Turning your leads into customers is the goal of any business, be it offline or online. However, it is a lot more difficult to persuasively market your product to a buyer than it is in a regular store. This is because there are a wide variety of options from competitors, and also because of how distant customers feel from the brand.
The goal of eCommerce isn’t simply to get more visitors to click on the listing and check the product. The primary focus is on getting relevant leads. In other words, your target audience. Why? Because they are the ones who drive sales, which is what really matters.
In this article, we’ll talk about Amazon conversion rates, the factors that affect them, and how you can improve them.
What Does Conversion Rate Mean?
The Amazon conversion rate is basically a measure of how many visitors to your listing become paying customers. In other words, it is the rate at which your leads turn into sales, which determines how popular you are in the market.
If your conversion rate is too low, there might be a problem with the product or the way you’ve listed it on the site. Before we get into how to improve your conversion rate on Amazon, you need to know how to find out what your current conversion rate is in the first place.
Benefits of Amazon Conversion Rate
The following are some of the benefits that make the Amazon conversion rate a very significant metric in eCommerce:
- The conversion rate helps you assess how well your listings are doing overall.
- The more your leads are converted into sales, the higher up your product ranks on Amazon
- Your conversion rate is a good indicator of how effective your sales copy is. It gives you some idea of whether the content and product images are good enough to attract customers and persuade them to buy.
- By making changes in your listing, you’ll be able to find what works and what doesn’t by evaluating the conversion rate. Through simple corrections, you can quickly spot patterns that show a spike or dip in conversion rates. This helps you improve both marketing and sales performance.
- Amazon is one of the few online commerce sites where successful sellers have incredibly high conversion rates. So you can infer that when things work out, they work out extremely well. Some businesses have conversion rates that extend as high up as 15 percent. For prime sellers, this can exceed all the way up to 75 to 80 percent.
- The Amazon conversion rate is an important metric that the algorithm considers, alongside sales performance, when it comes to ranking your product on the site. The higher up you rank, the more visitors you can avail and the more sales you can make.
How to Find Your Product’s Conversion Rate on Amazon?
It is a pretty simple and straightforward process. The first step is to open the Amazon menu. Then proceed to the Reports section, where you’ll find Business Reports > By ASIN >Detail Page Sales and Traffic by Parent Item. Here is where you get the sales data on each product you’re selling.
Click on Total Order Items right next to the product you’re looking for and note the figure down. Now all you need to do is divide this number by the total number of sessions and you’ll find how many sales conversions have occurred for that particular product.
Keep in mind that you can set the time range as well, which is very useful when you want to analyze specific periods of business or spot any missed opportunities you can learn from. The default time frame is usually set to the previous 30 days, which you can change in the settings.
If you’re interested in the conversion percentage as a whole, just go to Business Reports> Order Item Session. This is for an overall, general view of how your business sales are doing, taken as a whole.
Stay Updated on The Conversion Rate
Keeping track of your conversion rates from time to time is a smart thing to do. It will help you notice peak periods as well as sudden declines. This way, you’ll also be able to set ideal goals or targets you need to achieve, which you can work towards by improving your listing.
In a nutshell, we calculate the conversion rates by dividing total visits by total sales. In other words, all we do is measure how many of those who visited the listing actually bought the product. And if the number is low, then the conversion rate is low. If it’s high, then the conversion rate is high.
Factors That Affect Conversion Rates
The following isn’t a comprehensive list of factors that affect your Amazon conversion rate. We’ve only compiled some of the really important ones that have a direct effect on it. They all usually have something to do with your listing.
Choice of Keywords
We’ve covered keywords in a previous lesson. Without a doubt, they’re one of the most crucial factors that affect your Amazon conversion rate. It is not so much the lack of good keywords that get you in trouble though. It’s the misuse or misplacement of keywords that become damaging. Let’s explain it this way.
Suppose you run an online listing that sells leather handbags for women. Now you could go with standard inclusive keywords. But you need to be accurate. In other words, if handbags for men are trending and you include that to benefit from the popularity, your business only suffers. How?
Because all the interesting male audiences will simply leave the listing when they realize that it isn’t relevant to them. In other words, you’ll end up unnecessarily adding more sessions that aren’t converting into sales. This is how the wrong or inaccurate use of keywords leads to a decline in Amazon conversion rates. The key lesson to note here is to make sure that all your keyword choices are appropriate and match your listing.
Positive Customer Reviews
A lot of potential buyers resort to the reviews section when they assess the product. Scrolling through numerous good reviews basically reinforces a positive image of your brand in the customer’s mind and puts their concerns to rest. One way to get reviews for your brand is pretty obvious. Respond to the feedback you’re getting, improve the product’s performance and most importantly, build good relationships with your clients.
