The definition of conversion rate on Amazon is one of the most crucial metrics for understanding marketing & performance – and it’s a must-know for any Amazon seller and marketer.
While conversion rate can apply to multiple metrics for each business/website… the definition of Amazon conversion rate is the same across the ecommerce and online retail industry – so there’s no confusion or mix-ups.
In this article, we’re going to cover exactly what Amazon conversion rate is – along with why it’s important, how to calculate it, how to track it, what impacts it, and how to improve it. Not only will you walk away knowing exactly what conversion rate is… but you’ll also know how to improve it and grow your Amazon business more profitably. Let’s dive in!
Use this outline to skip to any section of this page:
- What is the definition of Amazon conversion rate?
- Why is conversion rate on Amazon important?
- How do I calculate conversion rate?
- How to track conversion rate
- Where can I find conversion rate in Amazon Seller Central?
- What factors impact conversion rate?
- How does conversion rate affect revenue & profitability?
- How do I improve conversion rate on Amazon?
- Tools to use for Amazon conversion rate
- PPC advertising
- Winning the buy box
- Product search ranking
- Seller rating
What is the definition of Amazon conversion rate?
Conversion rate is the percentage of page viewers (in this case, Amazon shoppers that view your listing) that successfully purchase. It’s one of the most important metrics that goes into not only Amazon, but online retail as a whole – since conversion rate directly impacts revenue, profitability and growth. If you can boost your conversion rate… you can expect your business to grow and scale much easier.
Why is conversion rate on Amazon important?
This metric helps determine what is and isn’t working – especially when it comes to listing optimization and product/market fit. You can run endless split tests to impact conversion rate, and it’s used across almost any marketing strategy you can use for Amazon. Whether it’s PPC, social media marketing, influencer marketing, or SEO – conversion rate is involved with each one.
How do I calculate conversion rate?
You simply take the amount of purchases and divide by the total page views. For Amazon, this means taking your purchases and dividing by listing views.
You can either use total listing views, or unique listing views (in other words, if a shopper views your listing 4 times before purchasing, you can choose to use 4 if you want total views, or 1 if you want unique views).
Conversion rate is expressed as a percentage – typically between 0% and 10%. Anything over 10% is nearly-impossible to achieve, and you’ll almost always see between 0-5%. Anything more than 5% is extraordinarily good.
How to track conversion rate
There are many ways people track how conversion rates change over time on Amazon – the most common for new sellers is to download spreadsheets from Seller Central and slowly build up a repository of data points that can help determine if your conversion rate is going up or down. More advanced sellers tend to use tools that automatically track their how their conversion rates are changing over time. Our favorite Amazon seller tool for tracking conversion rates is Junglytics. Its killer feature is its ability to show you conversion rates for any subset of ASINs in your catalog. Want to see how just one product line is converting? How about just your 2 packs? Only items from the US market?
Where can I find conversion rate in Amazon Seller Central?
Under Reports, select Business Reports > Detailed Page Sales and Traffic Reports by Child Item. This allows you to sort by conversion rate across several filters and selections – and you should play around with it to determine your most meaningful conversion rate metrics (based on your goals, advertising strategies, etc).
What factors impact conversion rate?
There are a number of factors that can impact a product’s conversion rate on Amazon:
Competitive pricing is a key factor in determining whether or not a customer will make a purchase. If a product is too expensive, customers may be hesitant to buy it, even if they are interested in the product.
On the other hand, if a product is too cheap, customers may be suspicious of its quality. It is important to find the right price point for your product that will make customers feel comfortable making a purchase.
Product quality is also a crucial factor when it comes to conversion rate on Amazon. Customers are more likely to buy a product if they believe that it is high quality. This means that you need to ensure that your product meets or exceeds customer expectations.
You can do this by testing your product before you launch it, using high-quality materials and construction techniques, ensuring that your customer service is top-notch, and properly inspecting your products with an FBA prep service like zonprep.com.
Stock availability plays a huge role when it comes to conversion rate on Amazon. If a customer cannot find a product on Amazon, they are unlikely to purchase it. This means that you need to make sure that your products are listed on Amazon and that they are available for Prime shipping. You should also make sure that your inventory levels are accurate so that customers do not encounter out-of-stock messages.
