Online conversion rates of e-commerce sites were the highest in the beauty & skincare sector, at three percent in the first quarter of 2025. Food & beverage followed, with a 2.5 percent conversion rate. For comparison, the average conversion rate of e-commerce sites across all selected sectors stood at 1.7 percent. How does conversion vary by region and device? The conversion rate, which indicates the proportion of visits to e-commerce websites that result in purchases, varies by country and region. For instance, since at least 2023, e-commerce sites have consistently recorded higher conversion rates among shoppers in Great Britain compared to those in the United States and other global regions. Furthermore, despite the increasing prevalence of mobile shopping worldwide, conversions remain more pronounced on larger screens such as tablets and desktops. Online shopping cart abandonment on the rise Recently, the rate at which consumers abandon their online shopping carts has been gradually rising to more than 70 percent in 2025, showing a higher difficulty for e-commerce sites to convert website traffic into purchases. In 2024, food and beverage was one of the product categories with the lowest online cart abandonment rate, confirming the sector’s relatively high conversion rate. In the United States, the primary reason why customers abandoned their shopping carts is that extra costs such as shipping, tax, and service fees were too high at checkout.

According to a study focusing on travel and hospitality websites worldwide, desktop users recorded a higher average conversion rate than mobile users in that market in 2024. That year, while the conversion rate from desktop was almost *** percent, just *** percent of visitors who accessed travel websites via mobile finalized their booking. That said, mobiles generated the highest traffic share of travel and hospitality websites worldwide in 2024.

Online shopping conversion rates for health and beauty products stood just below *** percent from the first quarter of 2023 to the fourth quarter of 2024. In the fourth quarter of 2024, the conversion rate was at *** percent.

During the first quarter of 2025, *** percent of visits to e-commerce websites in the UK converted to purchases. In Switzerland, online shopper conversion rates stood at *** percent. Mobile takes over e-shopping Online shopping has long since established itself as an everyday activity of online life – this holds for both desktop and mobile. As of the fourth quarter of 2024, more than three-quarters of retail site visits worldwide came from smartphones and generated about two-thirds of online shopping orders. Based on mobile retail performance growth, it is only a matter of time before mobile overtakes desktop in revenue generation.

As of December 2024, the conversion rate on e-commerce sites was highest for tablet devices, with a rate of *** percent. Desktops were ranked second. The e-commerce sector had an overall conversion rate of *** percent.

In 2024, next to an add-to-cart rate of 10.5%, a cart abandonment rate of 79.3%, and a conversion rate of 2.2%, the eCommerce Benchmark KPIs for Fashion in India also consist of an AOV of US$62.9, a discount rate of 20.5%, and a return rate of 16.9%.

The global online shopping conversion rate for cosmetic products varied from the forth quarter of 2022 to the forth quarter of 2024. In the forth quarter of 2022, the conversion rate was at *** percent. It then fell to *** percent in the fourth quarter of 2023 before dropping to *** percent in the forth quarter of 2024.

In 2024, next to an add-to-cart rate of 9.4%, a cart abandonment rate of 74.9%, and a conversion rate of 2.4%, the eCommerce Benchmark KPIs in Pakistan also consist of an AOV of US$63.2, a discount rate of 16.1%, and a return rate of 5.1%.

In 2024, next to an add-to-cart rate of 9.1%, a cart abandonment rate of 62.6%, and a conversion rate of 3.4%, the eCommerce Benchmark KPIs in Australia also consist of an AOV of US$126.9, a discount rate of 10%, and a return rate of 8.9%.

Context

An education company named X Education sells online courses to industry professionals. On any given day, many professionals who are interested in the courses land on their website and browse for courses.

The company markets its courses on several websites and search engines like Google. Once these people land on the website, they might browse the courses or fill up a form for the course or watch some videos. When these people fill up a form providing their email address or phone number, they are classified to be a lead. Moreover, the company also gets leads through past referrals. Once these leads are acquired, employees from the sales team start making calls, writing emails, etc. Through this process, some of the leads get converted while most do not. The typical lead conversion rate at X education is around 30%.

Now, although X Education gets a lot of leads, its lead conversion rate is very poor. For example, if, say, they acquire 100 leads in a day, only about 30 of them are converted. To make this process more efficient, the company wishes to identify the most potential leads, also known as ‘Hot Leads’. If they successfully identify this set of leads, the lead conversion rate should go up as the sales team will now be focusing more on communicating with the potential leads rather than making calls to everyone.

