How to Increase Sales Online

A common question from our customers: What sort of an increase in sales can I expect from my ecommerce website?

This is a tough one. We will design and build you a cutting-edge e-commerce website however your success will depend on your business model, and the ongoing management of your new website once it is live.

The eCommerce Revenue Calculator

Using a ecommerce revenue calculator you can establish some general numbers using this formula with figures from your data.

Ecommerce Website Sales Conversion Funnel

The next question is - what values should you use to plug into this formula?
Let's imagine you are running a medium-sized online retail store. You have Google Analytics running on your website, which tells you the following:

Based on these numbers, the monthly revenue for this website will be $27,900.
Now, let's suppose you want to increase your sales. Where do you start?

What is a conversion rate?

Your conversion rate is the number of visitors/sessions on your website divided by the number of sales. Below is a chart that shows what good conversion rates that. This one is based on USD, but we've found it's pretty accurate for most dollar-based currencies like NZD and AUD.

Ecommerce Website Conversion Rate Chart - source:


Your eCommerce Conversions by Traffic Source

First you need to understand where your current sales are coming from. Knowing this, you can focus your energy on driving more of your high-converting traffic sources to your website.

Different traffic sources will have different conversion rates. With Google Analytics reporting you will see your conversions by traffic source and your average transaction value.

Armed with this information (knowing your highest conversion rate traffic source) you then direct your marketing efforts at that source. For example, your email marketing campaigns may have a typical conversion rate of 5%, whilst Facebook has a conversion rate of just 2%. This indicates clearly that you’re better off spending your marketing time and budget on the size of your email database rather than getting more Likes on your business Facebook page.

Increase your Website Traffic

Your sales should increase at more or less the same rate as your website traffic. With more website visitors you will sell more. You may however want to consider which type of traffic you want more of.

For example: You could run a Google Adwords campaign to drive targeted traffic to your website. Remember, with Google Adwords you pay per click, so you want to be sure that your conversion rate is high enough to justify that spend. If you are running Google Adwords, make sure you have linked your Adwords and Analytics accounts together so that you can view Adwords cost data inside Google Analytics which in turn lets you calculate the ROI on your Adwords spend.

You could also add more content to your website to drive more organic traffic. A great long-term strategy providing the content you add is relevant to your business and helps your customers. This can include writing a blog, creating FAQ pages, or improving the descriptions for your products. Every page you add will increase the traffic to your website. This is a long-term strategy however so don’t expect results overnight. Use Google Analytics to measure how well your new content is driving increased traffic to your website.

Increasing your email marketing database will drive more visitors to your website too. Using a newsletter sign up form on your website will achieve this. A database with people who are actively interested in the products you sell will generate sales, probably at a higher conversion rate than anything else you do. As your database increases by communicating regularly with relevant and useful information, so too will your sales.

Increase your eCommerce Conversion Rate

Conversion Optimisation is a fast-growing discipline that involves reviewing your online store on a regular basis to ensure that your site is easy to buy from.

If your conversion rate is less than the 3% we talked about earlier, you should be able to increase it through a number of methods:

Remove on-site Friction

Friction refers to anything that slows down or discourages customers from completing the purchase. Here is a selection of issues that could potentially put your customers off when shopping online on your website:

Addressing these few points is likely to increase your conversion rate.

Increase your Average Sale Value

eCommerce websites use a number of different ways to increase the average value of each sale. Here are some you could consider:

Your different traffic sources will have different average sales values. Google Analytics should be able to give you this information if you have configured ecommerce tracking correctly. Identifying a traffic source with a consistently higher average order value means you can focus on driving more traffic from that source.

'A' customers and 'B' customers

As you optimise your website you'll start to run out of 'A' customers and will get more and more 'B', 'C' and even 'D' customers. Unfortunately, this means that your hard work - while delivering higher overall sales - will actually start to dilute your conversion rates and average sales values.

You might think this is a bad thing - and it may mean the cost of obtaining those customers is greater than the margin on the sales you make to them. But, "A sale is a sale. More please!"

Here at Totali our team of experts are passionate about delivering high performing ecommerce websites the produce results. Speak to one of our eCommerce team to get the ball rolling for your new online store.