You know what’s frustrating? Knowing you have the best products on Amazon, yet the sales aren’t just coming in. Now you find yourself in a position where you’re starting to doubt your product and ask yourself whether you made a mistake.
But don’t give up just yet! It’s important to examine and study your Amazon conversion rate first to determine what the problem really is. Because it may not even be your product.
Amazon is the leading e-commerce retailer and because of this, studying conversion rate can be rewarding and profitable for your business.
In this article, we’ll be diving deep into the Amazon conversion rate and finding ways on how we can improve yours. We’ll learn how to tweak our listings to drive sales and allow our products to stand against the competition.
Table of Contents
2. What Is Amazon Conversion Rate?
3. Why Is the Amazon Conversion Rate Important for Amazon Sellers?
4. What Is the Conversion Rate for an E-Commerce Store?
5. What Is the Average Amazon Conversion Rate?
6. How to Find and Understand Your Amazon Conversion Rate
7. How to Calculate Your Amazon Conversion Rate
8. How To Track Your Conversion Rates On Amazon?
9. Are There External Tools I Can Use to Find My Amazon Conversion Rate?
10. Amazon Conversion Rate: 18 Ways to Improve It!
11. What Will Be the Impact of Amazon Conversion Rate Optimization?
12. What is the Desired Outcome?
13. Final Thoughts
What Is Amazon Conversion Rate?
But first, what is the Amazon conversion rate?
In any business, the conversion rate is considered an important metric. Having a high conversion rate means you will have a higher percentage of sales.
Simply put, the Amazon conversion rate is the ratio of sales to page views for your product listing on Amazon.
Why Is the Amazon Conversion Rate Important for Amazon Sellers?
On an e-commerce platform like Amazon, conversion rate is important to an Amazon seller because it impacts your business’ profit, your organic search rankings, and your overall sales. Here are some insights:
• A higher conversion rate will result in more sales, because a larger percentage of those who click on your product page actually end up buying your product.Therefore, more sales and more profit for you.
• You’ll also have a higher organic ranking factor with a higher conversion rate. This means when buyers search for the product category on Amazon, your product ranks higher in the results pages.
• A higher conversion rate will also influence your traffic. If there is high traffic towards your product, this customer traffic signals the Amazon algorithm that your product is relevant for the specific keyword. Over time, this will boost the visibility of your product on search engine results pages.
When you have a higher conversion rate, this shows Amazon that you have a popular product because you convert a high percentage of your shoppers into paying customers. Amazon search algorithms reward you by giving your product higher organic rankings, which leads to more traffic and eventually to more sales.
What Is the Average Conversion Rate for an E-Commerce Business?
What you should know is that Amazon’s conversion rates are significantly higher than the average e-commerce site.
The average conversion rates for top retailers on other e-commerce platforms are between 1 and 2% only. Meanwhile, Amazon sellers have average conversion rates of 13%, while Prime members have conversion rates of 74%.
What Is the Average Amazon Conversion Rate?
A good conversion rate differs for every type of product, but a good average Amazon conversion rate ranges between 10% and 15%.
It is a good habit to track your own conversion rates as often as you can to help you establish a benchmark for your business’s ideal conversion rate.
How to Find and Understand Your Amazon Conversion Rate
Now we arrive at this question: how do you find your Amazon conversion rate? You can follow these simple steps to get yours, which we’ll also discuss in detail in the following section.
1. Open your Amazon menu, go to Reports, and next, go to Business Reports.
2. Under Business Reports, you will see the Amazon Standard Identification Number (ASIN) category. Click on the “Detail Page Sales and Traffic By Parent Item.” You will then be given sales information on each product.
3. Navigate to the “Total Order Items” field for your product, then divide the total order items by your number of Sessions. Don’t forget to include those who left and returned.
On its own, conversion rates are useful. However, it’s crucial that you understand it within the factors that influence it. Here are some factors and useful insights you can use to further understand your conversion rates.
SAMPLE SIZE AND TIME FRAME
Sample sizes and wide time frames increase the conversion rate’s accuracy. The more data you have, the more reliable your results will be. You can make more insight and be more confident to make decisions based on the insight you got.
