E-commerce Sales Funnel: Definition, Optimization & Metrics

May 20, 2023

You want people who visit your e-commerce store to load their shopping carts and spend a lot of money. That is natural. What if they do not, though?

Consumers have active lifestyles. They are always looking for information online, and they do not always take immediate action — at least not in the manner you would like.

For example, visitors may promptly leave the site. They are interrupted by a phone call or arrive at their destinations and turn off their mobile devices. Regardless of the circumstance, you cannot always acquire a consumer on the first visit.

However, you can incorporate them into your e-commerce conversion funnel. Commence the process of converting them from prospects to clients.

There have been inquiries regarding constructing and optimizing e-commerce conversion funnels on YouTube, LinkedIn, and Facebook. It is tougher than it may seem.

But here are everything you need to know about sales funnels and how to increase sales and conversions immediately.

What Is an E-commerce Sales Funnel?

An e-commerce sales funnel is a visual representation of a customer's journey, from the beginning stages to becoming a loyal customer. Consumers can move through the funnel at different speeds - some quickly go from leads to brand advocates, while others may take months or years to purchase.

Targeting Both Quick and Slow Buyers

By carefully constructing your sales funnel, you can cater to quick decision-makers and slow-paced buyers. While every business has a unique sales funnel, the basic structure is universal.

E-commerce Funnel Length: Product Price Matters

If you sell low-cost items like cosmetics or toys, your e-commerce conversion funnel will likely be short due to the affordability of the products. 

Conversely, if you sell luxury items such as expensive watches or vehicles, your funnel will likely be longer, as customers typically take more time to make high-priced purchases.

The Importance of Creating an Ecommerce Sales Funnel

Increase Conversion Rates

A sales funnel increases conversion rates and profit margins. It effectively guides your prospects by outlining their issues and presenting the solution. It operates autonomously and assists in converting prospects into customers after the journey.

Organize Sales Process

A sales funnel facilitates the organization of the sales process. It conveys the appropriate message at the proper time. It allows you to determine which parts of your sales process are ineffective and which are converting.

You can utilize the presented metrics to enhance your marketing strategy. Similarly, it helps you identify process flaws and areas where you lose prospects.

Increase Revenue

It raises your earnings. It organizes your sales and increases your profits relative to not having it. With a personalized purchasing process, you can better retarget lost consumers.

Do You Need a Sales Funnel for Your Online Store?

Yes, a sales funnel is an absolute necessity for your online store. Winners maintain scores, and prosperous companies always consider where their customers come from. 

A well-designed sales funnel can assist you in driving traffic to your website, increasing your conversion rate, building your customer base, and expanding brand awareness.

You need data to construct a funnel.

To acquire this information, you must accumulate email addresses using lead-generation strategies. Before you begin, consider where your leads typically originate.

On social media, do individuals interact with your business? Can you reach consumers through Facebook and Twitter paid ads? 

If you’ve determined where your prospective consumers "live," you can effectively target them and move them to the top of your pipeline.

What is the Average Conversion Rate for Ecommerce?

Since we are discussing the e-commerce conversion funnel, here is a visual representation of the average conversion rate a business can expect on its website from Smart Insights.

Out of the total sessions or visitors to your website, nearly 50% will view a product page, but less than 15% will add a product to their carts, as demonstrated by the e-commerce conversion funnel example. 

The final segment of the sales funnel, where just over 3% will conclude the transaction, can be viewed as a challenge, but it could be considered a lost opportunity.

Based on typical e-commerce conversion rates, e-commerce businesses can considerably enhance their product pages to persuade online shoppers to add items to their shopping carts. 

Moreover, they can benefit from optimizing the purchasing process so that more customers purchase the items in their carts.

4 Stages of an Ecommerce Sales Funnel

If you are unaware of the structure of your e-commerce conversion funnel, you cannot optimize each stage for optimum sales. 

Knowing which factors impact conversions dramatically enables you to optimize your sales funnel.

For instance, your research may indicate that social media, particularly Facebook, plays a significant role in conversions. Your large following pays close attention to your posts about sales and discounts.

