The ROI of SEO for E-commerce: Its Measurement and Improvement
SEO or search engine optimization is counted among the most significant components of the marketing strategy of any e-commerce business. So, when you optimize your site for search engines, you will facilitate the enhancement of the visibility of your website on SERPs. This, in turn, will help you generate more traffic and sales.
However, keeping track of the ROI from your SEO efforts is essential to ensure you are gaining a good return on your investment. Here, we will look at how to measure the ROI of SEO for e-commerce. We will also give you some valuable tips that will help you improve your SEO ROI.
Let us begin with a discussion of the various ways in which you can measure SEO ROI. Then, we'll offer some tips for improving your SEO ROI. Lastly, we will wrap up with a summary of the key points.
How to Measure the ROI of SEO for E-commerce
There are many ways to measure the ROI of SEO for e-commerce. The most popular method is to track how much organic traffic to your website has increased. You can track organic traffic and its evolution using Google Analytics.
Another method to measure the ROI of SEO is to keep an eye on the increase in sales. So, you should track the revenue the organic traffic brings in. In that case, you can better estimate the SEO ROI.
You can also keep an eye on metrics like your website's conversion rate if you wish to measure the return on investment of SEO. But what exactly is the conversion rate? It is the percentage of visitors to your site who take the action you want them to take, for example, making a purchase.
The Best Tips for Improving ROI of SEO for E-Commerce
Listed below are some valuable tips that will help you improve the ROI of your SEO campaigns:
Target the right keywords: When you include keywords for your SEO efforts, you must focus on targeting the right keywords. These should be relevant to the products and services that your business offers. You must also ensure that your target keywords have a high search volume.
Create high-quality content: SEO is significantly affected by keywords. So, you must ensure that the content you publish on your website is relevant, keyword-rich, engaging, and informative.
Track your results: You must also track the results of your SEO efforts to understand which strategy is working and which needs to be modified. You can do this with the help of tools like Google Analytics, which helps you keep track of your website's traffic and see how it changes over time.
What is SEO ROI for e-commerce?
The return on investment or ROI that an e-commerce business gets due to its SEO efforts is known as SEO ROI. It can be calculated by dividing the amount of money your business makes from SEO by the amount of money it spends on SEO.
Let us understand this with the help of an example. Suppose a business spends $100 on SEO and earns $300 from SEO. Then, the SEO ROI for this business is 300%.
The money that a business earns from SEO depends on a wide variety of factors. These include the keywords targeted, the amount of traffic you get from search engines, as well as the quality of the website content.
Furthermore, the amount of money a business may spend on search engine optimization will depend on many factors, like the services used, the time and resources required, and the level of competition in the specific industry.
What is a good ROI for e-commerce?
A good ROI of e-commerce will change from company to company. A standard range is usually somewhere between 200% to 300%. What does this mean? For every $1 a business spends, it must earn about $2 to $3 in return.
However, businesses must remember that this is just a general guideline. The actual ROI you will generate from SEO will change depending on various factors.
What is the ROI of SEO marketing?
Your business's return on investment (ROI) from its SEO marketing efforts is called the ROI on SEO marketing. You can calculate this easily by dividing the amount of money your business makes from SEO marketing by the amount you have spent on SEO marketing.
However, SEO marketing is considered a very broad term that includes different activities that a business performs to improve the visibility of its website and boost its ranking on SERPs.
SEO is worth it for e-commerce businesses. An interesting study by HubSpot has confirmed this as well. They found that the businesses who invested in SEO usually saw a 100% increase in the organic traffic they received. Moreover, as per the same study, these businesses also saw a 50% increase in leads.
Let us better understand this.
Organic traffic is the traffic coming to a website naturally from search engines like Google. Leads are the potential customers who have shown interest in the products or services of a business.
SEO can help businesses like yours increase the organic traffic and leads they receive on their website. This results in enhanced visibility as well as ranking. When this happens, the sales and the profits will likely increase.
Calculating the ROI of Your E-Commerce SEO Efforts
Multiple ways can help you calculate the return on investment from all your SEO efforts. The best way is to use the following formula:
For example, a company spends $100 on the SEO of its website. It generates $200 in the form of revenue from organic traffic. Then, the ROI from SEO for this business would be 200%.
Another way is to use a tool like Google Analytics to calculate your SEO ROI. Google Analytics will help track the visitors you receive on your website. It will also help you track the amount of money you can make from these visitors.
Ways To Measure SEO ROI for E-Commerce
Listed below are some of the best ways to measure SEO ROI for e-commerce:
Increased organic traffic: This is considered one of the most common ways to measure a company's SEO ROI. By tracking the number of visitors to a website from search engines, it is easier for you to know how your SEO efforts are affecting your traffic.
Increased sales: When you track how much you have earned from organic traffic, you can get a clearer picture of your SEO ROI.
