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Which do you prefer: three customers making a purchase or a thousand customers with only two making a purchase?
Most likely, the former.
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 on top of the shopping results? Here's a quick guide on conversion rate optimization.
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.
CVR is a vital Amazon metric for these various reasons:
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.
Don't get confused with the metrics. Analyze the data you have to understand and evaluate whether your conversion rate is satisfactory.
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.
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
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.
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:
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:
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.
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?
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.
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.
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.
Here are other seller metrics to track to avoid low rankings and account suspensions.
How many online buyers clicking on your Amazon listing actually make a purchase? Increasing the conversion rate in this marketplace is challenging due to high competition and digital distractions. So it's necessary to keep customers engaged and encouraged to buy your product.
As an Amazon seller, you must have an average of 10% to 15% conversion rate. The higher the rate, the higher your ranking and sales. If you fail, you lose these ranking and sales opportunities.
To increase your CVR, be sure to target the right customers. Optimize your listings, offer discounts, enroll in FBA and Amazon Prime, keep your prices competitive, create omnichannel sales funnels, and manage social proof.
Ecommerce is challenging, but it doesn't always have to be that way. With the right knowledge about Amazon's CVR and how to achieve it, success may be just around the corner!
Not getting enough conversions for your Amazon products? Work with Seller Interactive to improve your conversion rate. We are a full-service Amazon advertising agency helping you build your Amazon business from A to Z.
We got your back with account management, product launches, Amazon PPC campaign creation, Amazon SEO, and many more. Book a call now for more information.
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