How to calculate conversion rate
Conversion rate % = (Orders ÷ Sessions or Clicks) × 100
Worked example
Last month your store had 12,000 sessions and 240 orders.
Conversion rate = (240 ÷ 12,000) × 100 = 2.0%
Two of every hundred visits ended in a purchase. Small changes here are worth a lot: at the same traffic, raising conversion rate from 2.0% to 2.5% means 300 orders instead of 240, a 25% increase in sales with no extra ad spend.
Why conversion rate drives ad profitability
Conversion rate links click costs to order costs:
Cost per order = CPC ÷ Conversion rate
With a $0.75 CPC, a 2.0% conversion rate gives a $37.50 cost per order. At 2.5% it drops to $30. Improving conversion rate effectively makes every click cheaper, and it raises the maximum CPC you can afford. See both effects with the CPC calculator and the target CPA calculator.
What is a good conversion rate?
It depends heavily on context, so be careful with any single benchmark:
- Price point. Expensive, considered purchases (furniture, electronics) usually convert at lower rates than cheap, impulse-friendly products.
- Traffic source. Returning visitors, email subscribers and branded searches typically convert far better than cold traffic from Display or broad prospecting.
- Device. Mobile sessions often convert lower than desktop, even though they make up most traffic for many stores.
- Category and season. Gift categories can spike in Q4; others are steadier.
- What you count. Sessions include bounces and browsing. Clicks from high-intent Shopping searches tend to convert better than sessions overall.
A more useful approach is to segment your own data: conversion rate by channel, device, product and landing page. Big differences between segments show you where to act.
How to improve your conversion rate
- Speed up product pages, especially on mobile. Slow pages lose shoppers before they see the offer.
- Show total cost early. Surprise shipping costs at checkout are a common reason for abandoned carts. State shipping and return policies on the product page.
- Strengthen trust. Reviews, clear photos, size guides, secure checkout signals and an easy-to-find contact page all help.
- Simplify checkout. Offer guest checkout and popular express payment methods, and remove unnecessary fields.
- Match ads to landing pages. In Google Shopping, the price, availability and image in your feed must match the product page exactly. Mismatches hurt conversion and can cause Merchant Center disapprovals.
- Cut low-intent traffic. Negative keywords and product exclusions remove clicks that rarely buy, lifting ad conversion rate.
- Retarget engaged visitors who viewed products or added to cart.
Measure it correctly
Bad tracking makes conversion rate useless. Make sure purchases are counted once per order, test orders are excluded, and your Google Ads purchase conversion fires on the order confirmation page with the correct value. Check that your store's order count roughly matches what Google Ads and analytics report.