An Empirical Research on The Determinants of Sales and Conversion Rate of Online Auction

摘要

This paper analyzes the factors which affect the sales and conversion rate (the proportion which visits convert to sales) of online auction and proposed the assumptions based on previous literature study. A Logistic model and a multiple regression model are built to analyze every factor's contribution to the probability of successful transaction and conversion rate. The results show that the probability of successful transaction and conversion rate between different kinds of products indeed exist a significant difference. Some products' visits can increase its probability of being purchased. And for the other products, many visitors visit these products for the purpose of information searching and lead to high visits but low probability of successful transaction. The most influential factor which affects conversion rate is sellers' reputation. And price is found to have negative effect on the conversion rate.