Varos Glossary

Ecommerce Conversion Funnel

What is an Ecommerce Conversion Funnel?

The term "sales funnel" is often used in the context of online retail to describe a graphical depiction of the steps a client takes to complete a purchase. Customers start at the top of the sales funnel and work their way down via many touch points until they (ideally) become repeat buyers.

Some customers go fast through the sales funnel — from prospect to raving fan in a single interaction — when they discover what they've been looking for, make a purchase, and then enthusiastically spread the word about their new favorite company. Some customers may take years to make it to the final purchase page of your sales funnel.

Those who take their time making decisions may be sent through the sales process just as efficiently as those who make snap decisions if you design your funnel properly.

Stages of an Ecommerce Funnel

Typically, a funnel will have three or four levels. The sales process or "funnel" is a part of each company's marketing strategy, although each one is unique.

  • The Awakening Phase. People at the awareness stage are familiar with your company but haven't taken any further actions toward making a purchase (also known as the "upper funnel," "top of the funnel," or "ToFu").
    Television commercials, social media advertisements directed at individuals who haven't heard of you, affiliate marketing strategies, and viral social media content are all examples of awareness-driven marketing.
    Two things may be said about effective awareness campaigns:
    1. Finding the right audience who will be interested in buying.
    2. Getting their attention with a "hook" that makes them want to do more, like clicking an ad or sharing information. The awareness marketing campaign has been successful after the target audience takes one of these steps toward becoming a potential customer.
  • The Thinking Phase.  Once a potential customer makes an action toward making a purchase decision, such as reading a product description, they are said to be in the "middle of the funnel" (MoFu).
    At this point, you should demonstrate to the client that you have recognized their problem and are equipped to provide a suitable remedy. The end goal is for them to go further into your product's details. The term "marketing" encompasses more than simply ads.
    Such actions might include adding new photographs or features to the product page, soliciting feedback from satisfied customers to serve as social proof, or promoting similar products via comparative articles published on your website's blog.
  • The Conversion Phase. A potential customer who has reached the conversion stage (a.k.a., the "bottom of the funnel" or "BoFu") is very close to making a purchase, but they still have to go through certain internal barriers.
    The initial intention of encouraging them to do research has been abandoned. The aim is to get them to stop debating and make a purchase right now.
  • The Post-Purchase Phase. A common misconception is that once a buyer makes a purchase, the funnel is complete. Yet, as any expert marketer will tell you, customers are an integral element of the sales process. These customers are invaluable because they are likely to buy again, share their positive experiences online, and tell their friends about the product. One of the most profitable aspects of marketing is strategizing to persuade these individuals to change their behavior.

How to Build an Ecommerce Conversion Funnel

An ecommerce marketing funnel is a predetermined path that, when followed, increases the percentage of site visitors who become paying customers. A conversion funnel in ecommerce is a series of steps designed to increase the likelihood that a prospect will convert into a paying client.

Depending on your ecommerce platform and the resources at your disposal, the stages may be made either manually or automatically.

What is a Good Ecommerce Funnel Conversion Rate?

Average ecommerce conversion funnel benchmarks sit around 3.1-5%.

The industry as a whole reflects this trend, with the gifting sector bringing in the most money (4.9%) and the consumer electronics sector bringing in the least (1.4%).


Although it may be difficult to create a conversion funnel analysis initially, doing so may make it much simpler to fix any problems and increase revenue. Always keep in mind the four basic steps of a conversion funnel: exposure, interest, desire, and action.

Spend some time figuring out who you're trying to convert and what they need to see in order to convert, and then adjust your funnel accordingly.