Understanding the ecommerce sales funnel: a 2025 guide

Think of the last time you bought something online. You probably didn't just stumble onto a product page and immediately click "buy." More likely, you discovered the product through a search or ad, compared a few options, read some reviews, and then made your decision.

That journey you took? That's the ecommerce sales funnel in action.

The conversion funnel represents every step a potential customer takes—from first discovering your brand to making a purchase and (hopefully) coming back for more. Understanding this process isn't just marketing theory; it's the blueprint for growing your online store.

In this guide, I'll walk you through each stage of the ecommerce funnel using a real-world example: the Logitech K400 Wireless Keyboard, a compact keyboard with built-in touchpad designed for controlling smart TVs and media centers. You'll learn what customers do at each stage, why they behave that way, and how it impacts your bottom line.

Note: Logitech is mentioned here purely as an illustrative example. We are not affiliated with or endorsed by Logitech.

What is the ecommerce sales funnel?

The sales funnel stages concept traces back to the AIDA model (Attention, Interest, Desire, Action), developed by advertising pioneer E. St. Elmo Lewis in 1898. While the framework has evolved for modern ecommerce, the core principle remains: customers move through a series of mental stages before purchasing.

Today's ecommerce marketing funnel typically includes these stages:

1. Awareness (Top of Funnel)
2. Interest/Consideration (Middle of Funnel)
3. Intent/Decision (Bottom of Funnel)
4. Purchase/Action
5. Retention/Loyalty (Post-Purchase)

Here's the reality: not everyone who enters the top of your funnel will make it to the bottom. In fact, significant drop-offs happen at each stage. But understanding why people drop off (and optimizing each touchpoint) is how successful stores increase their conversion rates.

Let's break down each stage.

Stage 1: Awareness (Top of Funnel)

Real-world example: the Logitech K400

Imagine someone's frustrated with their TV remote while trying to browse Netflix. They think, "There's got to be a better way." So they search Google for "best wireless keyboards for TV" or stumble across a blog post titled "Top 5 Wireless Keyboards for Smart TVs."

They're not thinking about the Logitech K400 specifically yet. They're just exploring what's out there.

Why this stage matters

At the awareness stage, customers are doing research, not ready to buy. They're casting a wide net, looking for information. Your job isn't to sell immediately—it's to capture their attention and position your brand as helpful.

According to consumer psychology research on the buyer's journey, people naturally start with broad searches when facing unfamiliar problems. They need education before they're ready for product pitches.

The connection to other stages

Awareness feeds into interest. Without knowing a product exists or understanding the problem it solves, customers can't move forward. The funnel narrows here because:

1. Search results are competitive
2. Only relevant content captures attention
3. Many visitors aren't in the right mindset yet

Impact on your ecommerce store

The good news: High awareness drives traffic and improves your SEO through increased site visits.

The challenge: Direct conversion rates at this stage are typically low. Most awareness-stage visitors leave without buying.

What to do: Focus on content marketing, SEO, and educational resources. For a Logitech retailer, this might mean creating comparison guides, how-to articles, or videos demonstrating wireless keyboard setups. Optimizing for keywords like "wireless keyboard reviews" or "smart TV accessories" can significantly boost organic traffic.

Stage 2: Interest/Consideration (Middle of Funnel)

What happens here: Customers now actively research specific options within the product category they discovered.

Real-world example: the Logitech K400

Our potential customer has moved beyond "I need something for my TV" to "I'm comparing wireless keyboards." They might:

• Browse your category page for "Wireless Keyboards"
• Read detailed product specifications
• Compare the Logitech K400 with competitors like the Microsoft All-in-One Media Keyboard
• Watch comparison videos or read user reviews

Why this stage works this way

This is where emotional and rational evaluation happens. Customers are building desire by weighing features, prices, and benefits. They're asking themselves: "Which option best fits my needs?"

The interest stage builds naturally on awareness. Once customers understand the problem and know solutions exist, they need details to narrow their options. This stage reduces overwhelm by helping customers focus.

The psychology: People need to feel informed before committing money. If information is scarce or confusing, they'll abandon their search or go to a competitor.

The connection to other stages

Interest bridges awareness and intent. It provides the depth needed to move from "I know this exists" to "I want this one." Drop-offs occur when:

• Product information is incomplete
• Comparison tools are missing
• Site navigation is confusing
• Competitors offer better resources

Impact on your ecommerce store

This stage improves engagement metrics like time on site and pages per session: both positive SEO signals. Smart stores use email capture and wish lists here to nurture leads who aren't ready to buy yet.

Optimization tip: Rich category pages with filters (price, compatibility, features) and detailed comparison charts keep users engaged. For the Logitech K400, highlighting unique features like the built-in touchpad and long battery life helps it stand out.

Stage 3: Intent/Decision (Bottom of Funnel)

What happens here: The customer is ready to buy. They've narrowed their choice to one product or a shortlist of 2-3 options.

Real-world example: the Logitech K400

At this point, the customer either:

• Searches directly for "buy Logitech K400 Wireless Keyboard" (high purchase intent)
• Navigates from your category page to the product detail page
• Reads customer reviews and checks product ratings
• Views product images and videos
• Verifies stock availability and shipping options

Why this stage matters

This is where SEO-optimized product pages shine. When someone searches "buy Logitech K400", they're ready to purchase, they just need to find the right store.

The intent stage follows naturally from consideration. After weighing options, customers need final verification: "Is this the right choice? Can I trust this seller?" Trust signals become critical:

• Customer reviews and ratings
• High-quality product images
• Clear return policies
• Security badges
• Detailed specifications

Decision psychology

Research from Harvard Business Review shows that too many choices cause decision fatigue. By this stage, customers appreciate clarity. A well-designed product page that answers remaining questions removes friction.

