We are relatively new to Shopify since we just opened shop in March. We are not fully accustomed to the entire platform and are still learning a lot of the terms / aspects to it. What exactly is a conversion, how does it take place, and what does it look like in real time?
Topic summary
A new Shopify store owner (opened in March) seeks clarification on what constitutes a conversion.
Key Definition:
- A conversion occurs when a visitor completes an action aligned with business goals—typically a purchase for online shops.
Conversion Rate Calculation:
- Expressed as a percentage of visitors who complete the desired action
- Example: 1% conversion = 1 purchase per 100 visitors
- Example: 0.2% conversion = 2 purchases per 1,000 visitors
The question about what conversions look like “in real time” remains unanswered in this exchange.
A conversion is the moment when a potential customer (a visitor) takes a step that directly contributes to your business goals (=sales). In the case of an online shop, this is usually a purchase.
The rate is calculated as follows:
1% conversion means that 1 in 100 visitors have bought something.
At 0.2%, it is just 2 out of 1000 visitors.