Strong and numerous competition lower the conversion rate, since customers have more quality products to choose from. If the product you’re selling is highly-competitive, you can expect to get lower conversion rates because customers have more options.
Higher conversion rates come from ad clicks compared to organic search results. Always look into whether the conversion rate is from organic Amazon search results, sponsored product ads, newsletters or e-mail blasts, or combinations.
No matter how good your conversion rate is, it still doesn’t matter if you’re not making money. Always check your conversion rates if they are actually putting in more revenue to cover your expenses.
How to Calculate Your Amazon Conversion Rate
As mentioned in the previous section, you can calculate your Amazon conversion rate by finding the “Total Order Items” field for your product of interest, then divide that number by your Sessions (including those who left and returned).
Here’s a simple formula you can use:
How To Track Your Conversion Rates On Amazon?
STEP 1: NAVIGATE TO REPORTS AND CLICK BUSINESS REPORTS
You will have access to a ton of information on the traffic and sales of your products on Amazon in your business report.
STEP 2: CHECK THE SALES AND TRAFFIC
This report is a data range report, which means you can select the period you’d like to measure. By default, the report gives you data for the past 30 days.
STEP 3: LOOK FOR THE ROW NAMED ORDER ITEM SESSION PERCENTAGE
This is your conversion rate, since this number represents total units purchased compared to the number of shoppers who viewed the products.
STEP 4: THIS OPTION GROUPS ALL THE ITEMS TOGETHER
This method of getting your conversion rate groups all your products together. If you want to view the Amazon conversion rate per product, you can proceed to the next step.
STEP 5: IN ORDER TO OBTAIN IT BY PRODUCTS, LOOK FOR “BY ASIN” REPORTS
Find the Amazon Standard Identification Number (ASIN) category, then click on “Detail Page Sales and Traffic By Parent Item.” You will then be given sales information on each product, which include the “Total Order Items” field for your product of interest and the Sessions (including those who left and returned).
In order to get the conversion rate, you just have to divide the Total Orders by the Sessions.
Are There External Tools I Can Use to Find My Amazon Conversion Rate?
The answer is yes, but it’s also important to know how they work! Generally, they look into the item’s sales rank and the product category.
Want to find some great tools to calculate your Amazon conversion tool?
We’ve found the best tools you can use below..
USING THE SELLER CENTRAL TO FIND YOUR AMAZON CONVERSION RATE
Are you selling your product on Amazon Seller Central? Don’t worry because getting to your conversion rate is very quick and easy—and without any cost.
First, start by logging on to your Seller Central account. If you go to the top menu bar, you will find Reports. From there, navigate to Business Reports, then click on Detailed Page Sales and Traffic Reports by Child Item.
Understanding Your Detailed Page Sales and Traffic Report
This date range report includes information on traffic, Buy Box Percentage, and more wherein you can select the time period you want to be measured. By default, the report gives you data from the past 30 days.
This is the visit to your Amazon pages by a shopper. All activity within 24 hours by one user is considered one session. Even if your product is out of stock, you will still see the Sessions.
Page Views is the number of views this product has had during the time period you set for your report.
Buy Box Percentage
Your buy box percentage is the percentage of page views during which the Buy Box or Add to Cart link appeared on the page, so your customers can add the product to their own cart.
However, for sponsored ads, your Buy Box must first be in the ads for your ads to be served. You can still have a 0% Buy Box percentage even if you’re the only seller offering the product if your Buy Box isn’t available because of pricing issues.
Unit Session Percentage
This is your conversion rate for that particular product. It indicates the number of units purchased in relation to the number of people who viewed the products.
FINDING YOUR CONVERSION RATE ON VENDOR CENTRAL
Selling to Amazon using Vendor Central? The not-so-happy news? Getting your conversion rate is a bit difficult and expensive.
When it’s time to create your reports, you have two choices with Amazon Vendor Central:
Amazon Retail Analytics (ARA) Basic
With the Amazon Retail Analytics tool, you can access plenty of information on Sales Diagnostics, Inventory Health, Product Catalog, and Forecasting Tools.
For US$30,000 a year, you can get everything included in the ARA Basic—plus additional reporting tools that are quite expensive.
