How do you compare to your competition? And how can you increase your conversion rate?

Let’s take a look at the eCommerce conversion rates by industry including retail, electronics, home appliances, home decor, personal care products, cars and automobile parts, food and beverages, and pet care. 

We have designed an infographic, to sum up, all the major statistics for the included industries. Pay close attention to the cart abandonment rates and average conversion rate by the device.

The average eCommerce conversion rate in 2023

The average conversion rate across sectors within eCommerce in 2023 is 2% to 4% average e-commerce conversion rates depending on the industry.

How to optimize your eCommerce conversion rate

The above eCommerce conversion rates by industry data will help you assess your online store’s performance. It will also help you understand your competitors. 

What’s the next step? Optimize your conversion rate and improve your store’s performance.    

1. Retail 

Retail including fashion, jewelry, shoes, and more command a major part of eCommerce stores. This industry sees a good average conversion rate (1.70%) and also sees a high average cart abandonment rate (76.39%).    

Furthermore, the fashion industry is set to hit a valuation of $672.71 billion by 2023. The fashion eCommerce industry has benefited from improved access to brands and a more personalized approach to shopping.

Read further:

i. Boost Fashion eCommerce (Product Page) Conversion Rate: 16 Proven Strategies

ii. Prime Day Marketing Ideas (for Shopify stores)

ii. 13 brilliant ways to overcome choice paralysis in eCommerce (2022)

2. Electronics and home appliances 

The average eCommerce conversion rate by industry is quite low, however, electronics and home appliances take in a good chunk of it, with a 2.41% average conversion rate. 

Unlike other eCommerce industries, electronics, and home appliances also benchmark a high average revenue per user with 111.60$. 

However, the industry struggles to retain shoppers and handle returns. Shoppers also find it difficult to resolve problems and often have negative reviews about customer service.  

Read further:

i. 17 retention strategies that actually work (for eCommerce)

ii. Reduce eCommerce returns with intelligent UX (+ smart handling ideas)

iii. 14 underutilized strategies for increasing customer lifetime value in eCommerce

3. Home Decor 

Earlier, home decor rarely saw a good conversion rate in online stores. Shoppers were always hesitant to purchase furniture and relevant products online as they are expensive and aren’t sure about the product quality.   

However, ever since the pandemic, when shoppers were stuck at home and couldn’t go to the shop to buy furniture, home decor brands saw a rise in sales. 

But now, the industry has stabilized, and home decor stores still see a good average conversion rate (1.04%). However, they also see a high cart abandonment rate (80.01%). 

Read further:

i. 20 reasons why your online furniture store has low conversions (+ ways to fix)

ii. 100 conversion rate hacks for eCommerce stores

iii. Why is your conversion rate dropping (& 36 ways to fix it)

4. Personal care products 

While the average eCommerce conversion rate by industry is quite low for most industries, personal care products boast a 3.17% average conversion rate.  

Some statistics to know:

Valued at $483 billion in 2020, the beauty industry is expected to cross $716 billion by 2025. 

The health & beauty category will also see a compound annual growth rate (CAGR) of 12.1% between 2021 and 2026. 

The online share of sales for brands in the health & beauty segment showed a rise of 16.5% post-Covid - it will further rise to 23.3% by 2025. 

Read further:

i. 40 High-converting Health/Beauty "Product Page" Examples

ii. Does infinite scrolling kill conversions? Here's what we found

iii. 22 ways to use visual cues to drive more conversions in eCommerce

5. Cars and automobile parts

Like some of the high-ticket products, the cars, and auto parts industry saw a rise in sales during the pandemic. 

Some statistics to know:

61% of consumers are open to buying cars online after the pandemic. 

The search interest for the term auto parts store grew over 197% in the last decade.

67% of customers read the returns and warranty pages before making a purchase. 

Read further:

i. 20 reasons your auto parts store has LOW conversions (+ ways to fix)

ii. 11 guaranteed ways to boost Revenue per Visitor (eCommerce)

iii. International eCommerce expansion: 15 commonly-missed action items

6. Food and beverages 

While the average eCommerce conversion rate by industry is mostly stable for most industries, food, and beverages see a 1.37% average conversion rate. 