Once you have this information, you can act upon it by increasing your Facebook activity and encouraging website visitors to follow you on Facebook. 

By placing a prominent call-to-action for Facebook, you capitalize on your existing website and attract visitors to your social network.

Now we will examine four essential funnel components, followed by optimization strategies.

1. Awareness Stage

Consumers in the awareness stage are brand-new to the market. They learned about your company via Google, a paid Facebook ad, or an influencer; this is where SEO strategies pay off.

Are you a legitimate business, or do you operate a scam? Do you sell a product that they may enjoy? Is there a problem you can solve? These people do not yet know.

You must immediately create an excellent first impression by informing these individuals about your business and positively positioning your brand. 

Consider yourself a gardener: this is the phase of your marketing plan in which you plant the seeds.

Here are a few ideas you can try.

  • Use Social Media

Social media platforms like Facebook, Twitter, and Instagram excel at generating new leads for e-commerce businesses. 

Use paid advertisements and pages or profiles to boost brand recognition and success. 

A recent Blue Fountain Media survey found that 90% of participants experienced increased exposure through social media marketing, leading to improved search engine rankings, brand reputation, inbound traffic, conversion rates, and brand loyalty.

  • Publish A Blog

Creating a new blog is an ideal way of organic marketing. You do not need a massive advertising budget to produce high-quality content; you just need to discover your brand's unique voice. 

Consumers routinely subscribe to blogs they find engaging, and they frequently share posts they find relevant. 

If you produce quality content and establish yourself as a thought leader, you will naturally attract visitors to your e-commerce website.

Additionally, blog posts make excellent advertorials. Advertisements disguised as editorial content are called advertorials.

They read journalistic articles and merge with host sites — magazines, blogs, and online newspapers — that explain costly or complex products. 

Successful e-commerce companies frequently host advertorials on affiliate blogs.

  • Run Facebook Loke-a-like Audience Ads

Regarding your marketing efforts, big data is your ally. Imagine marketing your product to one hundred thousand clones of your highest-paying customer today. 

Speculative fiction? In fact, no. Facebook's Lookalike Audiences make it simple to discover individuals whose characteristics match those of your current consumer base.

You start with a source audience, a custom group you create using data from page fans, pixels, or mobile app users.

Facebook AI analyzes the source audience and then delivers your ad to a brand-new audience with similar characteristics. Say hi to your improving conversion rates!

2. Consideration Stage

In this stage, customers are already familiar with you and your product offerings when they reach this point.

They have recognized a need, or "pain point," and are seeking remedies. 

People start to consider purchasing your products. Visitors might sign up for your newsletter or blog's Really Simple Syndication (RSS) feed.

You will see an increase in interest at the contemplation stage if you provide a paid content update.

Due to all of the above, more than a call to action is required here, so you must put in more effort, but you are getting closer to the checkout. 

Therefore, you must present these individuals with client endorsements, well-chosen product descriptions, and other persuasive content.

Try the following:

  • Use Social Proof

Social proof, in essence, is peer pressure with a nice ribbon on it. Speaking highly of oneself is one thing, but you build credibility when customers recommend your product. 

Examples of social proof are on-site testimonials, social media reviews, Trustpilot or Google reviews, and online comments.

To get the most remarkable results, provide as much favorable social evidence as possible on each product page. 

To establish a positive reputation, address customer service concerns and complaints quickly. You will be more successful if you appear to be successful.

  • Optimize Product Page

To boost conversions, it's essential to focus on optimizing product pages. According to a study by e-commerce experience platform Salsify, shoppers typically expect to see at least six high-quality photos and two videos for each product. 

As a result, it's vital to use clear, professional-looking images that are optimized for quick loading.

In addition to visuals, creating engaging and original product descriptions can strengthen your SEO strategy. 

Start sentences with action words and clearly illustrate how your products will benefit users. This approach helps establish a connection with potential customers.

Furthermore, incorporating drop-down menus and radio buttons for customization enhances the user experience when appropriate. 

Make sure to provide easy access to essential information such as measurements, shipping costs, and other product details. 

Finally, tie everything together with a compelling call to action, motivating shoppers to complete their purchase.