The connection to other stages

Intent is the natural culmination of the research phase. Without consideration, few customers would reach this stage (exceptions include impulse purchases or commodity items). The funnel tightens significantly here—you're now competing with just a few other sellers for a ready-to-buy customer.

Impact on your ecommerce store

High-intent traffic converts: According to VWO's analysis of funnel conversion rates, most sales funnels convert between 3% and 10% overall, with B2C e-commerce funnels often reaching 15% for visitors who make it to the bottom of the funnel.

But cart abandonment is real: According to Baymard Institute research, the average cart abandonment rate is a little over 70%. Common culprits include:

• Slow page load speeds
• Unexpected shipping costs
• Complicated checkout processes
• Lack of trust signals

What works: For the K400, detailed product pages with 360° product views, user-generated photos, and video demonstrations reduce returns and increase confidence. Every positive review feeds back into the awareness stage as social proof.

Stage 4: Purchase/Action

What happens here: The customer completes their transaction.

Real-world example: the Logitech K400

The customer:

1. Adds the keyboard to their cart
2. Reviews their order
3. Enters shipping and payment information
4. Applies any promo codes
5. Completes the purchase

Why this stage matters

This is the moment all your funnel optimization leads to: revenue. But it's also where many sales are lost to checkout friction.

The purchase stage is the direct result of successful bottom of funnel nurturing. All the trust you've built, all the information you've provided, and all the objections you've handled come together here.

Connection to the full funnel

Purchase isn't really the "end" of the funnel—it's the gateway to retention. How you handle this transaction affects whether the customer comes back. A smooth checkout creates positive associations; a frustrating one damages your brand even if the sale completes.

Impact on your ecommerce store

According to Baymard Institute's checkout usability research, better checkout design can significantly improve conversions. Their testing reveals key optimizations that reduce friction:

• Offering guest checkout options
• Minimizing form fields
• Providing multiple payment methods
• Ensuring mobile-friendly design
• Displaying transparent pricing upfront

Post-purchase matters too: Confirmation emails, order tracking, and proactive communication set the stage for retention.

Stage 5: Retention/Loyalty (Post-Purchase)

What happens here: After the purchase, you focus on keeping customers engaged and encouraging repeat business.

Real-world example: the Logitech K400

Post-purchase, the customer:

• Receives their keyboard and sets it up
• (Hopefully) has a great experience using it
• Might leave a product review
• Could sign up for your newsletter
• May purchase related accessories (batteries, carrying case)
• Might recommend your store to friends

Why this stage is critical

Here's a stat that should grab your attention: Research from Bain & Company and Harvard Business School shows that acquiring a new customer costs 5-25 times more than retaining an existing one. Even a 5% increase in customer retention can boost profits by 25-95%.

Why retention is cheaper:

• You've already earned trust
• Existing customers know your brand
• No need for expensive acquisition advertising
• Loyal customers provide referrals (free marketing)

The connection to other stages

Retention loops back to awareness for new purchase cycles. Satisfied customers become your best marketers through:

• Word-of-mouth recommendations
• Social media shares
• Online reviews (which influence future buyers at the awareness/interest stages)

Impact on your ecommerce store

Customer lifetime value (CLV) is where retention pays off. For a Logitech K400 purchase, you might:

• Send follow-up emails with setup tips
• Offer complementary products (HDMI cables, TV mounts)
• Request product reviews (with incentives)
• Provide exclusive discounts for repeat purchases

The numbers: Studies show existing customers spend 67% more on average than new customers.

The funnel in action: key takeaways

Understanding the ecommerce conversion funnel isn't just academic, it's practical. Here's what this means for your online store:

1. Measure each stage separately

Track metrics specific to each funnel stage:

• Awareness: Traffic, impressions, social reach
• Interest: Time on site, pages per session, content downloads
• Intent: Product page views, add-to-cart rate
• Purchase: Conversion rate, average order value
• Retention: Repeat purchase rate, customer lifetime value

2. Optimize for the stage, not just the sale

A blog visitor (awareness stage) needs different content than someone on your product page (intent stage). Tailor your messaging accordingly.

3. Don't neglect the top or bottom

Many stores focus only on converting ready-to-buy customers (bottom of funnel) while ignoring awareness efforts. This eventually starves your pipeline. Similarly, driving massive top-of-funnel traffic without optimizing for conversion wastes money.

4. Retention is your secret weapon

Given that customer acquisition costs continue to rise, building a loyal customer base is more valuable than ever. A customer who buys a product and has a great experience is worth far more than a one-time sale.

5. Personalization matters at every stage

Modern consumers expect relevant experiences. Use data to:

• Show relevant content at awareness stage
• Recommend products at consideration stage
• Personalize checkout at purchase stage
• Tailor retention emails based on purchase history

Your funnel is your growth engine

The ecommerce sales funnel isn't a one-time build—it's an ongoing optimization process. Each stage influences the next, and drop-offs at any point highlight opportunities for improvement.

By understanding what customers need at each stage (from that first Google search to their fifth purchase), you can create experiences that guide them naturally toward conversion and loyalty.

The Logitech K400 example shows this in action: from initial problem recognition ("I need a better way to control my TV") to post-purchase satisfaction ("This keyboard is perfect—I should leave a review"), each stage builds on the last.

Your next steps:

1. Audit your current funnel: where are customers dropping off?
2. Create content for each stage (not just bottom-of-funnel sales pages)
3. Test and optimize continuously
4. Build retention into your strategy from day one

Remember: the goal isn't just to move customers through the funnel faster—it's to provide value at each stage so they want to keep moving forward.