The sad part is that the only report that will show your actual conversion rate for your items is available on the ARA Premium, which you can find in the Page Views and Conversion report.
FINDING YOUR CONVERSION RATE ON OTHER AMAZON PLATFORMS
If you’re selling books on the Amazon Kindle Direct Publishing (KDP) platform, which hosts Kindle and CreateSpace books on Amazon or Merch by Amazon, you won’t have access to the same page view and conversion data that are typically available on both Seller Central and Vendor Central.
However, you have other ways to check. You may check book sales, obviously, and your Amazon bestseller status or rank within Amazon overall and within each genre or category that your book shows up in. This ranking is a good way to see changes in sales or page reads.
But remember this: the higher your sales rank is, the less frequently your rank will get updated. If your sales rank is 350,000, your rank will be updated once or twice per day. But if you’re at 15,000, it gets updated every hour.
This means that the lower your ASR, the more frequently there is movement.
If you have a physical book, on the other hand, that’s listed on the KDP marketplace, you can choose to open a Seller Central account so that you can add the book to your inventory. You will now be able to access the reports available for those selling via Seller Central and manually calculate your conversion rate.
Unfortunately, for those who are selling on Merch by Amazon, you currently have no method to access data and calculate your conversion rate.
Amazon Conversion Rate: 18 Ways to Improve It!
Times are changing.
In the past, when a person walked into your physical store and asked questions about your products, you can expect conversion most of the time.
However, when it comes to online shopping, things are totally different! Conversion rate is lower, even if customers have viewed and read about your products.
Keep in mind that this doesn’t always need to be your reality. Here are 18 ways you can improve your Amazon conversion rates.
1. PERFORM KEYWORD RESEARCH
You should know by now how crucial keywords are in your operations when improving your Amazon conversion rate. But in order to use the right keywords, you have to do your keyword research first.
There are plenty of Amazon keyword tools available, which can also help you track your keywords. You can enter keywords related to your product and view their search volume.
There are also great tools that don’t only show you high-ranking keywords, but also short keywords and long-tail keywords related to your product.
2. CREATE COMPELLING PRODUCT DESCRIPTIONS
Once you get your products’ important keywords, make sure to write engaging and compelling product descriptions that use them.
Highlight the product’s benefits and features with user-focused content to demonstrate how unique your product is.
3. BENEFIT-ORIENTED BULLET POINTS
The readability of your product description also affects your conversion rate. Make it easier for customers to read about your product by adding benefit-oriented bullet points.
Instead of filling up the required number of bullet points, focus on quality instead. Avoid stuffing them with keywords, focus on the product benefits, then focus on its features.
4. USE HIGH-QUALITY IMAGES
Better search rankings result in better Amazon conversion rates. This is why it’s important to optimize your product’s images for the Amazon platform.
Make your product shine by taking the product photo against a white background, with the product occupying 85% of the image.
Make sure to also include another image where customers can see themselves by having a hand-model or models pose centered on the product, so they can see how it fits their needs and lifestyles.
5. KEEP YOUR PRICE STABLE
On Amazon, it is highly recommended to keep your prices stable—with a few exceptions, which can also lead to better search rankings. These exceptions include new launches, cross-selling, holiday sales (like Black Friday or Cyber Monday), and stock clearance.
6. JOIN “FULFILLMENT BY AMAZON” (FBA) FOR FASTER SHIPPING
One factor that affects whether customers buy your product or not is the shipping. Is it discounted? Is it free?
In order to capture a larger percentage of Amazon shoppers, sign up for FBA or Fulfillment by Amazon. This allows Amazon to hold your products at their distribution centers so they can quickly ship them once a purchase has been made.
However, there are additional costs to this and you may have to check this with Amazon to get a clearer breakdown.
7. DON’T RUN OUT OF STOCK
In Amazon, once a product goes out of stock, the rankings for the most important keywords where the product appears also go down.
This means that your Amazon conversion rate goes lower, which affects the rest of your metrics. That’s why you always have to make sure that you have enough stocks in your inventory when selling.