Shoppers see purchasing food and beverages online as both a convenience and a risk. They can’t always guarantee product quality and if they find a favorite store, they are reluctant to try new brands. 

Also, they love to get discounts and believe certain benefits such as free shipping and easy returns as default options.   

Read further:

i. Promote your online store in the USA - 15 unique ideas

ii. Free Shipping: Still a conversion driver in 2023? (+ Brands Nailing It)

iii. Selling CBD online? 15 strategies to boost conversion rate

7. Pet care

With the pandemic and constant lockdowns, pet owners turned to eCommerce stores for their pet supplies. eCommerce pet supply stores give pet owners:

• Convenience 
• More choices
• Product information 
• Pricing comparisons that make the value clear
• Focus on customer relationships and community building

While pet care experiences a good enough average conversion rate (1.75%), surprisingly a majority of their sales are generated through mobile devices (69.5%) 

However, pet care owners still struggle to get substantial conversions. Shoppers often find a favorite store and are reluctant to change their preferences.   

Read further:

i. 20 reasons your pet supplies store has low conversions (60+ ways to fix)

ii. 17 *Underrated* conversion rate optimization ideas for eCommerce

iii. 15 creative ways to display eCommerce products (w/ brilliant examples)

Looking for some SEO-friendly strategies to get more from your organic traffic?

i. 3 eCommerce SEO mistakes to avoid and get more conversions 

ii. eCommerce copywriting: 23 inspiring examples from the US

iii. eCommerce site search: 18 improvements that prevent drop-offs (+ actual examples)

Bookmark the following blogs for more CRO inspiration in 2023:

i. Inclusive Marketing: 22 eCommerce brands that do it right

ii. 18 brilliant ways to use microcopy to boost eCommerce conversions

iii. Simplify online shopping for senior citizens: 11 UX ideas

iv. Multi-step vs single page checkout, which is better for your eCommerce store?

Read further: Holiday marketing blogs to create conversion-friendly CRO strategies

i. 2023 eCommerce calendar (& expert marketing advice for businesses)

ii. 13 underrated Easter and Spring marketing ideas (eCommerce)

iii. Mother's Day emails: 20 amazing examples (eCommerce)

iv. 9 super creative Halloween marketing examples (eCommerce)

v. 10 Boxing Day marketing ideas (+ examples) for eCommerce

vi. eCommerce marketing strategies (and brilliant examples) for Thanksgiving

vii. 25 creative examples of Black Friday deals

viii. Cyber Monday eCommerce: 12 *Last-Minute* hacks to boost conversions

ix. 20 slightly different Christmas emails & templates (eCommerce)

Frequently Asked Questions

1. What is a good ecommerce conversion rate for online stores?

An average conversion rate of 2%+ is considered a good e-commerce conversion rate, although it varies depending on the industry.

2. What is conversion rate optimization? And why is CRO important for eCommerce websites?

Conversion rate optimization is the process of optimizing your sites based on the visitor's behavior in order to increase the probability of the visitor taking the desired action on the page.

CRO is essential for eCommerce businesses because it directly impacts revenue. A higher conversion rate means more sales and leads, which can significantly increase revenue. It's also important because it can help you acquire customers at a lower cost.

3. Why do you need to understand eCommerce conversion rates by industry?

eCommerce conversion rates by industry data will help you assess your online store’s performance. You can see how to improve your store’s performance and get more conversions. It will also help you understand your competitors. 

4. What is cart abandonment rate?

Cart abandonment is when customers add products to their cart and starts a checkout process but leave before completing the purchase.

Cart abandonment rate is calculated by dividing the total number of completed transactions by the total number of transactions initiated. This rate will identify the percentage of users that leave before completing the checkout process. A high cart abandonment rate indicates a poor customer experience which affects the overall revenue of the business.

5. Why is your conversion rate low?

Here’s a quick glimpse at some of the most common reasons why your online store conversion rate is low -

• Lack of trust in the brand and/or product
• The copy fails to convey a convincing narrative
• The pricing does not seem fair or competitive
• The value proposition does not come out instantly
• Your cross-sell and upsell tactics seem far-fetched
• The UX does not cater to the ease of mobile users