There are a lot of leads generated in the initial stage (top) but only a few of them come out as paying customers from the bottom. In the middle stage, you need to nurture the potential leads well (i.e. educating the leads about the product, constantly communicating, etc. ) in order to get a higher lead conversion.

X Education wants to select the most promising leads, i.e. the leads that are most likely to convert into paying customers. The company requires you to build a model wherein you need to assign a lead score to each of the leads such that the customers with higher lead score h have a higher conversion chance and the customers with lower lead score have a lower conversion chance. The CEO, in particular, has given a ballpark of the target lead conversion rate to be around 80%.

Content

Variables Description * Prospect ID - A unique ID with which the customer is identified. * Lead Number - A lead number assigned to each lead procured. * Lead Origin - The origin identifier with which the customer was identified to be a lead. Includes API, Landing Page Submission, etc. * Lead Source - The source of the lead. Includes Google, Organic Search, Olark Chat, etc. * Do Not Email -An indicator variable selected by the customer wherein they select whether of not they want to be emailed about the course or not. * Do Not Call - An indicator variable selected by the customer wherein they select whether of not they want to be called about the course or not. * Converted - The target variable. Indicates whether a lead has been successfully converted or not. * TotalVisits - The total number of visits made by the customer on the website. * Total Time Spent on Website - The total time spent by the customer on the website. * Page Views Per Visit - Average number of pages on the website viewed during the visits. * Last Activity - Last activity performed by the customer. Includes Email Opened, Olark Chat Conversation, etc. * Country - The country of the customer. * Specialization - The industry domain in which the customer worked before. Includes the level 'Select Specialization' which means the customer had not selected this option while filling the form. * How did you hear about X Education - The source from which the customer heard about X Education. * What is your current occupation - Indicates whether the customer is a student, umemployed or employed. * What matters most to you in choosing this course An option selected by the customer - indicating what is their main motto behind doing this course. * Search - Indicating whether the customer had seen the ad in any of the listed items. * Magazine
* Newspaper Article * X Education Forums
* Newspaper * Digital Advertisement * Through Recommendations - Indicates whether the customer came in through recommendations. * Receive More Updates About Our Courses - Indicates whether the customer chose to receive more updates about the courses. * Tags - Tags assigned to customers indicating the current status of the lead. * Lead Quality - Indicates the quality of lead based on the data and intuition the employee who has been assigned to the lead. * Update me on Supply Chain Content - Indicates whether the customer wants updates on the Supply Chain Content. * Get updates on DM Content - Indicates whether the customer wants updates on the DM Content. * Lead Profile - A lead level assigned to each customer based on their profile. * City - The city of the customer. * Asymmetric Activity Index - An index and score assigned to each customer based on their activity and their profile * Asymmetric Profile Index * Asymmetric Activity Score * Asymmetric Profile Score
* I agree to pay the amount through cheque - Indicates whether the customer has agreed to pay the amount through cheque or not. * a free copy of Mastering The Interview - Indicates whether the customer wants a free copy of 'Mastering the Interview' or not. * Last Notable Activity - The last notable activity performed by the student.

Acknowledgements

UpGrad Case Study

Inspiration

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Clickstream Analytics Market size was valued at USD 1.62 Billion in 2024 and is projected to reach USD 5.3 Billion by 2031, growing at a CAGR of 15.95% from 2024 to 2031.

Global Clickstream Analytics Market Drivers

Growing E-commerce Industry: Adobe Analytics reports that companies using clickstream analytics saw an average increase of 23% in conversion rates and a 15% reduction in cart abandonment rates in 2021. Increasing online shopping drives the need for clickstream analytics to enhance user experience and optimize conversion rates. Rising Focus on Customer Personalization: According to the Interactive Advertising Bureau (IAB), digital advertising spending reached $189 billion in 2021, a 35.4% increase from 2020, with companies investing heavily in analytics to optimize their campaigns. Businesses are adopting clickstream analytics to provide personalized product recommendations and targeted marketing campaigns. Advancements in AI and Machine Learning: According to Gartner, organizations that have implemented real-time analytics reported a 30% increase in customer satisfaction scores. Integration with AI technologies helps in predictive analysis, enabling businesses to forecast user behavior and trends.

The statistic presents the conversion rate of in-app video and display advertising worldwide in first quarter of 2019. According to the data from Smaato, video ads had an install-to-purchase conversion rate of 4.8 percent, while display ads had a slightly lower install-to-purchase conversion rate of four percent.

As of September 2023, the health and beauty industry recorded the highest bounce rate compared to other e-commerce sectors. That month, health and beauty sites had a bounce rate of around **** percent. The overall bounce rate for e-commerce was approximately **** percent. The term "bounce rate" refers to the percentage of website visitors who leave the site after viewing a single page.