3. Purchase Stage

Customers in the middle of a purchase decision want to buy, but they are unsure if they want to buy from you. At least not yet.

Your responsibility is to make the decision as simple as possible for them at this point. You must show how you are superior to the competitors by offering better products, shipping alternatives, customer service, or rates.

When people get to your page, consider adding an exit-intent popup. Offer a discount, free delivery, or a limited-time bundle offer with these ingenious small adverts that pop up as visitors try to leave your website to increase your average conversion rate.

An important strategy to try:

  • Reduce Checkout Friction

Review your checkout page procedure. Is there no friction? Are there any unpleasant shocks waiting around the corner? 

According to a 2023 Baymard Institute poll, unexpected shipping costs and other unforeseen expenses led to the abandonment of shopping carts by 48% of buyers. 17% more people left sites because they thought the checkout process was too complicated and lengthy.

Get rid of hidden mailing fees, simplify your payment gateway, and accept multiple payment options, including PayPal, Apple Pay, Klarna, and cryptocurrencies. 

At this point, encourage account creation as well. Ask for the necessary information and remove as many form fields as possible.

Send emails to website visitors who abandon shopping carts, including coupon codes.

4. Retention stage.

A consumer's initial sale is not the end of your sales funnel. Because it is cheaper and simpler to keep an existing customer than to get a new one, repeat customers are a crucial component of the success of an online store. 

Thanks to this crucial, concluding stage of the marketing pipeline, your customer base will continue to buy from you.

A strong relationship is supported via point-based loyalty programs, value-driven client accounts, subscriber-only special offers, and recurring customer retention email campaigns. 

Use customer relationship management (CRM) software to foster relationships if you are an e-commerce business owner of a larger business.

  • Implement Cross-sells and Upsells

Use targeted email marketing to offer upsells, cross-sells, and add-ons to existing customers, basing recommendations on their purchase histories. Reach out and request feedback every 30 days, striking a balance between frequency and effectiveness.

Utilize loyalty plugins available on popular SaaS e-commerce platforms, customizing your loyalty program and promoting it extensively. Many online merchants also establish referral systems.

With a clear understanding of e-commerce funnel stages, focus on creating an optimized conversion funnel for maximum success.

Build an Optimized Ecommerce Conversion Funnel

You may create an e-commerce conversion funnel using these three phases to help you determine what your customers want and need. Let's examine each of them individually.

Step 1: Identify your Customer Journey

With statistics like user flow from Google Analytics, you can visualize the path taken by your customers. 

Determine what visitors do when they reach each page of your website:

  • When visitors initially land on your homepage, do they behave differently than on one of your product pages?
  • Which referring domains send the most visitors?
  • And how many interactions with products does the typical consumer have before purchasing?

Step 2: Map Your Funnel Stages to Conversion Triggers

Create a strategy for guiding customers through your sales funnel using the four stages mentioned above: awareness, interest, desire, and action. 

Specify the pages on your site you want to test and the content types you want to serve at each stage.

Step 3: Map Out Your Ecommerce Site

It is one of the most critical stages in creating a successful sales funnel. Your online store holds the key to creating successful sales funnels.

Start by outlining and picturing the route that potential customers must take. 

It makes the purchasing procedure more straightforward for you. Knowing the virtual route that your consumers would take will enable you to give them the information they need to move through the sales process.

Unfortunately, many online stores display various products without informational content to help customers or point them in the right direction. 

It slows down the purchasing process, resulting in low advertising ROI.

Your store should catch the interest of your clients by giving them pertinent product information and references from other clients.

Step 4: Define the Point at Which a Visitor Turns Into a Lead

A visitor becomes a lead for most e-commerce businesses when they provide contact information, typically an email address. If a visitor converts to an e-commerce lead at that point, you require a lead nurturing strategy.

Choose your strategy for assisting customers in moving from awareness to interest to desire to action. 

You should send your email subscribers content created for each stage to reach your target audience.

The Most Important KPIs for Conversion Funnel Optimization

You must regularly monitor key performance indicators (KPIs) to enhance your e-commerce conversion funnel. 

