What Is the Amazon Conversion Rate?
As an Amazon seller, you know that driving traffic to your product listings is only half the battle. The other half is converting those visitors into customers. That is where your Amazon conversion rate comes in. Your conversion rate is the percentage of visitors who make a purchase on your product listing. Understanding and improving your conversion rate is essential to succeeding as an Amazon seller, as it directly affects your sales and revenue. This post will explore the Amazon conversion rate, why it's critical, and how to improve it to boost your sales and grow your business on Amazon.
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What Is Amazon Conversion Rate?
Amazon conversion rate (CVR) refers to the percentage of visitors who make a purchase on your product listing. In other words, it measures the effectiveness of your product page in converting visitors into customers. That is an important metric because it shows how many visits to your listing become sales.
Note: Amazon tracks your conversion rate for each of your product listings. A higher conversion rate can help your product listings rank higher in Amazon's search results, increasing visibility and sales.
How to Calculate Amazon Conversion Rate?
Calculating conversion rates on Amazon involves determining the percentage of visitors to your product listing who end up making a purchase. To do so, you must divide the total number of your orders by the total number of listing sessions (the number of times customers viewed your product page). For example, if 100 people visit your product listing and 10 of them purchase it, your conversion rate is 10%.
The higher your conversion rate, the more effective your product page is at convincing visitors to buy your product.
Calculating the conversion rate on Amazon step by step
- Step 1. Determine the number of visitors: You can get this information from your Amazon seller account. Go to the "Reports" section and select "Business Reports." From there, select the "Detail Page Sales and Traffic" report. This report will show you the number of sessions.
- Step 2. Determine the number of orders: This information is available in the same report. Look for the column that shows the number of orders for each product.
- Step 3. Calculate the conversion rate: To calculate the conversion rate, divide the number of orders by the number of sessions and multiply by 100. For example, if you had 100 sessions and 10 orders, the conversion rate would be 10% [(10/100) x 100].
What Is a Good Amazon Conversion Rate?
Generally, a conversion rate of 10% or higher is considered good for most Amazon sellers. However, it's important to note that what's regarded as a good conversion rate can vary based on the specific product and market niche. Some products may have a naturally lower conversion rate due to their price point or the level of competition in the market. What you consider a good or bad CVR is relative. Your conversion rate may be 50%, which could look very attractive, but with 6 sessions and 3 orders, it will pay off only if your product is extremely expensive.
Suppose your conversion rate is lower than 10%. In that case, it's essential to identify the factors that may impact your conversion rate and improve your product listing, pricing, or marketing strategies. Conducting market research, enhancing product descriptions and images, optimizing keywords, and offering promotions can all help improve conversion rates.
Note: It's essential to track your conversion rates over time to see how they change and identify areas for improvement.
How to Check Your Conversion Rates on Amazon?
Sellers can check their Amazon conversion rate by product in their Seller Central.
Checking Amazon Conversion Rate step by step
- Step 1. In your Seller Central, go to Reports > Business Reports.
- Step 2. Check the sales and traffic.
- Step 3. Find the “Order Item Session Percentage” row showing your conversion rate. This option displays all the items together.
- Step 4: Look for “by ASIN” reports to find CVR for specific products.
How to Increase Amazon Conversion Rate?
Many factors, including product listing quality, pricing, customer reviews, and more, can influence conversion rates. Implementing the strategies described below and continuously testing and optimizing your approach can increase your Amazon conversion rate and drive more sales on the platform.
Optimize your product listing
Make sure your product listing is well-written, informative, and visually appealing. Use high-quality images and videos, and make sure your product description is clear and concise.
Attract customer reviews
Encourage your customers to leave reviews, as positive reviews can increase your credibility and help boost sales. Respond to any negative reviews in a professional manner to show that you care about customer satisfaction.
Running sales, discounts, and promotions can entice potential customers to make a purchase. Consider offering free shipping or bundle deals to sweeten the offer.
Improve your pricing strategy
Pricing can play a significant role in the conversion rate. Ensure your prices are competitive, and consider testing different price points to see what works best for your product.
Optimize your Amazon SEO
Use relevant keywords in your product title, description, and back-end search terms to improve your search ranking and increase visibility.
Use Amazon PPC ads
Pay-per-click (PPC) ads can help you target specific keywords and increase your product's visibility in search results.
Improve your customer service
Provide excellent customer service by responding to inquiries and addressing any concerns promptly. That can help build trust and encourage recurring sales.
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As an Amazon seller, understanding and optimizing your conversion rate is critical to achieving success on the platform. By improving your conversion rate, you can increase your sales, grow your business, and ultimately achieve your goals on Amazon.
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