10 Ways Sellers Can Increase Their Conversion Rate on Amazon

1. What is the conversion rate on Amazon?
2. How can you calculate the Amazon conversion rate?
3. How does the Amazon PPC conversion rate differ?
4. Why is the CVR so important for the ranking on Amazon?
5. 10 tips with which you can improve the Amazon conversion rate of your products
6. Tool tips for increasing the Amazon conversion rate
7. Conclusion: Don't lose sight of the conversion rate on Amazon

Those wishing to sell successfully on Amazon cannot overlook one term: the conversion rate. It not only allows conclusions to be drawn as to whether a product is being purchased and can assert itself on the market. Above all, it is an essential basis for good rankings and thus visibility in the marketplace. If the conversion rate is not right, the traffic is worthless and sellers waste effort, time and money without being able to scale the visibility and thus the sales. Here you will learn how to avoid this and instead optimize the conversion rate on Amazon.

What is the conversion rate on Amazon?

The most important question first: what is the conversion rate (CVR) on Amazon and what does it actually say? The CR indicates how many visitors to a product ultimately make a purchase. So if a lot of users call up your product page on Amazon, but only a few actually buy the product, the conversion rate is correspondingly low. The evaluation and optimization of the conversion rate is therefore part of the homework of a successful Amazon Seller.

To have a long-term presence on Amazon, a conversion rate of 10% is considered a minimum. This year, Amazon has adjusted the measurement of mobile traffic and included it in the statistics and reports. This has led many sellers to halve their CVR. While mobile sales were already included in the CVR, mobile traffic increased significantly - which changed the CVR decisively.

In general, the more saturated and competitive a market is, the harder it is not only to build a stable CVR, but also to improve it. After all, the traffic and the purchase intent are distributed over a large sum of products.

How can you calculate the Amazon conversion rate?

Calculating the Amazon conversion rate is not complicated and all necessary values can be found in the Seller Central. The Amazon conversion rate is calculated as follows:

Sold units / sessions * 100 = conversion rate in %

Let's assume that 500 users have accessed your product in the last 30 days. The 500 sessions result in 10 sold units. The conversion rate is therefore 2%. In order to be able to better classify the value, a consideration of the sales and rankings of the competition should always also take place.

Note: In Amazon's Seller Central, the conversion rate can be found in the menu item "Statistics & Reports" under the name "Units per session".

How does the Amazon PPC conversion rate differ?

The advertising conversion rate is another important key figure. It is calculated as follows:

Sold units / clicks * 100 = advertising conversion rate in %

The advertising CVR is usually lower than the total conversion rate. Here too, it is necessary to take a closer look. Where are page visits collected that are most likely to convert into purchases? Where are sessions generated by Amazon PPC that push the traffic but do not generate any sales? If you dive so deeply into the numbers of your own account, you will find the right setting options that will bring success.

Why is the CVR so important for the ranking on Amazon?

The A9 algorithm from Amazon includes various factors that decide on the ranking of competing products. The conversion rate is also a crucial factor.

Imagine there are two very similar products on Amazon, which of course want to rank for the same keywords. Let's assume that product 1 has a conversion rate of 20%, product 2 only 4%. The probability that interested parties will buy product 1 after they have called up the product detail page is therefore significantly higher. So Amazon will rank this product better, as the marketplace is known to be interested in sales and satisfied users. In addition, product 1 benefits from a strong product performance due to the good conversion rate, which positively affects the ranking for additional keywords.

10 tips with which you can improve the Amazon conversion rate of your products

Tip 1: The Price

The price is of course a decisive factor as to whether interested parties choose your product or the competition. Therefore, always keep an eye on competitiveness and analyze whether you can justify possible price differences in your listing (e.g. through special USPs).

Even if it initially hurts the margin, it may be advisable to lower the price. A short-term and temporary price advantage can give the sales history a temporary boost and thus stabilize the conversion rate. Price adjustments in the form of coupons, offer prices and volume or staggered discounts can also boost your conversion rate. Especially discounts are displayed by Amazon with a badge on the search results page. That stands out, secures attention and can thus secure the coveted click of the customers.

Tip 2: Shipping

Those who order on Amazon mostly want to get the goods as quickly as possible. The Prime badge, which FBA sellers receive from shipping with Amazon, can be particularly sales-promoting. But even those who rely on FBM, i.e. their own shipping, can contribute to more conversions through a fast processing time (maximum 1 day).

Tip 3: Product images

The title image decides in the Amazon search about the click and therefore the page view - but for the conversion rate it is essential to exhaust all graphic possibilities. That includes:

• Variety: Use all seven available image slots
• Work with graphics and text: Text content in images is often read more than in the listing and can thus emphasize the USPs, properties and characteristics of the product
• Different motifs: Show the product in detail, application and mood pictures to make it as tangible and understandable as possible
• Use videos: They offer a lot of scope for detailed, convincing product presentations

Tip 4: Brand

If it is recognizable that a brand is behind a product, this promotes trust in the product and the likelihood of purchasing increases. Therefore, you should use all brand content for an optimized conversion rate on Amazon. This includes initially registering the brand in the Brand Registry and finally taking full advantage of options such as A+ content and brand stores. The benefits in advertising will also help you increase the visibility of the product: audience targeting, retargeting approaches in the sponsored display area, as well as video ads as brand campaigns are a real traffic generator.

