How to Calculate Conversion Rate and Why It Matters on Amazon

January 11, 2023
Written by Ken Zhou
woman in pink calculating

If you’re a seller on Amazon, putting your best foot forward is a surefire way to drive sales. It's why every seller on Amazon Seller Central strives for maximum performance. But how can you ensure you're using the best strategies if you don't know how to calculate your conversion rate?

The conversion rate calculation is a metric that allows Amazon sellers like you to measure how well your products perform and help you gain insight into your customers' journeys. If your sales conversion rate is high, it means people are interested in your products and buy them.

This blog will walk you through how to calculate a conversion rate and help you improve your bottom line.

How to Calculate Conversion Rates

Amazon has made a powerful platform that makes it easy for businesses to turn visitors into customers quickly. Its technology is cutting-edge, its delivery system is fast and reliable, and the user experience is simple and easy to understand. But of course, they would only be able to do that if they knew their metrics.

Amazon Seller Central makes calculating your eCommerce conversion rate relatively straightforward. With just a few simple steps, you can gain valuable data to help you set and reach goals of optimizing your performance on the platform. You can follow these simple steps: 


Step 1: Under the Reports tab, click Business Reports

Step 2: Take a look at the sales and traffic. 

Step 3: Look at the Order Item Session Percentage to see your items' conversion rate. 

Step 4: If you want to see it per product, see the "by ASIN" reports.

Amazon makes it easy for their sellers to keep track of their metrics, like conversion rates. But if you want to know how to calculate your conversion rate manually, the formula is simple: 


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

You need to determine the total number of sessions for the period you're looking at online. 

Then, divide that number by the total number of orders you received during that period. Lastly, multiply this rate by 100 to get a percentage figure reflecting your overall or per-item performance on Amazon. 

With this simple calculation, you'll have all the data you need to understand how customers engage with your Amazon products, paving the way for increased conversions in the future.

What Is the Expected Conversion Rate Percentage?

You want to aim for an impressive conversion rate on Amazon, so your products can get your target customer's attention and increase Amazon sales. You can achieve it by implementing the right strategies and techniques. 

A reasonable conversion rate for Amazon should be between 10% and 15%. This percentage is quite achievable with the right approach to Amazon listing optimization, targeting the right customers, and creating persuasive copy that engages shoppers. 

How  Does Conversion Rate Help Your Business?

It's important to remember that a good sales conversion rate depends on the products you sell and the quality of your data.

For example, if you had 500 sessions and 30 orders, your conversion rate would be 6%. It's an even more impressive rate than 50% for four sessions and two orders. The quality of data can make all the difference when it comes to the success of your marketing strategy.

By looking at these results, it's easy to see which listings are doing better than others. This analysis can help you think of possible strategies and solutions to help your business improve on Amazon.

Why Does Your Conversion Rate Matter?

Pen and inscribbled why it matters note

Conversion rates are important metrics for judging the success of digital marketing campaigns. It measures the number of visitors to your product listings who take the desired action—how many people are buying what you're selling. With them, you can determine how well your campaigns are doing and decide what to do next. 

A high conversion rate is a sign that potential customers find value in what you offer; they like your product and want to buy it. A poor conversion rate, on the other hand, indicates that something isn't quite right; you may be targeting the wrong audience or failing to market effectively. 

You can increase conversions by optimizing your product listing, writing a compelling product description, and using your sponsored ads to talk to customers in a way that shows you care about them. Offering discounts and deals can also increase conversions by making customers feel more compelled to purchase from you.

How to Improve Your Conversion Rate

Improve conversion rate

We've established the importance of having a high conversion rate. Now, how can you improve your conversion rate? Here are some simple tips to get you started:

Optimize Your Product Listing

Make sure that your product listings are optimized with the right keywords, images, and detailed descriptions. Your product pages should be well-organized and easy to follow, so shoppers don't have to click through the depths of Amazon to find what they're looking for online. 

You can also make your listing more likely to convert by adding helpful customer reviews and ratings that show why people should buy from your Amazon store.

Advertise Your Products

Use the marketplace's tools, such as sponsored products on Amazon, to reach more potential customers. For example, your Amazon PPC ad campaign will help make your products more visible and give you more chances to make sales. You can also offer discounts or special promotions to incentivize shoppers further. 

Make Use of Your Analytics Data

It's critical to use analytics data to increase your conversion rate. By knowing how shoppers use your products, such as what they buy and how often they visit, you can improve your product listings and make sure your Amazon ads reach the right people. 

Analyzing analytics data can also allow you to tailor your store experience to increase customer engagement and purchases and target potential customers more efficiently and effectively. 

Pay Attention to Customers’ Feedback

Keeping an open mind about what your customers have to say and using them as useful information to improve your product can also help you increase your conversion rate. It also lets you learn important things about how to market our products most effectively, giving you an edge over competitors.

By using customer feedback to develop and improve your product constantly, you can make sure that it fits the needs of consumers in the best way possible, leading to better performance over time.

Final Thoughts

Assessing your conversion rate data is important when making your marketing strategy. You can achieve this by improving your strategy based on market trends and customer demands. As a result, you can significantly improve your conversion rate and increase your profits over time.

Seller Interactive helps Amazon sellers increase their conversion rates and take some of their work off their shoulders. With our team's expertise and understanding of the Amazon marketplace, you can trust that we can provide strategies that will increase conversion rates and make selling easier. So book us a call today!

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