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What is the conversion rate on Amazon?
Amazon's conversion rate can mean different things in different scenarios. Before you know how to increase your conversion, you need to know how to calculate the conversion rate. It is the total number of orders divided by the total number of sessions.
Here’s the formula:
Conversion rate = Total number of orders/ Total number of product listing sessions
On the other hand, the conversion rate for Amazon ads is the percentage of the clicks on your Amazon ads that will convert into sales.
Your conversion rate shows how many customers are actually buying your product after viewing your product listing.
The conversion rate is a necessary step in your business because it:
- Helps you assess the effectiveness of your marketing efforts
- Assists in A/B testing listings and find ways to improve
- Finds if you can further improve the ranking of your product
So, if you want to determine what’s causing your conversion rate to be high or low, you first need to understand how your conversion rate works.
How to find conversion rate on Amazon
The average conversion rate can range from 10 to 20 percent on Amazon. However, it depends on the categories and the type of products you sell. Even if your business has below average, average, or above average, you should try and find ways to improve your conversion rate.
You can learn the conversion rate by looking at your Amazon seller central business reports.
Go to Amazon Seller Central > Reports > Business Reports.
If you know your current conversion rate, then you can use it as a criterion for measuring the impact of your optimization efforts.
Ways to increase Amazon conversion rates
If your brand conversion rate is declining, then it’s probably your listing, your ad campaign, or both that need some optimization efforts.
Let’s look at the factors you should consider to increase your conversion rates:
1. Optimize product pagesIf you want to get a higher session unit percentage then you need to optimize your listing. So, one such critical element is how your product listing brings a good impression on customers. On your product listing page, the title of your product, along with its images, description, and USP (Unique Selling Point) must appear at the top level.
For instance, if your business is introducing a new product, use a simple title with the brand and product name, including its benefits.
- Focus on the keywords of your product in the title, which are the popular customer search terms.
- The images you use in your product listing page should be of high quality. Through these images, you need to highlight how the product will be used in reality. To make it more unique, use the images from the customers who have bought the product. So the authenticity of the product will be highlighted.
- List the product's features in bullet points and don’t exceed the information. Through your bullet points, you should answer all the FAQs. Focus mainly on the features and characteristics of the product. The primary goal of the bullet points is to get your customers’ attention to the detailed product description so that you can be assured that the customers will make the purchase.
2. Reduce delivery time
In a recent survey, it is observed that 58 percent of consumers in the United States are more likely to increase their total orders on Amazon with Prime same-day delivery. Free and fast delivery is one of the reasons why people shop on Amazon rather than from other marketplaces or DTC websites. If a customer comes to your product listing page and doesn’t find prime shipping, then there is a chance that your customer can leave and find a seller who has prime shipping.
So if you want to capture a large number of customers on Amazon, consider joining Fulfillment by Amazon. The FBA stores your product in Amazon’s fulfillment centers and handles the picking, packing, and shipping of the product. Also, they provide customer service for these products. Amazon FBA can help you with scaling your business and reaching more customers.
FBA is one of the easiest and simple ways to increase your conversion rate.
3. Conduct keyword research
If your brand needs to have a higher conversion rate, then the best way is to perform thorough keyword research. If your product ranks for related keywords or search terms on Amazon SERP (Search Engine Result Pages), then your product will acquire three things - Good visibility, great traffic, and high sales.
These relevant keywords should be combined in your title, bullet points, and product descriptions.
Targeting similar keywords in PPC campaigns can boost your relevance and sales, thereby increasing your conversion rates on Amazon.
If you want to know which keywords are relevant to your product, here are some tips for conducting successful keyword research
- Understand the search intent of buyers
Understanding the search intent of buyers is an important part of successful keyword research on Amazon. Before selecting any keywords, it is important to consider the kind of terms buyers are likely to look for when searching for products in your niche. This can help you identify what words and phrases are most likely to be used when searching for something you offer.
- Amazon’s auto-complete feature
Amazon's auto-complete feature is a useful tool for conducting keyword research. By typing a keyword or phrase into the Amazon search bar, the auto-complete feature will suggest related keywords and phrases that people commonly search for. This can give you insight into the keywords and phrases that people are using when looking for products or services related to your business.
