Traffic, Conversion Rate, Average Order PriceYou have your website and you are spending pretty much all of your waking hours trying to drive traffic to it. In a lot of scenarios this is exactly what you want to be doing,  but not all scenarios. Particularly with an e-Commerce site. Sometimes spending time driving traffic to your site will only net you a marginal increase on actual sales. In my eyes the first item to pay attention to is Conversion Rate.

Think of your website in terms of a funnel. You are trying to get as many people to come in the top of the funnel and you want as many of them as possible to exit out the bottom (make a purchase). Conversion Rate in this situation would be holes – or the lack thereof – in your funnel. Meaning, say you drive a million people to your site a month, if your conversion rate is low, it won’t matter how many people you bring to your site, they’ll get lost/lose interest/not purchase from you.

Rather then investing in traffic you should make sure your conversion rate is good (that your funnel has no holes). Once you have a healthy conversion (< 3%) Focus on traffic. Once you have a good level of traffic then you can look into your product and see how much people spend on average. If the number is low, see if there is a way to incentivize people to order a product that you have a better margin with.

These three things combined and working properly will most assuredly make your venture more successful.

Jamie Bates