Finally, competition and saturation is another factor that can impact a product’s conversion rate on Amazon. If there are many similar products available on Amazon, customers may be more likely to choose one of those products over your product. This means that you need to differentiate your product from the competition and make sure that it offers something unique and valuable to customers.
How does conversion rate affect revenue & profitability?
The conversion rate is a metric that measures how successful a website is in turning visitors into customers. For Amazon sellers, the conversion rate affects revenue and profitability in two ways.
First, a high conversion rate means more sales and higher profits. A 1% increase in the conversion rate can lead to a 10% increase in profits. Second, a high conversion rate means that Amazon is more likely to rank the seller’s product higher in search results. This leads to even more sales and higher profits.
There are several factors that affect the conversion rate, including the design of the product description, the quality of the products, and the marketing efforts. Amazon sellers can improve their conversion rate by improving their product descriptions and using effective marketing techniques.
How do I improve conversion rate on Amazon?
There are a few simple ways to improve your conversion rate on Amazon:
Optimize your listings
If you want to know how to optimize your Amazon product listings, there are a few key areas to focus on in order to improve your conversion rate. The first is your title. Make sure it accurately describes the product and includes keywords that shoppers are likely to use when searching for it. The second is your description – where you can sell the product, highlighting its features and benefits.
Be sure to use persuasive language and include testimonials from happy customers if you have them. By focusing on these key areas, you can optimize your Amazon listing and see improved results.
Enhance your product images
When it comes to online shopping, first impressions are key. If your product images don’t look good, customers are likely to move on to a competitor’s page. Luckily, there are a few things you can do to enhance your product images and improve your conversion rate on Amazon.
The first step is to make sure your images are high quality. This means taking pictures of your product from multiple angles, using good lighting, and ensuring that there isn’t any glare. If you’re not sure how to take good product photos, there are plenty of online tutorials available.
Next, you’ll want to add some context to your images. Show the customer what the product looks like in use, or in its natural environment. This can be done by adding lifestyle shots or using models to show the product in action.
Finally, make sure your images are properly formatted for Amazon. They should be at least 1000 pixels wide, and the file size should be as small as possible without compromising quality. You can use a free photo editing program like Picasa or GIMP to resize and optimize your images.
By following these tips, you can create product images that look great and help convince customers to buy your product.
Improve customer reviews
There is no question that online reviews can play a major role in the success or failure of a business, and this is especially true for Amazon sellers. A recent study by PowerReviews found that nearly two-thirds of online shoppers read product reviews before making a purchase, and that number is even higher for those shopping on Amazon. This makes it crucial for Amazon sellers to have high-quality customer reviews if they want to be successful.
But what can sellers do to increase the number of positive customer reviews they receive? One of the best ways is to outperform competitors on customer experience. Make sure orders are shipped quickly, respond to customer inquiries promptly, and resolve any issues as quickly as possible.
You should also respond to customer questions that are revealed on your product page – since many shoppers view this section before deciding to purchase. This can have a solid impact on your conversion rate.
Whatever methods you use, it’s important to keep in mind that quality always trumps quantity. Make sure your products are high-quality and meet or exceed your customers’ expectations, and you’ll be rewarded with more positive reviews.
Using FBA instead of FBM
If you’re looking to boost your conversion rate on Amazon, using FBA instead of FBM can be a great way to do it. FBA stands for ‘Fulfilled by Amazon’ and refers to the process of having Amazon handle the storage, shipping, and customer service for your products.
FBA allows you to ship your products through Amazon’s warehouse, which can lead to faster shipping speeds and better customer service. This can be a great option for businesses that are looking to grow their sales on Amazon, as it can help to increase exposure and improve customer satisfaction.
Despite the costs of FBA, using this fulfillment method can be a great way to stay competitive with a high conversion rate. The increased exposure and improved customer service can also lead to a better reputation for your company. If you’re considering using this method, be sure to weigh the pros and cons of FBA vs. FBM carefully and make the decision that’s best for your business.
Tools to use for Amazon conversion rate
When it comes to boosting your conversion rate on Amazon, there are a few key tools and strategies that you can use to help you out. The first is a freelance copywriter or marketing agency. A good copywriter can help you create compelling and effective product descriptions that will convince shoppers to buy your product. Additionally, a marketing agency can help you develop a marketing strategy that will improve your visibility on Amazon and drive more traffic to your product page.