These stats show you how effective your conversion optimization is.

There are several KPIs, but keeping track of them all can feel like swimming in a data soup. No one desires that. 

Instead, monitor the indicators below to determine how good a conversion funnel is.


No one enters your conversion funnel unless they know your company.

There are several ways to drive visitors to your website, including social media, search, email forwards, and more, but you want that traffic to increase steadily.

Pay close attention to the direction from where your traffic is coming. Increase your marketing spending and time on content generation and SEO if your website receives a lot of traffic from search engines.

Perhaps Twitter drives a ton of traffic to your site. Increase your tweeting frequency and add more value to each one.

Conversion rate

How successfully your relevant audience responds to your offer is revealed by tracking your conversion rate. A discount or lead magnet could encourage a transaction or get people to join your email list.

You may better understand your audience by monitoring conversion rates across all offerings. 

A/B test several offers to see which generates the most interest, then implement what you have discovered into practice.

Bounce rate

How many of your website visitors leave after viewing only one page? Find out your bounce rate. You can lower the bounce rate by incentivizing visitors to view other pages.

Improve the "stickiness" of your website if your bounce rate is high. Place numerous calls to action for offers and internal links to other websites on your page.


Another crucial indicator to monitor is total sales.

How many people visit your website monthly makes no difference—hundreds of thousands are plenty. You will fail if you cannot persuade them to make a purchase.

Sales should ideally rise over time. You might see a few lulls due to uncontrollable circumstances like the seasons, but you desire an overall increasing trend. 

If that is not happening, concentrate more on the conversion funnel's action step.

Cart abandonment

You should also know how many visitors add products to their shopping carts before leaving the page without completing the transaction.

A high percentage of cart abandonment may indicate an issue with the checkout procedure.

Moreover, to streamline the checkout process, consider sending cart abandonment emails. 

You can also send a reminder email if customers abandon their shopping cart before checking out. 

Finally, encourage them to recover those missed sales, perhaps with a discount code.

See How Your Users Interact and Optimize Your Conversion Funnel

Data is crucial to optimize your e-commerce conversion funnel, as mentioned throughout this article. Without concrete evidence, you are left assuming what would be most effective.

You can use various strategies to gain a deeper understanding of your audience. 

You gain important knowledge about how visitors to your website engage with various elements, such as headlines, navigation, CTAs, and form fields.

Use strategies to boost lead generation and sales by optimizing your e-commerce conversion funnel. 

For instance, you can change a CTA if your visitors are not responding to it to see if performance changes.

Generate User Behavior Reports to Understand Page Performance

You may perform a variety of useful website user tracking reports to track user behavior and page performance. 

Analyzing your landing pages with heatmaps is one strategy to improve the user experience and optimize your e-commerce sales funnel.

Heatmaps show you which areas and components of your page are effective and which are not. 

Popular and unpopular interaction places, which indicate your visitors' overall click-, tap-, and scrolling activity, are shown in red and blue, respectively.

Heatmap analysis on your landing pages can help you find ways to enhance user experience and move users farther down the sales funnel.

Use Recordings to Improve User Experience

Understanding the intent-rich times in real users' journeys—part of your nonlinear conversion funnel—will help you improve your site.

Session records demonstrate how particular people move between pages on your website. 

Recordings are an effective tool for funnel monitoring since they show how people engage with various pages and elements and provide insightful information about their experiences and behaviors.

See the actions a visitor did immediately before leaving, what sites they were browsing through or getting stuck on, and where they clicked or what they missed. 

By seeing how a user uses and navigates around your website in this way, you may spot any obstacles like bugs or broken sections that might drive visitors to leave your funnel before converting.

Start A/B Testing Your Pages

Utilize the data you've gathered to conduct A/B tests on conversion-boosting elements like CTAs, determining the most effective styles or variations. A/B testing, or split testing, compares different solution versions to identify the best performer for improving KPIs like conversion and click-through rates.

A/B testing is a structured approach to running controlled experiments. It helps identify issues, test potential solutions on actual users, and ultimately select the best option. 

