When you run an e-commerce website, you naturally want to generate as much traffic as you can. The more hits you get on your website, the more opportunities you have to convert sales. But of course, traffic alone is just the first step. Ultimately, the conversions themselves are the goal.
That’s why every e-commerce company has a vested interest in conversion rate optimization or CRO. There are a number of steps that any e-commerce company can take to boost its CRO, foremost among them choosing the right CRO tools and selecting the proper business structure.
To that end, this post will highlight the ways in which LLCs are uniquely positioned for e-commerce success. Then, we’ll highlight three real-world LLCs that have demonstrated great success in optimizing their conversion rates.
Why Choose the LLC Structure for Your eCommerce Business?
When you begin generating business income on the basis of self-employment, you’re automatically qualified as a Sole Proprietor. That’s fine when you’re just starting out, but if you wish to scale your business and boost your conversion rates, you’ll definitely want to opt into LLC status sooner or later.
So what is an LLC? An LLC, or Limited Liability Company, is one of the most popular formats for small business owners in the United States. When you register your company as an LLC, you establish it as its own legal entity. In other words, there is a legal distinction between your business and its owner; not so with a Sole Proprietorship, where you effectively are the business.
So what does all of this mean for e-commerce? The LLC structure has a number of built-in benefits that can help you scale your company and boost your conversions. For instance:
- The LLC format allows you to shield your personal assets from potential creditors or lawsuits, allowing you to invest in your business with a bit more confidence and peace of mind.
- When you start an LLC, you can actually accept and receive payments on behalf of your business, e.g., to a real business bank account and not your personal checking account.
- In short, the LLC format provides a lot of built-in respectability and legitimacy. LLCs come across as “real” businesses, not side hustles or hobbies.
The bottom line for e-commerce merchants: Choosing the LLC format can be an important first step toward scalable success.
How to Establish Your LLC
The specific steps required to start an LLC can vary from one state to the next, but in brief:
- You’ll need to choose a name that isn’t already in use by an LLC in your state.
- It is mandatory that you choose someone to serve as your Registered Agent.
- You’ll need to file Articles of Organization with your state and pay the filing fee.
- You may wish to create an Operating Agreement, though this is more of a “best practice” than a legal requirement.
- It’s highly recommended that you establish a separate business banking account.
With questions about any of this, consider hiring an LLC formation company. For more details, seek out the current LegalZoom LLC cost.
Case Studies: How Top Sellers Optimize Conversion Rates
Once you have established your LLC, you will be ready to use tools and execute strategies to boost your e-commerce CRO.
Just to be clear: When we talk about CRO, exactly what are we talking about?
Essentially, CRO is all about optimizing an e-commerce site to bring in more sales. There are countless ways to go about this, and most e-commerce businesses employ different strategies for different pages: For example, you might optimize your checkout process, your blog, your product pages, and more.
A well-tuned CRO strategy will yield a number of benefits, including:
- Improved sales.
- Cost savings.
- Enhanced Google visibility.
- Increased awareness of customer needs and pain points.
With all of that said, what are some specific ways in which famous brands have juiced their conversion rates? Consider three compelling case studies.
1. Somnifix
There’s more than one way to optimize conversions. One tactic is to ensure that more leads actually complete transactions. But another strategy is to increase the average order value (or AOV) of each transaction; in other words, you can try to get more customers, but you can also try to convince each customer to spend a little more money.
That’s exactly the route that was taken by Somnifix, a company that provides just one product: Breathing strips to help minimize mouth breathing during the night. Though the company focuses on just one thing, it offers three different packages, each one sized and priced differently.
Somnifix’s approach to CRO was to redirect more and more customers to buy the high-dollar packs instead of the smaller, cheaper ones; but how, exactly?
Essentially, they redesigned their entire user interface, embedding visual call-outs and hierarchies to highlight the value of the more high-dollar packs. The company also provided a streamlined checkout process, minimizing friction and ensuring that those AOV rates were actually stable.
The result: An AOV increase by an astonishing 27 percent, with the more expensive packages increasing in popularity by as much as 200 percent.
2. Cooksmarts
A second CRO case study comes in the form of Cooksmarts, a subscription-based meal company. Basically, users sign up for the site and select a meal plan that aligns with their nutritional goals and dietary needs. Cooksmarts then furnish them with grocery lists, recipes, and other valuable resources.
Like a lot of subscription-based services, Cooksmarts offers a free trial, with the goal of generating as many paid subscribers as possible.
The company improved its conversion rates with a unique, even unorthodox strategy: They started asking for user credit card information on the front end, not after the free trial period ended. This helped to “qualify” sign-ups, winnowing out those who weren’t pretty serious about a long-term commitment. It also helped free trial members feel more engaged with their Cooksmarts experience.
The risky strategy paid off in a big way, with Cooksmarts seeing their free-to-paid conversions uptick by a staggering 91 percent!
3. Localizer.co
For our final CRO case study, consider the incredible success of Localizer.co.
This SaaS company offers a very simple value proposition. Their product allows companies to embed a simple snippet of code into their websites, making it possible for customers to translate the website into literally any language.
To boost their conversion rate, Localizer.co took a long hard look at their homepage, which is where most of their signups began. What they discovered was that their signup process was pretty inefficient, with the vast majority of users who began the process never completing it.
They solved the problem by providing a much clearer way for users to understand the value of Localizer.co, specifically providing a way for users to test/visualize their translations during the signup process. By improving the user experience in this way, embedding more of an “aha!” moment, the company saw its signups increase by 81 percent! Major CRO success!
Other Ways to Boost CRO
These case studies show that there are countless ways for LLCs and other e-commerce businesses to increase their conversion rates. Here are just a few of the general strategies and principles you might consider for your own e-commerce brand:
- Verify that your website offers robust speed and consistent performance, minimizing friction and frustration in the user experience.
- Try to post social proof or appeals to authority throughout your site, improving your customers’ confidence.
- Ensure a strong, clear Call to Action structure throughout the site, guiding the user’s journey through the sales funnel.
- Raise your AOV with bundle packages, reward programs, and different discount or promo opportunities.
- Ensure your e-commerce site performs well across all browser and device types. Responsive design is an absolute must!
- Double-check that your site is secure and that it has all the right encryptions in place to protect user privacy. Again, boosting consumer confidence is essential for boosting CRO.
- Provide a concise checkout funnel, removing any unnecessary points of friction in the checkout process.
- Invest in making your e-commerce site as SEO-friendly as possible, focusing on internal linking, keyword use, and general UX improvements.
- Consider the use of AI chatbots and other tools that can provide around-the-clock sales support.
The bottom line: CRO is a crucial component of e-commerce sales. And there are always countless ways to improve the conversion rates for your online store. Use these guidelines to get started.
Make CRO a Top Priority for Your e-Commerce LLC
As you think about ways to improve the success of your e-commerce store, there are two critical considerations to keep top of mind.
- First, legal structure matters … and for most e-commerce stores, the LLC is the way to go.
- Once you have your LLC established, there are a number of comprehensive strategies you can use to improve your rate of conversion.
Start moving forward with your CRO strategy today!
