Amazon conversion rates refer to the percentage of visitors to an Amazon product listing who actually make a purchase. It is a measure of the effectiveness of an Amazon product page in converting visitors into buyers.
For instance, your conversion rate would be 10% if 10 out of 100 customers bought your goods after visiting your Amazon product listing.
A high conversion rate means your product page is effectively convincing visitors to buy, while a low conversion rate indicates a need to improve your product page in order to drive sales. The metric is an important indicator of the overall success of Amazon’s eCommerce platform and helps brands identify the areas for improvement to increase sales and revenue.
But in today’s cut-throat competition, maintaining a higher conversion rate and keeping up with effective Amazon Marketplace Management is no less than a challenge. Concerning this, here’s a brief guide discussing everything you need to learn about increasing your Amazon conversion rates. It’ll also guide you in calculating and monitoring your Amazon conversion rates and provide insights into factors that can impact the same.
How To Calculate Amazon Conversion Rates?
Amazon conversion rates are an essential indicator for Amazon sellers, helping them rank higher for potential search terms on the marketplace. According to Amazon’s Algorithm- A9, your company’s success depends on your conversion rate and pipeline velocity.
When visitors to your Amazon product pages start becoming paying customers, it tells the algorithm that the item(s) you offer is relevant to the search terms visitors are using.
For prospective search terms, your listing leads to sales, which increases the visibility of your offering.
You can determine Amazon’s conversion rate using this equation-
CR = The total order number ፥ The total no. of product listing sessions (visits)
Additionally, you can view your Amazon conversion rates by looking at the Unit Session Percentage indicator. This option shows “How many products were bought for the number of potential customers who saw the goods.”
What Is A Good Conversion Rate?
Now you know how to calculate your Amazon conversion rate, but how do you evaluate if you have a good conversion rate or a bad one? One of the best ways is to compare it with Amazon’s own conversion rate, which is considered to be the best among all eCommerce marketplaces (that’s what makes Amazon the number one choice of sellers).
For non-prime users, a good conversion rate is around 10-15%. However, for the top 500 merchants, this number drops to 3.32% because of the higher frequency of product views. The numbers stand highest for Amazon Prime customers, with a conversion rate of 74%.
What’s important to note here is that a good conversion rate may vary for every product and niche. For instance, expensive products usually have lower conversion rates. This is because the customer often tends to go around checking and comparing other similar items before making a purchase.
More so, your sample size also contributes to what is considered a good conversion rate. For example, a 50% conversion rate with only ten sales out of 20 page views is no good in terms of revenue, while a 20% conversion rate with 20 sales out of 100 page views may seem like a low conversion rate, but in reality, it’s double the previous sales, generating higher revenue.
How Can You Monitor Your Amazon Conversion Rate?
There are simply a few steps involved in monitoring Amazon conversion rates:
- Step #1: First, go to Reports and select Business Reports.
- Step #2: Verify the traffic and sales.
- Step #3: Search for the Order Item Session Percentage row. Your conversion rate can be found right here.
- Step #4: This selection combines every item.
- Step #5: Look for “by ASIN” reports accessing its by-products.
Essential Elements That Influence Amazon Conversion Rates
Amazon’s conversion rates can be impacted by various factors, some of which are listed below:
#1 Product Offering
Your product offering has a significant impact on your conversion rates on Amazon. Therefore, it’s crucial to offer various products in high demand that appeal to multiple customer types. It’s doubtful that your conversion rates will grow if you sell things no one wants.
#2 Product Cost
The prices of the items in your store have an impact on Amazon conversion rates as well. Customers are far more likely to buy when they believe they are receiving a good bargain. To entice clients to make a purchase, ensure that you set a competitive price for your product and provide discounts and special offers.
#3 Customer Experience
A satisfying shopping experience for your customers is necessary for high Amazon conversion rates. So make sure you have decent product pages, accurate product information, and a simple checkout process that loads quickly.
#4 Sponsored Ads
You may draw customers to your store by running sponsored advertisements on Amazon. To ensure your campaigns are successful, you must track the campaign performance and ensure your advertising is targeted to the right customers.
9 Tips To Increase Amazon Conversion Rates
Being an Amazon seller, you must be well aware of how competitive the online marketplace can be. With millions of products available at the click of a button, it’s important to have a strategy in place to stand out from the crowd and drive sales.