Tip 5: Listing

The completeness of the product listing is extremely important. Not only Amazon insists on filling in all relevant fields, it is also helpful for customers. These include classic facts such as scope of delivery, dimensions, weight or material properties. But also USPs, applications, detailed descriptions and arguments that the competition does not have should not be missing. The more intensively and completely the end consumers can grasp the product, the more likely it is that the purchase intention will be fulfilled and your product will get the sale.

Tip 6: Reviews

As mentioned, the trust of the customers is particularly relevant for the completion of the purchase. And reviews continue to play a big role here. Even though Amazon automatically asks for reviews after purchases, sellers should use all (permitted!) options. This includes, for example, taking buyer-seller messages seriously and responding to them quickly and diligently. After all, this has an impact on seller performance (alongside, for example, good inventory management without out-of-stock situations, delivery punctuality, and the rate of order and invoice defects) and thus also contributes part to the conversion.

Tip 7: Questions

Users want to have all uncertainties cleared up before making a purchase. Questions on the product detail page are helpful for this. See the question area as a FAQ and answer all incoming questions. This is now even possible in video form.

Tip 8: SEO

The previous 7 tips can be considered basics, now we go deeper into detail. Check for optimizing the conversion rate whether you cover the right search terms in the listing and in advertising. Try to understand the purchase intention of the end consumers.

Why is this so important? Often when optimizing Amazon's conversion rate, attempts are only made to increase purchases, but the other factor, the sessions, should also be considered. The more targeted and relevant the traffic on a product, the better the basis for gaining conversions.

An example: You sell a metal composter on Amazon and keep getting views for the search term "Fast Composter". Then your listing can be perfected, the likelihood of achieving a conversion is lower than with the search term metal composter. So you will always receive traffic that is not relevant and dilute your conversion rate.

Tip 9: PPC targeting

You should also continuously optimize the targeting in your PPC campaigns. Use your Amazon PPC Tools to uncover and eliminate cost drivers that generate little turnover. They generate traffic on a product level that brings only a few conversions with it. Empty traffic that just costs you money and worsens the CVR.

But be careful: A balanced Amazon PPC strategy does not just aim to generate immediate sales, it also aims to achieve good organic ranking on the first positions. Cost drivers should therefore not be deactivated immediately without further consideration. After all, PPC sales also have a positive impact on organic rankings due to the improved sales history.

Practical tip: 4 well-known traffic-without-revenues drivers are:

1. Targeting (more powerful) competitor products due to a lack of competitiveness, as well as retargeting similar products to their own
2. Short-tail keywords with a lot of competition that target the same keyword organically and inorganically (PPC)
3. Category targeting (provided that you are not in niches with your own product)
4. Sponsored-Display audience targeting (with a lack of relevance or inaccurate or non-existent data about your own buyer group)

Tip 10: Structure

If you have a large range, use the option of building a parent structure. This is useful for products with different variants. By merging variants, not only are the reviews merged, but it also shows customers the large selection in colors, motifs, set sizes, etc. This makes it easier for buyers to choose and at the same time builds up their own organic cross-selling.

But be careful: Too large parents with too many variants also have quirks. If interested parties with a purchase intention click through the variants for a product, they gather sessions on each variant - but ultimately only buy one unit. So the visitors increase the traffic considerably and negatively influence the conversion rate when buying only one product.

Tool tips for increasing the Amazon conversion rate

Numerous helpful data, such as traffic and sales, can be evaluated directly in the Seller Central analysis reports. The aim here is to sharpen the overall overview (at total account and marketplace level) as well as the eye for detail (product group as well as parent and child level) and to set changes in the conversion rate in relation to implemented measures.

But some tools can make life as an Amazon Seller much easier. Helium 10 for example, makes it easier for you to deal with reviews and critical voices from buyers. For this, you can use the Chrome Extension "Review Insights" of the tool, for example, to go through the reviews in terms of content and to find out whether, for example, information is missing in the listing, the shipping is taking too long or whether there are details on the product that should be changed. The Helium10 feature Cerebro for regular keyword research for checking the targeting is also useful. And the ranking tracker can also be helpful, because improvements to the conversion rate ultimately also show in the rankings.

The tool Perpetua also offers similar functions. It offers clear and helpful insights into competitive insights, sales and revenue forecasts and also enables keyword research and keyword tracking.

Specifically for monitoring and optimizing your advertising campaigns, the tool BidX can be useful. With stored rule sets, for example, according to ACoS and Total-ACoS, it automates the bid adjustments of your campaigns, can take over the recording or exclusion of keywords and thus gives you a significant savings of effort and time.

Other tools that can support you in increasing your conversion rate on Amazon are:

Adspert

ADFERENCE

Finch

AMALYZE

Conclusion: Don't lose sight of the conversion rate on Amazon

The conversion rate is probably the most important factor for rankings and the profitability of an Amazon product. When evaluating and optimizing the conversion rate, you should always consider in which phase your article is currently. If the product has just been launched, price reductions, traffic development and the use of the FBA program with the Prime Badge should be used. This will gain visibility and convince end consumers with the listing and the product conditions and the Amazon algorithm with an established sales history.

If, on the other hand, the product is already on stable ground, the shipping and selling price should not be adjusted to a margin-eating point at all costs, but the conversion rate should be tackled by questioning and optimized targeting of traffic and possible adjustments to listings and product quality.