8. ANTI-ABUSE SETTINGS
Adhere to Amazon’s Selling Policies and Seller Code of Conduct. Any violation of this code will surely affect your search rankings and eventually, your conversion rate.
9. OPTIMIZE LISTINGS USING SEO
This is just related to our first way to improve your Amazon conversion rate. By using your keywords, you can now optimize your listings and manage the product descriptions and reviews even after your product has gone live.
10. CONSIDER UNIT SESSION PERCENTAGE IN AMAZON ADVERTISING
Understanding your conversion rate and investigating where the sessions and page views came from will help you make the informed decisions, like whether you need to pay for ads, make more promotions outside the platform, or tweak your descriptions.
11. USING AMAZON LANDING PAGES
One surefire way to boost traffic to your product’s page is by using your Amazon pages as landing pages when promoting your product externally, like on Facebook, Twitter, Instagram, Google…wherever!
12. USING PROMOTIONS
Another way to boost conversion rates is through paid or sponsored ads and promotions of your products.
Discounts will make it more likely for people to buy because they feel like they are getting a good deal – and they are!
When you offer a discount, your shoppers are also more likely to buy from you instead of moving on to another listing.
Take the opportunity to use discounts to build your email list, too! You can collect email addresses by offering coupons.
13. CREATIVE MARKETING
Be creative. There are a lot of ways you can promote your products on Amazon with creative marketing strategies that can easily capture the eye of buyers and make them realize that their lifestyles are in need of the product you’re selling.
14. EMAIL MARKETING
Have you been using the discounts we mentioned above to grow your email list?
Now make use of your database! Use email marketing to promote your products and drive traffic towards them. Just don’t forget to use your Amazon pages as your landing pages for the links in your email blasts.
15. TRACK WHEN YOU EARN AMAZON BADGES
Have you ever browsed Amazon products and found products that have an “Amazon’s Choice” or “Best Seller” badge? If you’ve been using Amazon at all, it’s nearly impossible not to notice them.
Keep an eye for when you’ve earned these badges.
But while you’re still waiting for yours, you can increase your chances of getting it by following these tips:
• Use high-quality images
• Optimize your product titles and listings
• Make sure your price is in the sweet spot
• Manage your reviews as they come in, whether they’re good or bad
16. USE SCARCITY
Drive the need for your product and traffic towards your product page using scarcity. In case you haven’t noticed, products that are running out of stock always let shoppers know this, even without having to click on the listing.
Use this to create a need in buyers whenever you’re promoting your products. If they feel like they need your product soon, they’ll order sooner rather than later to make sure it doesn’t run out!
17. CULTIVATE AND REPLY TO REVIEWS
Are you currently struggling to get reviews? Consider sending custom follow-up emails to buyers after people purchase from your Amazon store to remind them to leave a good word or meaningful feedback.
And once you do get reviews, make sure you respond to them—whether they’re good ones or bad ones. This will show your buyers that you value their opinion and their feedback.
18. USE FAQS
As we mentioned in the earlier ways to improve your Amazon conversion rate, our descriptions should always be customer-centered.
One easy way to make it easier for buyers to know your product is by including frequently asked questions in the description.
When making your FAQs, still make sure that they are sprinkled with related keywords to help you rank more easily.
What Will Be the Impact of Amazon Conversion Rate Optimization?
Knowing all of these, we can conclude that Amazon takes its users’ or buyers’ experiences seriously. This is why they give a high premium on making the most of its listing features to reinforce branding and product positioning.
If you make the most out of these features, your Amazon conversion rate will grow in time. It will take frequent research and evaluation and sometimes, even tweaking to improve your Amazon conversion rate and convert this number to sales and profit.
What is the Desired Outcome?
The desired outcome for optimizing your Amazon conversion rate is, of course, to make more sales. But in order to do so, you will have to take time to understand how Amazon as an ecommerce and search engine platform works.
Take time to understand the metrics and make the most out of its features to present buyers with choices, comparisons, benefits, and specifications to help them decide easily to make that purchase on your store.
While it will take time to learn and to improve your Amazon conversion rate, it is both worth the effort and the time.
This will give you a stronger grasp of your products and your brand (or your store), which will make optimizing your products better. In the long run, this will make your store profitable for you.