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Website & CRO

Why is my e-commerce conversion rate so low?

The short answer

If your site is decent, loads fast and still converts at around 1%, the problem is usually the traffic, not the website. Fixing site issues might get you a 20 to 30% lift. Putting the right creative in front of the right people does far more, so check who you're attracting before you pay for a redesign.

Why look at the traffic before the website?

Because most founders do it the other way round. I talk to founders who’ve spent a year improving their site, with better photos, tidier pages and a faster theme, and they’re still stuck around 1%, mostly on Meta traffic.

Those site fixes are worth doing. Anything broken or counterintuitive should be fixed. But at that kind of conversion rate, the biggest lever is almost always the traffic. The right creative in front of the right person can convert at 4% even on a broken website.

So when I’m diagnosing a store that converts far worse than similar brands, I strip out the variables that are hard to fix first. Let’s assume the UI and UX are fine, and the photography is okay enough to sell. What else could be broken?

What are the signs you’ve got a traffic problem?

The pop-up is a good place to start. If plenty of people visit but hardly anyone will fill in a pop-up for 10% off their first order, rebuilding your email flows won’t fix it.

I was reviewing a store’s Klaviyo account recently that had exactly this. Solid visitor numbers every month, a tiny conversion rate, and a pop-up almost nobody submitted. My first comment was that I actually think they have a traffic problem. When pop-up sign-ups are that low, it’s telling you there’s something else going on that you’re not seeing.

Cheap traffic that doesn’t convert is another sign. Cheap clicks feel like a win, but there’s usually a reason they’re cheap.

Speed can be a clue too. We looked at a store with a near-perfect speed score that was still converting well below brands like it. The site loading that fast was almost a red flag, because it ruled out the most common excuse and pointed straight back at the traffic.

How do you find the traffic that isn’t converting?

Break your analytics down from top to bottom. This is the order I work in:

  1. Look at conversion rate by traffic source and by landing page. Which pathways actually convert?
  2. Ask where the large cohorts of traffic are coming from and going to that aren’t converting. One big source of poor visitors can drag the whole store down.
  3. Check the true bounce rate, time on site and pages viewed for those cohorts. They’ll tell you quickly whether the traffic is rubbish.
  4. Split conversion rate by device and browser, and look for big gaps between them.
  5. Check your Meta pixel is firing properly.

Can Meta’s pixel learn to find the wrong people?

I think it can. What makes traffic cheap is the psychographic and demographic make-up of that audience. If the pixel optimised toward a certain kind of visitor at some point, Meta will go and find more of them, even if they don’t have the money or aren’t the right age. You end up talking to the broke uni student instead of the high earner.

The other possibility is technical. If a developer has deferred your scripts so the pixel loads last, add-to-cart and other signals might not fire back to Meta. Then it’s optimising on bad data. Check your tracking before you blame the creative or the site.

What if revenue is falling in line with traffic?

Then you know where to look. When revenue drops by about the same proportion as traffic, your conversion rate isn’t the problem, and your email probably isn’t either.

I had this on one account recently. Conversion was holding up and email was holding up. The thing that had dropped was traffic. That’s not good news, but it’s diagnosable.

My first question in that situation is always the same. What new video creative have we shipped in the last 30 days? If the creative engine has stalled, that’s almost always the root cause. Get the videos flowing again before you start pulling the website apart.

Should you still work on the website?

Yes, in proportion. Fix the low-hanging problems, anything that’s broken or obviously confusing. Then put most of your energy into who you’re attracting and what they see before they click. A redesign won’t fix an audience problem.

Nathan Frater

Managing director of Backbone, an e-commerce marketing agency in Auckland. Most weeks I'm on calls with Shopify brands working out what to fix next, and I write up the patterns here.

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