Another great tool for boosting your conversion rate is professional product photography. Good photography can make your product look more appealing to shoppers and increase the chances that they will click through to your product page. If you don’t have the budget for professional photography, consider using a service like Fiverr to find a photographer who can help you out.
Finally, another important tool for optimizing your conversion rate is an FBA prep center. An FBA prep center can help you inspect your products for quality and make sure that they meet Amazon’s standards. This will help ensure that your products look their best when they are displayed on Amazon and will increase the chances that shoppers will buy them.
PPC advertising
You may be wondering what the relationship is between Amazon PPC and conversion rate – and is Amazon PPC worth it? Many people believe that there is a direct correlation between the two, with increased spending on Amazon PPC resulting in a higher conversion rate. However, this is not always the case. In fact, there are a number of factors that can influence a company’s conversion rate, regardless of how much they are spending on Amazon PPC.
Product selection
One of the main things to consider when looking at Amazon PPC and conversion rate is the type of product that you are selling. Certain products may be more suited for Amazon PPC than others.
For example, products that are easily found through search engines or that are impulse buys may not need as much advertising spend in order to see a good return on investment. Conversely, products that are considered to be more niche or that have a longer buying cycle may benefit from more aggressive advertising spending through Amazon PPC.
Listing quality
Another thing to consider when examining the relationship between Amazon PPC and conversion rate is the quality of your product listing. A well-written and keyword-rich product listing can help to increase your conversion rate, even if you are not spending a lot on Amazon PPC. Conversely, a poorly written product listing can hurt your conversion rate, even if you are spending a lot on advertising.
When it comes down to it, there is no one-size-fits-all answer when it comes to Amazon PPC and conversion rate. The best way to find out what works best for your business is to experiment with different advertising strategies and see what produces the best results.
Winning the buy box
The buy box is one of the most important aspects of Amazon. It is the small box on the right-hand side of the screen that contains a picture of the product and the price. It is also where the “Add to Cart” button is located. The buy box is so important because it is where customers make their purchase.
A recent study found that products in the buy box have a conversion rate that is almost three times higher than products that are not in the buy box. This means that products that are in the buy box are more likely to be purchased by customers than products that are not in the buy box.
There are several factors that go into determining which product is in the buy box. Some of these factors include the price, the availability of the product, and the seller rating. The seller rating is especially important, because it is one of the main factors that Amazon uses to determine which product gets placed in the buy box.
Product search ranking
When people are looking for a product to buy, they often turn to Amazon. This is because Amazon has a high conversion rate, meaning that people are more likely to buy something after finding it on Amazon than on any other site. This is due, in part, to the fact that Amazon has such a comprehensive selection of products – with a robust search engine that is highly-convenient for shoppers.
People trust Amazon to have high-quality products, and they know that they can find just about anything they’re looking for on the site. Additionally, Amazon offers great customer service, and shoppers know that they can count on the company to help them if they have any problems with their purchase.
All of these factors contribute to Amazon’s high conversion rate, and as a result, the site often ranks higher than its competitors in Amazon’s search engine. This means that if you’re selling a product on Amazon, you’re more likely to get traffic from the site than if you were selling on another platform.
Therefore, it’s important to make sure that your product listing is optimized so that it will rank as high as possible in Amazon’s search engine. You can do this by using the right keywords and making sure that your product description is clear and concise. You should also make sure that your images are high-quality and that your listing is well-formatted.
If you follow these tips, you’ll be able to increase your chances of getting traffic from Amazon and of converting those visitors into buyers.
Seller rating
There is no definitive answer as to whether or not a high conversion rate on Amazon leads to a high seller rating. However, many sellers believe that the two are interconnected. Having a high conversion rate means that potential buyers are more likely to purchase your product than if your conversion rate was low. This, in turn, can lead to a higher seller rating because buyers are more satisfied with their purchase.
A high seller rating can also lead to a high conversion rate. When buyers see that a product has a high seller rating, they are more likely to trust the product and be more likely to convert into a sale. Therefore, it’s important for sellers to focus on both their conversion rate and their seller rating in order to create the best possible experience for buyers and increase their chances of making a sale.
