What is Conversion Rate?
Conversion rate is the percentage of visitors who become buyers. The global average is 2.5-3%, but industry, device, and traffic source dramatically affect it.
Formula
Example
If 200 out of 10,000 sessions resulted in a purchase, conversion rate = (200 / 10,000) × 100 = 2.0%. Important: sessions, not unique visitors — a returning visitor generates multiple sessions.
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Related Terms
AOV (Average Order Value)
AOV shows how much customers spend per order on average. The global e-commerce average is around $150, ranging from $68 to $349 by industry.
CPA (Cost Per Acquisition)
CPA shows the cost of acquiring a single purchase through advertising. CAC is broader: it includes all marketing costs.
Conversion Funnel (Sales Funnel)
The conversion funnel maps the customer journey from first touchpoint to purchase. You lose people at every step — the goal is minimizing that drop-off.
A/B Test
An A/B test compares two versions (A and B) with real users. It reveals which version drives better results — more conversions, higher AOV, or lower churn.