Increased conversion rate: The percentage of visitors coming to your website that takes the desired actions is known as the conversion rate. By tracking your conversion rate, you can seamlessly check how SEO affects your ability to convert visitors into customers.
Return on ad spend or ROAS: ROAS refers to how much money a business makes on every dollar it spends on advertising. When you track your ROAS, you can see how SEO affects your ability to drive sales from paid search traffic.;
What are the key factors that affect the ROI of SEO for E-commerce?
Listed below are the key factors affecting the ROI of SEO for e-commerce:
Targeted keywords: The keywords you target significantly affect your SEO ROI. Hence, you must ensure that you are targeting high-traffic and low-competition keywords to get a better ROI.
Quality of website content: The quality of the content you publish on your website also significantly contributes to the SEO ROI. If your content is relevant, informative, and keyword-rich, your rankings will also improve on SERPs.
Backlinks: The links from other websites that bring users to your site are known as backlinks. These are important for enhancing not just the authority but also the ranking of a website.
Competition in your industry: The competition observed in your industry will also affect your SEO ROI. The more competition for the targeted keywords, the more difficult it will be to get a good SEO ROI.
What are some examples of how SEO has increased ROI for e-commerce businesses?
Here are some of the best examples of how SEO has increased the ROI of e-commerce businesses successfully:
As per a study by HubSpot, businesses who invest in SEO can expect a rise in organic traffic by 100% and an increase in the number of leads by 50%.
As per one more study by Moz, it has been observed that the businesses that rank high, i.e., on the first page of Google, can expect an increase in traffic by 300%.
Lastly, a study by BrightEdge has found that the businesses that optimize their website for SEO can expect a rise in conversion rate by 14%.
These were just 3 examples of how SEO is helpful to e-commerce businesses in improving their ROI.
What common mistakes can negatively impact the ROI of SEO for E-commerce?
Listed below are some of the common mistakes that negatively impact the ROI of SEO for e-commerce:
Targeting the wrong keywords: This is considered one of the most common mistakes e-commerce businesses commit. Targeting the keywords that have too high competition and are irrelevant to your website's content and Your products and services won't boost your SEO ROI.
Creating low-quality content: Content is another important factor affecting SEO. So you must not publish content without keywords, of low quality, or that is not relevant or informative.
Not building backlinks: Forgetting to build backlinks from other good-quality websites. Improving website authority and search engine ranking is possible with these. In the absence of high-quality backlinks, you may not receive the revenue that you had anticipated.
Not tracking results: It is also important to keep track of the results that your SEO efforts generate so that you understand which of your strategies are working and which aren't. Hence, you can make modifications for better results. If you fail to do so, you may not observe an increase in ROI and an inability to optimize for SEO.
Best Practices for Boosting the ROI of E-Commerce SEO
Listed below are the best practices for improving the ROI generated from e-commerce SEO:
Target the right keywords: Keywords are an integral part of SEO success; hence, you must target the right keywords to get good revenue down the line.
Create high-quality content: Content is also important to improve your SEO. Hence, businesses should ensure that the content they publish on their website is informative, engaging, and well-written.
Build high-quality backlinks: Another contributor to SEO is building backlinks, which can be built by various kinds of efforts like social media participation, guest blogging, and outreach.
Track your results: Lastly, you must also track your SEO results from time to time to know which of your strategies is working fine and which needs to be altered for the best results.
When you follow all of the best practices stated here, you can successfully boost the return on investment of your e-commerce business from your SEO efforts.
Frequently Asked Questions
It is referred to as a return on investment for your website. SEO marketing benefits you because you can develop some return on investment after some time. SEO is also useful for e-commerce strategies.
The return on investment for e-commerce depends on your SEO strategy. We all know the increasing importance of SEO for e-commerce. You can get effective investment results as per the SEO strategy.
You can increase investment returns through the right SEO strategy, like:
Using qualitative content
Use well-researched keywords and maintain their density throughout your content.
Using on-page and off-page optimization strategies
Ensuring the quick loading speed of your website
These are various factors that affect ROI in SEO.
Both investments are beneficial for businesses. You can get organic traffic by using SEO, which ensures a good return on investment compared to PPC. PPC is a paid advertising campaign that is less effective in SEO comparison.
You can hire an e-commerce SEO agency to increase your return on investment. An SEO agency ensures quality content, effective keywords, etc. An SEO agency is also helpful in developing traffic to your website, increasing its appearance on search engines, and developing a return on investment.
The competition in the market for the same keywords
Using content with quality and information
Use specific keywords.
Budget of any business
If you want a long-term benefit, investing in professional eCommerce SEO services for ROI is advisable. It becomes an investment rather than an expenditure for businesses. You can develop revenue through professional e-commerce SEO services.