E-commerce Glossary · 3 min read

What is Conversion Rate Optimization (CRO)?

Understanding Conversion Rate Optimization (CRO) in E-commerce

Quick Definition

Conversion Rate Optimization (CRO) is the practice of getting more of your current visitors to buy, or take another action you want. You find the spot where shoppers drop off and test a change there. If it works, you keep it. The goal is more sales from the traffic you already have.

The Math CRO Is Trying to Move

Revenue comes from traffic, conversion rate and order value. CRO works on the middle one. It won't add traffic. It gets more from the visitors you already pay for.

Conversion rate is the number, and CRO is how you move it.

Example: Your store gets 10,000 visitors a month. 2% of them buy, so you get 200 orders. At $50 per order, that's $10,000.

You rewrite a confusing size guide and conversion rises to 2.4%. That's 240 orders and $12,000 from the same 10,000 visitors.

The rate rose 0.4 points, which is a 20% relative jump. When you share results, say which you mean.

Where CRO Happens on a Shopify Store

Most CRO work sits on the path from product page to cart to checkout. Shopify Analytics shows your online store conversion rate, plus how many sessions added to cart and reached checkout. That tells you which step loses the most people.

In our data from 958 Shopify stores, only about 8 of every 100 sessions reached the cart, and the average conversion rate was 2.2%. For practical fixes, see our guide to increasing Shopify conversion rate, or browse our list of the best Shopify conversion rate apps.

How CRO Checks If a Change Worked

Good CRO starts with a testable guess: "Shoppers leave the cart because the shipping cost surprises them." Change one thing, then compare. Often that's an A/B test: half your visitors see the old page, half see the new one.

Small stores need patience. With only a few orders, a jump can be pure luck, so wait for statistical significance before you pick a winner.

A Higher Conversion Rate Can Still Lose Money

A common mistake is treating conversion rate as the only score. A sitewide discount will often push it up, but your dedicated buyers, who'd have paid full price, get the discount too.

Now say a 15% sitewide code moves the same store from 200 to 220 orders. Each order now brings in $42.50 instead of $50. Revenue falls from $10,000 to $9,350, and revenue per visitor drops from $1.00 to about $0.94. You get more orders but less money, and profit takes an even bigger hit.

So watch revenue per visitor and margin alongside conversion rate. That's the idea behind Growth Suite, our app. It reads visitor behavior to predict who's unlikely to buy, then shows a time-limited offer only to those walk-away customers. More on that split in dedicated buyers vs walk-away customers.

Related Terms

Growth Suite for Shopify

Put Conversion Rate Optimization (CRO) into practice

Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective conversion rate optimization (cro) strategies.

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