For example, if a customer starts typing in "Nike Shoes," Amazon's auto-complete feature will suggest popular searches related to Nike Shoes, such as "Nike shoes for men," "Nike shoes for women," and "Nike shoe kids." This helps the customer quickly find the exact item they are looking for. By taking advantage of this helpful feature, you can ensure that your keyword research is comprehensive and effective.
- Analyze your competitor’s listing
Analyzing your competitor’s listings can help you gain insights into which keywords they are using to get buyers to their products. It can also help you identify any keywords you may be missing and help you create more effective keyword lists for your own listings.
4. Use A+ content
A+ content helps you enhance your business with top-notch content. Previously known as Enhanced Brand Content (EBC), A+ content lets brands display additional content with images. You can draw the customers' attention with A+ content from other competitors in the same niche. A+ content brings uniqueness to your listing page so you can boost your Amazon conversion rate. However, the A+ content is applicable only to sellers who have completed the Amazon Brand Registry process, but once you get it, there are many things you can do with it.
Addition read: Benefits of A+ content
5. Price competitively
Pricing products competitively is a crucial factor for any business. While it may seem like lowering your price will automatically increase your conversion rate, this isn't always the case. It's important to consider all the factors that go into pricing a product, including marketing costs, overhead expenses, and other fees.
Finding the right balance between pricing competitively and securing good profit margins can be challenging, but it's essential to appeal to your target customers and stand out against your competitors. A well-thought-out pricing strategy can help your products win the Buy Box, which is the default option for customers to purchase on Amazon, and increase your conversions and sales.
To assess if your price is competitive, consider the prices of similar products from your competitors. Look at the price range for your product category and try to position your product towards the lower end of the range if possible, while still maintaining healthy profit margins. Keep in mind that the Buy Box is highly coveted and can significantly impact your sales, so strive to have a competitive price in order to win it.
In summary, pricing your products competitively is crucial for driving sales and standing out against your competitors. By considering all the factors that go into pricing and implementing a sound strategy, you can increase your chances of success on Amazon and other e-commerce platforms.
6. Strategize reviews and rating
Reviews and ratings play an important role in the success of your conversion rate. It is because the majority of the customers buy the products only after examining the reviews. Typically, customers don’t buy products with low ratings and negative reviews because reviews serve as social proof for them. So try to get more reviews from your customers.
Also, once you get the review, thank them for the positive ones and address the negative issues if any. Consequently, by strategizing your reviews and ratings, you can increase your conversion rate.
Ad campaigns can be an area where your conversion hurts. Amazon has three categories of advertising - Sponsored Product ads, Sponsored Brand ads, and Sponsored Display ads. These ads will be shown up on the search page as well as on the product listing pages. To increase your conversion rates you can take advantage of these ads.
The Sponsored product ads will help your brand to increase sales and clicks from customers because they will appear on the search term. Especially when the customers are already looking for a specific product but haven’t purchased it yet. When these ads show up on relevant searches, it can increase conversion rates because these ads reach people who are already intent on purchasing that product.
Sponsored brand ads work similarly, but there is a slight difference. This is because the customers will be interested in a certain brand but won’t be searching for a specific product in that brand's catalog. So, you can see these ads appearing next to the relevant searches, which will have different keywords than the ones used in your ASINs. In this manner, it will help you to increase the visibility of your product without putting much effort into keyword targeting.
If you want to know the conversion rate of your products and keywords at the most granular level you can use SellerApp’s e-commerce analytics platform. In the dashboard, you find curated insights into your products in the advertising section. Under the negative search terms, you can find the conversion rate of the product.
8. Use A/B split test
A/B testing means you compare two events that are exactly the same but have some differences in the content. You can experiment with your listing content, description, bullet points, and images. You can also use the two images for this testing to know which image performs better. That image you can use in your listing page, thus you can increase your conversion rate.
Ensure that the test audience falls in the same category as your customers.
Having a high conversion rate on Amazon is a way to increase your profits. A low conversion rate will only have low sales and wasted spending. So by implementing these strategies and continually monitoring and adjusting, brands can effectively increase their conversion rate on Amazon.