Funnel Analysis
Ecommerce conversion funnels
Define shopping funnel stages and counting rules, then use stage gaps to guide investigation without mistaking them for checkout failures.
An ecommerce conversion funnel shows how an eligible group progresses through selected shopping stages.
Use it to find where to investigate.
A gap between stages shows observed non-progression under the funnel rules.
It does not explain why shoppers stopped.
Choose the journey
Start with the question.
To examine shopping from product interest to purchase, use stages such as product view, basket addition, checkout entry and purchase.
To examine checkout, begin at checkout entry.
Include only the shipping or payment stages the store actually presents.
Express checkout may skip a basket page or a separate shipping step.
State whether the funnel counts users or sessions.
Shopify’s Conversion rate breakdown uses sessions.
Default funnel metrics
Shopify’s Conversion rate breakdown funnel chart supports metrics in a fixed order.
The order is all sessions, sessions with cart additions, sessions that reached checkout, and sessions that completed checkout.
Metrics added beyond these do not display in the funnel visualisation.
Each step’s conversion rate divides sessions for that step by total sessions, not by the previous step.
The Reached checkout step, for example, uses sessions that reached checkout divided by total sessions.
Set entry and sequence rules
A closed funnel requires entry at the first stage.
It also requires progression through later stages in order.
An open funnel permits entry at a later stage.
Check the platform’s specific rules before comparing either view.
Shopify describes its open Conversion rate breakdown as including sessions whose steps occur in any sequence.
Record the chosen stages and entry rule with the result so comparisons use the same definition.
In Shopify’s open funnel, a session still counts in the Reached checkout step if a visitor reaches checkout directly without adding items to the cart.
Read the gap
For two consecutive stages, show the count reaching each.
Calculate the difference as a share of the earlier count.
Keep that stage-to-stage rate separate from a purchase rate based on the funnel’s starting population.
For example, if a hypothetical closed funnel has 200 checkout entrants and 150 purchasers, its observed gap is 50 entrants, or 25% of checkout entrants.
That does not mean 50 payments failed.
Some shoppers may have left, purchased later, followed an untracked route or encountered an error.
Order and payment records are needed to investigate those possibilities.
Compare the same funnel across suitable periods and keep the underlying counts visible.
Note changes in traffic, stock, promotions and the site.
For Shopify session trends spanning its 21–23 September 2026 measurement rollout, treat the change in session measurement as a possible break in comparability.
The rollout changed several session rules.
Sessions are based on continued customer activity rather than ending at midnight UTC.
Sessions without a pageview are now counted, such as a customer going directly to checkout from a cart link.
Identified bot sessions are filtered out by default.
A session ends after 30 minutes of inactivity.
Session counts can rise or fall as a result.
They can rise when sessions without a pageview are counted.
They can fall when identified bot sessions are filtered out.
They can also fall when activity across midnight UTC is counted as one session instead of two.
Orders, sales and customer counts are not affected.
Because conversion rate is calculated from sessions, it can change even when orders and sales have not.
A higher or lower rate after the update is not automatically good or bad.
Treat it as a new baseline for reviewing conversion rate trends.
Shopify reported the average ecommerce conversion rate at around 2.69% as of April 2026.
Ecommerce Conversion Metrics in Australia (as of April 2026)
- 10%Peak season delivery impact on checkout conversion
- 2025On-time delivery achievement by THE ICONIC (Peak ) — 98%
Delivery promises and checkout conversion
Delivery speed can affect checkout conversion.
Shipping delays can reduce checkout conversion by up to 10% during gift-giving seasons, compared with an average reduction of 3% to 5% across most of the year, according to Australia Post.
THE ICONIC achieved 98% on-time delivery during Peak 2025 by preparing three months in advance and locking in logistics capacity early.
Australia Post’s transit times let it offer later shipping cut-offs and trade longer.
Its COO, Rostin Javadi, says the store commits a delivery date once a customer reaches checkout.
Decide what to investigate
Check whether each stage was observable on the affected routes, then inspect the relevant journey and order evidence.
A large percentage from a small group may deserve less attention than a steadier gap affecting many shoppers.
Keep the funnel definition fixed when comparing groups.
The next question determines the deeper analysis.
Calculate adjacent-stage gaps, distinguish recorded checkout failures from unexplained exits, or compare the same funnel by device and traffic source.
Shopify’s behaviour reports include Searches by search query, Searches with no results and Searches with no clicks.
They show the terms visitors use and where the store returns nothing, so you can rearrange the store to help customers find what they are looking for.
In this guide
- Measuring drop-off between shopping stagesCalculate shopping-stage drop-off with consistent counts and clear denominators, then check skipped routes and missing events.
- Separating checkout failures from abandoned browsingSeparate browsing exits, incomplete checkouts and recorded failures using funnel observations alongside order and payment evidence.
- Comparing funnels by device and traffic sourceCompare funnel progression across devices and traffic sources while keeping segment definitions, source scope and cross-device limits clear.
