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As a seller, it is good to be focused on your online sale profits but there are valid reasons to pay attention to the Amazon conversion rates for the products that you sell on the marketplace.  

Even you are aware of kind of effort that goes into setting-up and building an online business, especially e-commerce.

Firstly, you got to decide what items you are going to sell.

Once you decide this, you have to look for places to source your products for a good price. This phase is then followed by setting your store, sending visitors to your product pages either organically or paid advertising.

So, that’s it, and you are all set, right?

Well, there is more, which is beyond your imagination at times.

In a competitive digital world, it is vital to keep your customers engaged and get them to buy what you sell. This is called conversion.

It isn’t one of the most important metrics that you will need to plan, grow, and increase your business revenue.

And conversions don’t just happen on their own. You have to optimize your product pages for it.

That’s something that we are going to share with in this blog. So, let’s started.

Quick Guide:

  1. What Is Amazon Conversion Rate?
  2. What Is A Good Conversion Rate For Ecommerce?
  3. What Is A Good Conversion Rate For Amazon?
  4. How To Calculate Conversion Rates On Amazon?
  5. How To Track Your Conversion Rates On Amazon?
  6. How To Increase Amazon Conversion Rate?

What Is Amazon Conversion Rate?

Based on the data acquired from Millward Brown Digital, a renowned firm that measures the website traffic, reported that Amazon Prime members have a conversion rate of 74% whereas the non-prime members convert typically at 13%.

Now, these numbers are considerably greater than the top 500 online merchants. And no wonder Amazon Prime is so successful. In simple words, the reason their conversion rates are above the average is due to the profoundly consumer-centric convenience program.

The “Amazon Prime” plan is one of the largest contributors to the company’s success. With Prime, the members get:

  • Free 2-day shipping
  • Movies
  • Digital Music
  • E-books
  • Television shows via Amazon’s instant video service

For a yearly price of $99, the benefits are remarkable, and the number of sign-up Amazon receives are sky-high.

In 2015, Amazon ranked second in worldwide online retailers, with Alibaba in the first. But this big digital merchant took to reclaim its throne in a huge way.

Right before Amazon announced its big plans for Black Friday with Amazon Prime Day, they also publicized that the conversions made in the digital storefront were astounding when compared to other competitors in North America.

According to the reports by Millward Brown Digital, amongst top 500 internet merchants, the Amazon Prime members interacted or engaged with the Prime features more and converted 74 percent of the time. On the other hand, the conversion rate of others on average was 3.32 percent.

Astonishingly enough, even shoppers who aren’t a part of the Prime Program still tend to convert at a percentage much greater than the average. It is nearly 4 times the average rate, converting 13 percent of the time.

In addition, Amazon has not only accomplished a conversion rate that is 22 times greater than the usual standard, it has also topped the list. Earlier in 2015 (April), Amazon managed to incline its conversions by 11%, from 63 to 74%.

Ankitha has great tips to increase your conversion rate in this video. WATCH:

What Is Conversion Rate for an Ecommerce Store?

The conversion rate is the percentage of visitors, who land to your website or product page and complete any desired action.

In order to define your conversions, you have to accurately set your end goals.

Talking about ecommerce conversion rates, it is the percentage of visitors coming to the website who bought something from the online store for a specific time. But this metric isn’t the only way to check the success rate of your online store.

There are a few other ways to check for conversions for any ecommerce website, and these include:

  • A shopper adds a product to the cart.
  • A shopper adds a product to the wish list.
  • A shopper buys a product or generating a sale.
  • Social media shares.  
  • Email signups.
  • Any KPI (Key Performance Indicator) that your business finds it valuable.

“Conversion” is a wide topic because there is so much going on here. It impacts every factor of your site’s user experience.

On the other hand, conversion rate optimization (CRO) is the method of enhancing the shopping experience in order to drive a particular KPI — generally, sales.

CRO can be done on category pages, landing pages, product pages, or anything where a shopper can reach.

What Is A Good Conversion Rate For Ecommerce?

The ecommerce conversion rate on an average is from 1% to 2%.

Although you do everything correctly, you can predict to win a sale of about 2%.

A 2+ percent conversion rate must be the base for your online selling business.

Note that there are noteworthy conversion rate differences between countries, industries, devices, seasons, and much more.

Hence, it is vital to develop your KPIs depending on the average conversion rates in your domain industry, taking your data into account as much as possible.

In addition, you must always be cautious while making comparisons with the competitors. For example, on average, Amazon boasts a conversion rate of 13%, which is about 7 times the market average.

Amazon’s A9 Algorithm

The product that you sell ranks based on various factors. This is taken care by Amazon’s unique algorithm – A9. In short, products on Amazon marketplace are displayed based on tow important metrics:

  • Relevancy
  • Popularity

Though there are multiple factors, which contribute to the A9 algorithm, here is a personal experience that James from InternetBizUni demonstrated while calculating the factors of Amazon algorithm.

amazon conversion explained for sellers
Amazon Conversion Info

If you look at the above chart closely, you will notice that the following factors are highly influential in determining the Amazon rankings:

  • Conversion rate
  • Organic sales
  • Sales history

What Is A Good Conversion Rate For Amazon?

