January 10th, 2023
With each new year, there comes a refreshed set of goals and updated challenges to address. Every year has its ups and downs. That’s why it’s important to take the time to reflect on our successes as well as our less-than-shining moments. One way we can analyze our businesses is to review the Amazon Conversion Rate.
We pick ourselves up, dust ourselves off, and move on to 2023 with our heads held high.
There’s no doubt about it. Amazon is the place to sell anything from greeting cards to mattresses, electronics and beyond. As of June 2022, it accounts for 37.8 percent of ecommerce sales. This means sellers from all over the world are flocking to this golden platform to get a slice of the pie. Whether you’re a seasoned seller with an established presence or brand new to the game, if you’re selling on Amazon, you’re in the right arena.
No matter how 2022 treated you, there is always plenty that is yet to be accomplished. If you’re an ecommerce retailer, you might already know that from 2023 to 2027, Amazon is expected to generate 491 billion U.S. dollars in new ecommerce sales. If your goal is to increase your Amazon conversion rate, you’re not alone.
But where do you start?
Boiling Down the Basics
Conversion rate is the ratio of sales to page views on an Amazon product listing. On Seller Central, the formula is:
Conversion rate = Orders ÷ Page Views
In other words, better conversions = better sales. It means more people who view your listing end up completing a sale. Not only is this good for your wallet, but it also means your advertising is effective; you are getting your point across clearly, and your listings are in good shape.
Amazon’s A9 algorithm is based on conversion rates as well as sales velocity to rank listings. If you have a low conversion rate, your product is less likely to be shown on the first page of Amazon search results.
Knowledge is Power
In order to set realistic goals, you have to know where you stand. Your starting point doesn’t necessarily have to dictate where you’re headed, but it can help you formulate a plan that makes sense for you.
To check your conversion rate, log in to Seller Central and head to the “Reports” tab. Click on “Business Reports” and then “Detail Page Sales and Traffic By Child Item.”
This report will show sales data for every item you sell on Amazon. It’s broken down into total sessions, page views, units ordered, product sales, and your conversion rate. Your conversion rate percentage can be found under “Unit Session Percentage.” This is where you can gather the data needed to determine your Amazon Conversion Rate.
Monitoring the performance of each of your products may be time-consuming, but it’s a crucial part of the process. You can filter by date to view a specific time range or view your entire history. Ideally, you should see ongoing improvement, and if not, it’s time to investigate what’s going on.
Set Realistic Goals
Whether you’re working on your own or with the guidance of an ecommerce consultant, treading water simply isn’t enough. Setting strong, measurable goals is the first step to success. In order to do this, you have to have a firm grasp on where you are, where you want to go, and how to make this happen.
While the average ecommerce conversion rate is between 1.5% and 3%, on Amazon, you want to aim for between 10% and 15%. Since Amazon is the world’s largest online retailer, its conversion rate is 22 times higher than the average conversion rates of North America’s top competitors. If you’re going to aim high, you’re in the right place.
It’s also important to keep your goals on par with your category. The average Amazon Conversion Rate can vary greatly depending on what you sell. This is just one of many reasons it’s crucial to keep an eye on your competitors and stay aware of any changes that may affect your listings.
Optimize Your Listings
Keeping your product listings in great shape is a surefire step to success. As any reputable ecommerce consultant will tell you, creating a successful listing takes time and attention - but with the right tools, anyone can do it! Optimizing your listings can draw traffic, increase visibility, and boost sales.
So, what exactly are the components of an optimized listing?
This includes long-tail keywords that are more specific with a lower search volume and higher conversion rate, and short-tail keywords that have a high search volume, higher competition, and a lower conversion rate.
- Product images
Images must represent each specific item and match your product title. The product must fill at least 85% of the image, have realistic color, and be in focus with professional lighting.
Be sure to take a few minutes to check out our guide for taking better product images, as well as identify Amazon requirements.
- Product titles
Titles must match your packaging, meet the character requirements of your product category, convey the most important information about your product, include necessary punctuation, and use numerals.
- Product descriptions and bullet points
Include brand names, sizes, material type, colors, packaging, and quantity. Use engaging, descriptive language to entice customers and show your product’s benefits while accurately representing its features and your brand.
- Search terms
- Log in to your seller central account.
- Navigate to Inventory and go to Manage Inventory.
- Find the listing and click Edit.
- Select the Keywords tab.
- Enter your keyword in the Search Terms field and save.
You can learn more about Amazon’s listing requirements here.
Make Customers Happy
Amazon is a customer-first platform, so if you want to succeed as a seller, you have to have a great product with exceptional customer service. Improving your products, taking customer feedback seriously, and being responsive is a great way to gain loyal customers and conversions.
On Amazon, there’s plenty of competition. Finding your sweet spot with pricing can be tricky. While you don’t want to sell your product at a loss, it’s important to stay on par with other products in your category and implement pricing strategies that keep customers coming back for more.
If you’re regularly tracking your Amazon Conversion Rate, it’s easy to spot potential issues and tackle them head-on. Be proactive about any issues that arise. Your reputation may depend on it.
Anyone who’s familiar with Amazon knows that reviews are as good as gold. Listings with more reviews usually have a higher Amazon Conversion Rate. In fact, 84% of shoppers trust online reviews as much as a recommendation from a friend, and 91% of shoppers read online reviews.
Reviews help customers get a feel for your product before they buy. They are more likely to try new brands with a strong arsenal of reviews, relying on “social proof,” the modern-day word of mouth. Making an informed purchase is important to consumers and gives your brand credibility.
To gain reviews, you can:
- Sell a great product
- Send follow-up emails asking for feedback
- Request Amazon reviews through your newsletter and social media
- Work with a reputable ecommerce consultant to boost your visibility
- Use Amazon’s Request a Review button
- Enroll your product in the Amazon Vine Program
Explore Fulfillment Options
Using Fulfillment by Amazon (FBA) is a foolproof way to increase conversion rates. This service allows businesses to outsource order fulfillment to Amazon. Sellers send products to Amazon fulfillment centers and when a customer makes a purchase, they pick, pack, and ship the order as well as provide all follow-up customer service and returns.
FBA makes your products Prime-eligible, (major win!) and makes your inventory far more appealing to buyers. Many customers feel more confident purchasing Prime products and are more satisfied with their purchases overall. Not only does this option draw higher conversions, but it can simplify your processes as well.
Looking to increase your Amazon conversion rate in 2023? Enlisting expert help is a great first step. We’re here to learn more about your company, optimize your listings, reduce your workload, and get you on the path to success. The first step is to fill out our contact form. From there we will send you an email to schedule a meeting time that works for you.