Here are some useful tips that can boost your Amazon conversion rates and help maximize your profits.
Tip #1: Carry Out a Keyword Research
One of the effective ways to improve your conversion rate is through extensive keyword research. Herein, you can search for keywords that users usually type in to find products similar to yours and try including these keywords in your product title/descriptions. This will help your products rank for relevant search terms on the Amazon SERPs and get more people to click on your product listing, which can ultimately lead to an improved conversion rate.
Tip #2: Write Enticing Product Descriptions
Most Amazon sellers often tend to ignore product descriptions in the course of listing optimization. However, remember that any prospective buyer is likely to read through this section before making a purchase decision.
Accordingly, note the following as the characteristics of your product description:
- Appealing enough to generate a sale
- Easy to read and comprehend
- Information that is thorough and helpful regarding the product
Tip #3: Add Result-Focused Bullet Points
Buyers can recognize important product features more efficiently with bullet points, which makes reading easier. However, make sure to include only a few bullets. As per the experts, five is a good starting point for a bullet list.
Tip #4: Set the Right Prices for Your Products
Pricing your products competitively is the best method to optimize your product listing. However, just remember that higher prices can make customers look for alternatives, while lower prices can make them question the quality of your products. Therefore, it’s important to find the sweet spot where the prices are competitive yet still provide a reasonable profit margin. Concerning this, you can also use A/B testing to determine the right prices for your products.
Additionally, using Amazon’s price optimization tools and monitoring market trends can help you adjust prices and remain competitive.
Tip #5: Use Best-in-Class Product Images
Customers check for product images first when they arrive at your product listing. If your pictures aren’t appealing enough, they won’t engage in additional factors (description, bullets, reviews, FAQs, etc.). Therefore, ensure that the product photos you use are of high quality with a white backdrop.
Note that even if your product is exceptional, poor visuals can affect the overall success of your marketing efforts.
Tip #6: Offer Great Discounts and Rewards
Offering discounts to customers is a terrific approach to entice them to buy your goods. Reward programs encourage customers to continue shopping on Amazon by offering points, cashback, or other incentives for making a purchase. This can be especially effective for customers who are price-sensitive or who are loyal to the brand. By using these tactics, you can attract new customers and retain the existing ones, ultimately leading to an increased conversion rate.
Tip #7: Send Follow-Up Emails
From the moment a customer buys your product- foster that connection. They are the best resources for marketing your goods since they are the ones who have purchased and used them. Hence, they can open doors for promotion.
However, avoid sending them a ton of emails. Instead, send them a short email after they buy your goods to see whether they are satisfied with your product and services. Here, you can also add a discount code for the next purchase, making room for repeat customers. Moreover, consider including a link to your email so people can send you reviews or feedback about their experiences.
Tip #8: Maximize Your Number of Reviews
Reviews are equally important for both consumers and sellers. Consumers use them in a way to gain useful insights into a product’s quality, while Amazon uses them to rank and recommend the top products and sellers.
Hence, as an online business, getting more reviews from your customers and investing in review management can be a good take for increasing your Amazon conversion rates. You can also use Amazon-approved review generation services like Amazon Vine and Early Reviewer Program to fetch more product reviews. Meanwhile, also make sure to respond to reviews (even the negative ones) as it will help improve your brand image. This approach can help businesses improve their bottom line by building brand awareness and loyalty. As a result, a loyal consumer may suggest your product to others while others may choose to purchase it.
Tip #9: Take Part in Fulfillment by Amazon (FBA)
Amazon features over 100 million prime members. When making an online purchase at Amazon, customers often look for prime sellers to make the most of their Amazon prime benefits, including discounts and free & fast shipping. But how to make your products Prime-eligible? You can do this by joining Fulfillment by Amazon. This will help you target and attract a big share of customers (Amazon Prime members), as your products with the prime badge will be perceived as more reliable and secure for purchase. And this, in turn, will help you convert visitors into paying customers.
In short, Amazon marketplace management requires a strategic approach and a deep understanding of your target audience. By implementing the strategies outlined in this blog, you can boost your Amazon conversion rates and drive better sales. While at it, remember it’s crucial to constantly monitor and adjust your strategies based on the changing market trends and customer behaviors.
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