Which do you prefer: three customers making a purchase or a thousand customers with only two making a purchase?
On Amazon, conversions are essential in achieving and maintaining a high seller ranking. Amazon’s algorithm considers various factors to rank listings, one of which is the conversion rate (CVR). If your CVR is low, your product listings won’t appear on page one of the platform’s search results. This robs you of many profitable opportunities on the platform.
So what’s a good conversion rate on Amazon? What should you do to achieve it and climb to the top of the shopping results? Here’s a quick guide on conversion rate optimization.
The Basics of the Amazon Conversion Rate
What Is the Conversion Rate on Amazon?
The conversion rate is one of Amazon’s seller metrics. It determines the number of visits to your product listings that turn into a sale.
Why Is It Important?
CVR is a vital Amazon metric for these various reasons:
It provides a broad view of your product listing’s health. See which areas perform well and which require improvement.
It increases the chances of getting a high product ranking.
It leads to a bigger customer base in the long run.
It contributes to your A/B testing evaluation.
What Is the Ideal Conversion Rate on Amazon?
The average conversion rate is between 10% and 15%. This indicates a good performance; the higher it gets, the better.
That said, various factors may change your idea of a good conversion rate. Here are two scenarios that talk about different conversion rate standards.
Amazon Prime members convert to as high as 74% (or greater).
The average e-commerce conversion rate is from 2.5% to 3%.
Don’t get confused with the metrics. Analyze the data you have to understand and evaluate whether your conversion rate is satisfactory.
How to Find Conversion Rates on Amazon
Look for the top menu bar on your Amazon Seller Central account. Go to Reports > Business Reports. You’ll find a detailed and downloadable report called Amazon Sales and Traffic.
Next, search for a row named Order Item Session Percentage. That’s where you’ll be able to view your conversion rate.
How to Calculate Conversion Rate on Amazon
If you are curious about how Amazon calculates your conversion rate or want to try it yourself, here’s the formula:
Total number of orders / total number of listing sessions = CVR
What Happens if Your Conversion Rate Is Low?
The CVR is directly associated with rank listings. So, a low CVR reduces the likelihood of increasing sales and being shown on the first page of the search results.
The good thing is Amazon won’t suspend your account for a low conversion rate. Still, that doesn’t mean you shouldn’t fix it. A low CVR means there’s a need for better strategies, which we will discuss in the next section.
Best Practices to Improve Your CVR
Target the Right Audience
Getting a lot of traffic is a good thing. Attracting the right traffic is another story. A common reason for low conversion rates is targeting the wrong audience. People do not buy because they don’t find it relevant to their needs.
Before launching your listings, make sure to understand your target audience well with these factors:
They should be customers who are looking for products similar to yours.
Your product solves their problems.
There may also be more than one group of people.
Consider their psychographics (e.g., interests and personalities) and behavioral (e.g., degree of loyalty and buyer expectations) patterns.
Check your Amazon demographics report to find more details about the audience you’re attracting.
Optimize Your Listings
A product listing is a touchpoint between you and your Amazon customer. What the buyer sees on it makes or breaks your CVR. So it only makes sense to optimize your listings to ensure successful conversions. Here are things you must keep in mind when creating listings:
Highlight your product’s advantages. Show them how your product helps a buyer and what differentiates it from your competitors. That said, focus on authentic content and avoid exaggerating your benefits.
Optimize your product images or videos. Ensure they’re clear and true to life.
Include relevant target keywords in the product description and title. But avoid keyword stuffing, as you may get flagged for it.
Set the correct product category for your listing.
Offer Something Special Occasionally
Increase traffic and turn them into conversions by providing special, limited offers like discounts. More buyers will purchase a product with a fantastic deal. This isn’t something you have to do daily, but it’s still significant in your marketing strategy. Special offers help you find a competitive edge in the huge Amazon marketplace.
Seek Opportunities to Enhance Customer Experience
Customer experience is a success factor in raising Amazon conversions. Buyers will not abandon their orders when the purchasing experience is pleasant and memorable. So always find ways to take the customer journey to another level. Think about important factors like customer service, shipping, or ad campaigns.
One way is to enroll your Amazon business in Fulfillment by Amazon (FBA). Make your products eligible for Amazon Prime’s benefits, such as two-day free shipping. This undoubtedly increases conversions because more customers spend on these perks. You’ll grow your listing views, orders, and
revenue.
FBA also transfers your order fulfillment and return processes to Amazon, reducing your workload. What more can you ask for?
Set Competitive Product Pricing
Competitive pricing gives you more opportunities to stand out from the Amazon crowd. It helps you get a higher ranking in Amazon’s search results and a chance to win the Buy Box. The Buy Box is where Amazon features a top seller’s product. Having yours featured on this spot increases visibility and conversion rate.
Look in several places to ensure that your pricing isn’t too low or too high. Popular examples include Amazon’s match low price filter, the lowest FBA seller pricing, seasonal pricing, dynamic pricing, and coupons.
Route Sales from Multiple Channels
Social media is unarguably a great place to market. Many people spend lots of their time on social platforms for information, entertainment, or shopping purposes. You shouldn’t skip this opportunity when increasing your Amazon CVR.
Create an omnichannel sales funnel. It’s a system in which customers from other channels, such as Facebook or Instagram, are directed to a landing with your Amazon listing.
Not only does it expand your customer base, but it allows customers to learn more about the product content through the landing page. That way, they can evaluate their decisions better, and you’ll target more buyers with high purchase intent.
Manage Customer Reviews
Many customers rely on reviews when buying a product. Reviews provide information about the item from a customer’s perspective, which may or may not persuade them to purchase. If they don’t buy yours, it could be due to bad reviews or a lack of social proof on your listing.
Monitor and manage your Amazon reviews regularly. Highlight positive reviews to give buyers confidence in choosing your product. Respond appropriately to negative ones to eliminate buyers’ doubts. And if you are successful, Amazon rewards you with badges such as Amazon’s Choice, Best Seller, and many more to foster customer trust and conversion.
Other Seller Metrics
Here are other seller metrics to track to avoid low rankings and account suspensions.
Order Defect Rate – Calculates the number of orders reviewed or returned as defective.
Valid Tracking Rate – Indicates the rate of packages with valid tracking numbers before shipment.
Inventory Performance Index – Refers to the performance of your Amazon FBA inventory over time.
Pre-Fulfillment Cancelation Rate – The number of orders you cancelled (due to out-of-stock) after a potential customer had already placed their order.
Late Shipment Rate: Indicates the frequency of your delayed shipments.
Seller Rating: An overall performance rate of your customer service, fulfillment process, and more.