If a buyer is impressed with your brand on any other site, they’re just as likely to drop a good review or rating whenever they notice you on Amazon. It’s important to keep this in mind when you deal with customers anywhere.
Improve the Quality of Your Content
A major way of boosting sales is improving the content quality of your listing. They might seem indirectly related. But there are several ways in which the quality of your marketing or sales copy can encourage customers to buy from you.
How to Increase Your Conversion Rate?
Optimize your listing
The first and only access your customers have to your product is the listing. Make sure your product images are top-notch and product descriptions are engaging yet informative at the same time. It’s the key marketing tool you have at your disposal when it comes to selling on Amazon. We’ve covered various ways to make your listing attractive in the previous lessons.
Focus during the launching phase
The initial launching phase demands a great deal of attention. This is exactly when a little bit of extra effort really counts. So don’t be afraid to exert yourself by promoting your product and brand in a big way.
Garnering more feedback reviews and marketing your product on all available social media platforms is the right way to go. A boost in sales during the launch phases can be very helpful in securing a positive brand image. This can in turn help you drive the sales conversion rate, get the positive feedback loop started and keep it growing.
Become a FBA seller
When you become an FBA seller, your products gain the added advantage of becoming eligible for delivery to Prime members. In other words, you can now access and cater to Amazon’s widespread customer-base of prime subscribers that you previously didn’t have access to.
Furthermore, the Prime eligible badge itself is a sign of credibility and trust for most buyers, including non-prime members. This makes your product all the more appealing and irresistible in a listing where a lot of products aren’t eligible for Prime members.
This is because when Amazon fulfills the order, customers get it delivered way faster than usual. Prime members are also very loyal customers which is another bonus that comes with it. So it’s no surprise that a Prime member access can be a boost to your conversion rates.
Use competitive pricing
You need to find a way to balance pricing. Overpricing might cause you to lose customers over to the next seller who offers a similar product at affordable rates. Price the product too low and you end up running a risk of loss. This is where you can resort to marketing techniques such as bundling, special offers, up-selling packages etc. to get customers interested in the product.
Buyers might be much more open to buying certain products together if they can get it at a discount instead of buying several overpriced items separately.
Work on the product quality
Ultimately, a surefire way to assure customer loyalty and brand following is pretty obvious. Try your best to put out a better product. Find ways to improve and you’ll end up fostering a long-lasting trust with customers.
Test different variations to see what works
Test out variations of content and product images in your listing. Find out which version gets you a better response and why. You can use the conversion rates as one of the guiding metrics for this purpose. It will help you improve your brand image significantly and help you gain more staying power in the consumer’s mind.
Frequently bought together products
Using the ‘frequently bought together’ feature is a great way to get customers interested in a packaged deal. It also helps you sell your product faster.
Building trust in customer relationship
Amazon allows sellers to respond to queries on the site itself. It’s highly important that you stay alert and active when it comes to responding quickly. Don’t let potential buyers feel uncomfortable about your brand because of your lack of engagement. If you’re getting way more queries than you can handle in a day, you can set up staff solely designated for this purpose.
Further, it’s a great idea to follow up on customers who buy the product. Request them to kindly share their feedback and keep them updated.
Sometimes the difference between a potential and actual buyer is just the speed of your response.
Responding to Reviews
If a customer leaves a good review, thank them and appreciate them for it. If it’s negative and valid, share your thoughts on how you’re willing to fix the problem. The success of your business online relies on your ability to build a reputation.
Highlight the problem-solving
We’ve covered the importance of demonstrating the benefits of a product more than its features. It’s a big part of what makes your sales copy great. You need to focus on how the product solves your customer’s problem and not on all the extra features and little add-ons that they aren’t familiar with.
Test new product images
If your product images aren’t up to standard, update them every once in a while with a fresher, better version. Check your conversion rates after you update them and see how much of a difference it makes. When it comes to Amazon marketing, you don’t have to stick with anything if you tested it and realized that it isn’t working. It’s all about trial and error.
Study your competition
So far we’ve only covered analysing your own business for flaws. There’s something far more effective that you can do to improve your conversion rates: Analyse your competition and find out what drives their successful rates. It is a great way to learn by example. Instead of trying to spot what you did wrong, look at what you could be doing right.
Go through the product listings of your rival brands and give their product images and descriptions a thorough assessment. Note the keywords and key terms they use. The style and tone of the marketing copy are all great indicators.
So far we’ve covered some of the most crucial factors that can help improve your product’s conversion rates. The key is to experiment and find what works best for your brand. If you find your rates declining, don’t panic. Just take the time to carefully assess what you’re doing wrong and what you could be doing right. The above factors can serve as guidelines and indicators to help you in doing that.