It is hard to determine what is a “good” Amazon conversion rate because it differs based on the kind of products you sell. On average, a good conversion rate aim on Amazon is between 10% and 15%.

For instance, if your conversion rate is 50%, you will be jumping with excitement, right? However, if you had to look into the data of this conversion properly, the scenario will be different.

Say, for example, if you had 4 sessions & 2 orders. You wouldn’t be that happy unless you are selling your products for an extremely high price and greater profit margins.

Let’s say that you had a conversion rate of only 3%, given that your products had 3,000 sessions & 90 conversions. This figure will keep you happy because you had a great number of sessions and sales.

How To Calculate Conversion Rates On Amazon?

Amazon conversion rates are one of the key metrics for sellers because it helps you rank higher for your potential keywords on Amazon. As far as Amazon’s A9 Algorithm is considered, Conversion Rate & Sales Velocity are vital factors to make your business successful.

When your product listings begin to convert potential shoppers into customers, it indicates the algorithm that the product(s) you sell are relevant to the keywords or search terms that the customers are searching for.

When your listing converts into sales for potential keywords, your product’s visibility also receives a boost.

To calculate the Amazon conversion rate, use this formula:

Conversion rate = (The total no. of orders) ፥ (The total no. of product listing sessions)

You can even check the metric – Unit Session Percentage – to see your conversion rates on Amazon. This option shows “how many items were purchased for the number of potential shoppers who saw the product.”

How To Track Your Conversion Rates On Amazon?

Amazon conversion tracking involves only a few steps:

  • Step 1: Navigate to Reports and then, click Business Reports.
  • Step 2: Check the sales and traffic.
  • Step 3: Look for the row named Order Item Session Percentage. Here, you will have your conversion rate.
  • Step 4: This option groups all the items together.
  • Step 5: In order to obtain it by products, look for “by ASIN” reports.

How To Increase Amazon Conversion Rate?

Calculating your conversion rates is significant to see how your business is performing in terms of sales. This also influences the decisions that you take for your online selling business.

If you feel that there are possible pitfalls, follow these tips to improve your conversion rates:

1. Perform keyword research

While calculating your conversion rates, if the results show good traffic – then the next step is to draw higher click rate to your product listings.

The best way to achieve this is by performing keyword research. Ranking your products for related search terms or keywords on the Amazon SERPs (Search Engine Result Pages) gains three things:

  • Visibility
  • Traffic
  • Sales

Once you pick the right keywords for your product, the next step is to integrate the keywords in:

You can also use this Keyword Research tool to come up with potential keywords to target for your listing.

2. Create compelling product descriptions

Often, your product descriptions are one of the most ignored aspects while optimizing your listing. But know that a potential buyer will read through this section and make a decision.

Hence, your product description should be:

  • Simple to read and understand
  • Attractive enough to make a sale
  • Detailed and useful information about the product

3. Benefit – Oriented Bullet Points

Bullet points can simplify the process of reading and help buyers identify the key product features. But don’t include too many bullet-points. According to experts, 5 is considered a safe number to create a bullet-list.

It is important to end your bullet points with a CTA (call-to-action), which is direct (i.e. Buy Now, Order Today, etc.).

4. Use high quality images

This is the first thing that a buyer looks for when he or she reaches your product listing. Unless this is attractive, he or she is never going to go through other elements (bullet points, description, product details, FAQs, etc.).

Make sure that your product images are:

  • High quality
  • Clear, with a white background

No matter how incredible your product is, if you fail to keep it attractive, you have lost.

Recommended Guide: Amazon Product Photography

5. Keep your price productive

A great way to optimize your product listing is to set competitive prices. First, check your competitors’ prices. Now, it wouldn’t be a good idea to keep a less price than the competitors. This is due to 2 reasons:

  • Cheap doesn’t suggest quality
  • Profit is more essential than conversions, sometimes

While determining the price, undertake AB testing and see what actually works. Try running a sale or offer discounts to boost sales.

6. Follow-up with emails

The moment a buyer purchases your product, nurture that association. They are the ideal assets to promote your products – because they are the ones who bought your products and used them.

Hence, they can pave a path for promotion. But don’t bombard them with emails. Keep it in a way that you truly care about them.

Send a simple email right after they purchase your product and see if they are happy with it. Let them know you are open to concerns and queries. Add your email link so that they can enter their reviews or feedback based on their experience.

Besides this, it will be a fantastic idea to include a discount code in the email, as this encourages a second purchase.

Additional Read:
How To Improve Amazon Sales Rank
Amazon Pay Per Click Complete Guide
Free Amazon PPC Management Software

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