1. What is Amazon Conversion Rate?
Your Amazon Conversion rate determines how your sales occur for each view on the listing.
According to the seller metrics that you can get from your Seller Central Business Reports, the formula is:
[Conversion rate = Total Number Of Orders / Total Page Views]
When you know your current Amazon conversion rate, you can use it as a benchmark for measuring the impact of your optimization efforts. Considering that Amazon’s organic ranking so heavily favors listings that have the highest conversion, understanding the Amazon conversion rate of your listing is vital.
Keep reading to learn how you can monitor and boost your conversion rates on Amazon.
2. What is an ideal Amazon Conversion Rate?
A reasonable Amazon conversion rate on Amazon is seen to be around 10-15%.
However, it also depends on the total sales made.
The Amazon conversion rate is labeled as good or bad, considering the sales made with the pageviews.
For instance, for five conversions coming from 10 page views, it is a 50% conversion rate. But the revenue generated is meager.
If you compare these stats with 100 conversions for say, a 1000 page views, the Amazon conversion rate is significantly less, but the revenue generated is the bomb.
Your Margins, along with your price point, also play an essential role. Here’s another example. If your product is expensive or has exceptionally high margins, having low conversion rates, in that case, is very much affordable. If you compare it with items that are cheaper and do not make as much profit, you can only move the needle if they make more conversions; hence a 10-15% Amazon conversion rate might not even cut it.
3. Where to find the Conversion Rates on Amazon Seller Reports?
You can find the conversion rates on your Amazon Dashboards. Follow the steps below to access your Amazon conversion rate numbers:
- Open your Amazon’s Seller Central account. Select reports and click on the Business Reports from the drop-down.
- In Business Reports, scroll down to the “By ASIN” category and select “Detail page” and then, select “Sales and Traffic.” Here, you’ll be able to see the individual sales info on every product you sell.
- The “Unit Session Percentage” on the Detail Page Sales and Traffic Table is your Amazon Conversion Rate.
4. Top Ways to Boost Your Amazon Conversion Rate
- Determine your Amazon conversion rate
Before you start looking into how to increase your Conversion Rate, it is imperative to know where you stand currently. When you know the rolling numbers, it is easy to benchmark and measures your optimization efforts.
- Sign Up for FBA
FBA makes it super easy and fast for a seller to reach higher Amazon conversion rates. If you are enrolled in FBA, then your products become eligible for Amazon
Prime and this, of course, make your product more buyable than other products without the prime badge. Not only does this instill trust among the shoppers for your product, but it also gives the buyers certain advantages, for example, the free one or two-day shipping.
Here is a collection of our top guides for you to know everything about Amazon FBA.
- Use Amazon A+ Content & Highlight Your Brand Store
The enhanced brand content is available to all sellers and vendors having Brand Registry. With a total of 15 modules, it offers you a feature to mix and match different modules to create your template. Here's an example that shows the difference between the product descriptions with A+ listing and one without them.
It is immediately clear which one is going to convert customers more efficiently.
Amazon similarly allows you to showcase your products and brands in the form of a store in a multipage format. The feature will enable you to create your brand stores on the platform, which is like a website in itself with the Amazon ecosystem. It allows you to create your brand stop shop with a self-service store without any additional cost.
- Optimize your Listings
Amazon’s near-infinite product library is an incredible resource for buyers, but it can also make it incredibly difficult for brands to stand out from the crowd. You need to be appealing not only to potential customers but also to Amazon’s Search Rank algorithm, which is two entirely different critics.
Here's a small checklist for you:
1. Title, bullet points, and product description: You must optimize your keywords and make sure you are regularly reviewing and improving your targeting strategy. Make sure you make use of the backend search term space by using good keyword research and lookup tool.
2. Product images: Make sure that you are using a white background for the main image. Use multiple photos to show your product from different angles.
3. Get good reviews: It is imperative to have social proof on Amazon. A bunch of good reviews helps your prospects to trust your brand and product. This allows you to get more conversions supported by having a great product and exemplary customer services, of course.
- Leverage Amazon Product Bundles Program
Amazon offers a virtual tool that saves both FBA sellers and shoppers on Amazon when it comes to time and money, and it's called the Virtual Product Bundles Program. It enables you to create product bundles with numerous ASINs. You can therefore sell two to five bundled complementary ASINs on a single product detail page. Also, FBA sellers can provide Amazon bundles without having to change the FBA inbound inventory nor package them together.
- Keep your pricing competitive.
Amazon considers BuyBox while ranking products in a category. Your pricing strategy plays a significant role in you winning the Amazon BuyBox. Since the price of a product competing with similar products influences the decision of your shoppers and Amazon too, companies must map their pricing well.
- Promote your products
Amazon PPC is undeniably strong. It has a significant impact on increasing any Amazon Seller's conversion rates. It provides you so much more real estate on the platform as the paid ads appear at the top of the search.
Amazon offers "Sponsored Brands," "Sponsored Products," "Product Display Ads" for you to appear at the top of your search results.
The advantage of PPC ads, however, is that your business only pays per click. You don't pay for impressions, or when a shopper sees your ad. This feature can help your team to optimize your ad spend that will subsequently improve your visibility and resultant sales.
- Evaluate your competition
To be successful in markets like Amazon, you must monitor and access your competitors. If you are not carrying out a rolling competitive analysis, then you're losing out on very important insights from your own data.
By gathering competitor's data, it helps you get a clear image of where your business positions in the market.
To sum up:
- It gives you an idea of how you're doing as compared to your competitors.
- Keeps you informed of actions they may be undertaking (discounts, listings changes).
- Monitor and estimate their sales.
- Benchmark your market share against theirs over time.
- Benchmark your organic search performance against theirs over time (and compute Share of Voice).
Here are a few quick steps that can be taken to increase your Amazon conversion rates:
1. Use interrogative tone in your copy: Asking questions always helps you engage more with your audience. You’re getting them to reflect on what you’ve written and thought about the information you’ve had, as opposed to passively presenting the information and hoping they’ll bite — and a deeper engagement can result in a higher Amazon conversion rate.
2. Create enticing promotions: It is very important that your shoppers feel that they have won something. It need not be a great deal, but just something that makes them feel that they have gotten a good deal. For this, you can test different types of promotions and see what works best for you. For instance, it could be "buy one get one free" or "free shipping over X"
3. Make buying easier for your shoppers: Make sure that you create only one task for the buyer per landing page, include CTAs at the bottom of your pages, and follow up well with your buyers. When a prospect asks a question related to the product, answer it as soon as possible taking no longer than a day.
In these challenging times, Amazon and every other online marketplace are evolving continuously. Conventional ways of doing business might be enough to keep your business going, but it is vital to adapt and pivot with the times to crush it!