What is the conversion rate in the context of e-commerce?

In the context of e-commerce, the conversion rate specifically refers to the percentage of visitors to a website who complete a desired action. This action could be making a purchase, signing up for a newsletter, or completing a form, depending on the goals of the website. For a business, understanding the conversion rate is crucial as it helps measure the effectiveness of marketing strategies and website design. A higher conversion rate indicates that a higher proportion of visitors are being persuaded to take the desired action, suggesting successful engagement and marketing efforts.

The other options, while related to e-commerce, do not accurately describe conversion rate. The number of visits to a website indicates traffic but does not account for whether those visitors engage meaningfully with the site. Total sales revenue reflects monetary success but again does not measure how many visitors are converting. The frequency of repeat customers provides insight into customer loyalty rather than the percentage of conversions from new visitors. Thus, focusing on the percentage of visitors completing desirable actions directly correlates with the effectiveness of e-commerce strategies.