Even minor changes, like text or button color, can significantly impact user responses.

Gather user feedback and analyze A/B testing data using both qualitative and quantitative methods. Use these insights to develop a strategy that drives success and improved metrics.

Best Practices for Your Ecommerce Sales Funnel

Moving prospective and existing customers through the various stages of the sales process until they are prepared to purchase your items is the core purpose of your sales funnel. 

But, how persuasive your sales funnel is will largely determine whether they choose to do business with you.

Here are five best practices to follow when you build your online store's sales funnel and increase your e-commerce website's revenue.

Use Marketing Funnel Tools

Use marketing funnel tools to build effective sales funnels and hit more goals in your e-commerce business strategy. Designing marketing funnels for your sales and landing pages is made simple by marketing funnel solutions, which also optimize lead generation and conversion rates.

The best e-commerce company tools for marketing, selling, and shipping your things online are marketing funnel tools. They enable faster creation of effective sales funnels employing funnel options catered to your company's needs.

Identify your Target Audience

Selecting a target demographic is crucial for your online store's success. Focus on attracting customers who will use your products and services. 

By identifying your target market, you can tailor your sales funnel to emphasize relevant selling points. 

This knowledge helps improve your offerings and increase website leads. 

Conduct market research and create engaging content for your target audience to make your funnel more persuasive.

Use Social Proof

Social proof is a powerful marketing tool that boosts trust and credibility among potential buyers. 

Modern consumers trust peer opinions more than brand claims. 

To reinforce your sales funnel, use social proof that strongly supports your product, preferably from your largest customer segment. 

For example, if 80% of your customers are male, use social proof from male consumers.

Incorporate social proof throughout your funnel, especially if your product or service faces skepticism. 

Testimonials from customers are more persuasive than statements from your team.

Improve Customer Journey

A good user experience can convert website visitors into paying customers. If you provide a positive experience for your prospect throughout their journey, they will likely become your client. 

Several resources are available to assist you in providing a positive experience for your potential client.

The platform for Giosg's Sales Acceleration is one of them. Among other advantages, this platform assists you in raising the average order value, lowering the cart abandonment rate, and increasing sales.

Keep your Sales Funnel Updated

When someone buys one product, they are more likely to buy more, which is a marketing reality.

As a result, you can sell more than one item at once by creating an effective sales funnel with upsells, cross-sells, down-sells, next-sells, and order bumps.

It is a substantial benefit because it increases average order value, satisfies consumer wants, and strengthens marketing initiatives.

FAQs: Ecommerce Sales Funnel

What is an ecommerce funnel?

Simply put, a visual representation of your customer journey is what an ecommerce sales funnel is. Customers start at the top of the sales funnel and work their way down, one step at a time until they become repeat clients.

How do you create an e-commerce sales funnel?

A series of actions known as an eCommerce funnel is created to assist an online store in turning visitors into consumers. Depending on the eCommerce platform you use and the resources available, you may either manually build the steps or have them made automatically.

What are the 4 stages of the sales funnel?

An e-commerce sales funnel has four primary phases: Awareness, Consideration, Purchase & Retention. To feed each level of the funnel and naturally move individuals through each stage, you need marketing activity that is expressly created for that stage.

What are the different types of e-commerce funnels?

E-commerce funnels are typically divided into acquisition, conversion, and retention funnels. Each type focuses on a specific stage of the customer journey, from attracting prospects to converting them into customers and retaining their loyalty.

Conclusion: E-commerce Sales Funnel

You need to understand how visitors to your website interact with the funnel as they navigate through it to optimize your e-commerce conversion funnel effectively.

Creating the ideal funnels for your sales can undoubtedly be difficult and daunting. 

Yet, investing the time to develop a sales funnel that reflects your company's objectives and the demands of your target market pays off handsomely. 

Keep it simple, specify your target audience, and incorporate social proof into your funnel. With these efforts, you can build a strong sales funnel to enhance your company's performance.

Written By
Kim Pañares

Create Stunning Videos Easily

Skyrocket your video marketing efforts today

OFFEO Video Templates

Create stunning animated social media videos in afew clicks

Related articles