After the outbreak of the coronavirus (Covid-19) the source has analyzed overall online activites for the telecommunications sector in France during the time period between the **** of February and **** of March 2020, compared to the numbers generated before the outbreak from January *** to February **** 2020. The results for the online traffic up until the **** of March, showed a decline of around *** percent. The average duration of a session fell by around **** percent and the page visits per sessions by around ** percent. Conversion rates and the number of purchase sessions also saw a downfall in activity. Notably, The number of purchase sessions fell down to approximately ** percent. The following week the traffic had made a positive development (up to **** percent) but the average session duration continued to decline, reaching a value of ****** percent. The total conversion was at ***** percent on the negative side, bewteen the **** and **** of March, 2020. During the week between the **** and **** of March, the overall traffic worsened a little, compared to the previous week. The conversion rate declined again to ****** percent as of the 29th.

The source also analyzed the data for the media industry, calculating a traffic rise of about ** percent as of March 22, 2020. More information about

After the outbreak of the coronavirus (Covid-19) the source has analyzed overall online shopping activites for the online cosmetic industry in France during the time period between the 24th of February and 29th of March 2020, compared to the numbers generated before the outbreak from January 6th to February 16th 2020. For the week up until the 15th of March, the results for the online traffic showed a downfall of approximately 25 percent. The average duration of a session declined by around 17 percent and the page visits per sessions by around 12 percent. The conversion rate and the total conversion were also in decline.

The following week, a clear shift on the positive side was observed for the average session duration, with a 12.24 percent growth. The conversion rate crossed the 70 percent line indicating a trend in the cosmetics category.

During the week between the 23rd and 29th of March, the overall traffic improved a little, compared to the previous week. The conversion rate declined again from around 72 percent as of 22nd of March to 40 percent as of the 29th.

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After the outbreak of the coronavirus (Covid-19) the source has analyzed overall online activites for the automobile sector in France during the time period between the 24th of February and 29th of March 2020, compared to the numbers generated before the outbreak from January 6th to February 16th 2020. The results for the online traffic up until the 15th of March, showed a decline of around two and a half percent. The average duration of a session fell by around eight percent and the page visits per sessions rose by around five percent. The following week the traffic had made a drastic fall (down to 55 percent), the average session duration continued to decline, reaching a value of -23.67 percent. The total conversion was at -77.84 percent on the negative side, bewteen the 16th and 22nd of March, 2020. During the week between the 23rd and 29th of March, the overall traffic worsened a little, compared to the previous week. The conversion rate declined again to -84.2 percent as of the 29th.

The source also analyzed the data for the media industry, calculating a traffic rise of about 88 percent as of March 22, 2020. More information about

Cart abandonment rates have been climbing steadily since 2014, after reaching an all-time high in 2013. In 2023, the share of online shopping carts that is being abandoned reached 70 percent for the first time since 2013. This is an increase of more than 10 percentage points compared to the start of the time period considered here. Mobiles vs. desktops When global consumers shop online, they spend considerably more when doing so on desktop computers. In December 2023, the average value of e-commerce purchases made through desktops was approximately 159 U.S. dollars. Purchases completed on mobiles and tablets were of comparable values, ranging between 100 and 105 U.S. dollars. Even though consumers spent more when conducting their shopping on computers, they were more inclined to add products to their shopping carts when using mobile devices. Ultimately, mobile devices provide a convenient and more accessible way to shop, but desktop computers remain the preferred choice for more expensive purchases. Where do consumers shop online? Across the globe, digital marketplaces are shoppers’ number-one online shopping destination. As of April 2024, some 29 percent of consumers voted marketplaces as their favorite e-commerce channel, followed by physical stores and retailer sites. Looking at which retailers’ global shoppers prefer to shop at, amazon.com emerged as the world's most popular online marketplace, based on share of visits. The U.S. portal accounted for around one-fifth of the global online marketplace's traffic in December 2023. Amazon's German and Japanese portal sites ranked third and fifth among the leading online marketplaces, further demonstrating Amazon's dominance over the market.

In the measured time period, June 2024 saw the highest figures for online traffic to the fashion retail website zara.com. According to the data, desktop and mobile visits to zara.com reached nearly 102 million visits that month.

In 2024, the global e-commerce fashion industry is forecast to reach an overall market value of 781.5 billion U.S. dollars. According to estimates, the industry is expected to reach a value of over 1.6 trillion U.S. dollars by 2030.