As a seller, it’s important to concentrate on your sales online. However, there are good reasons to be aware of your Amazon conversion rate for the items you offer in the Amazon marketplace.
You may know the effort involved in creating and establishing an online company on Amazon.
The first step is to choose what products you will offer for sale.
After you’ve decided this is the case, you need to search for sources to purchase your products at a fair price. The next step is to follow by setting up your shop and directing customers to your pages for products either organically or via paid advertising.
That’s it. You’re prepared, aren’t you?
But there’s more that’s out of your mind at times.
In the digital age of competition, you must ensure that your clients are interested and convince them to purchase your products. This is referred to as conversion.
It’s not one of the most crucial metrics you must plan to grow, expand, and increase the revenue of your business.
And conversions can’t happen by themselves. You must improve your Amazon pages for products to make it easier for conversions.
We’re going to discuss Amazon Conversion Rate, Process and Monitoring For Sellers in 2022 in this blog. So, let’s start.
What is Amazon Conversion Rate?
Based on data collected through Millward Brown Digital, a famous company that studies website traffic, it was found that Amazon Prime members have a conversion rate of 74%. In contrast, non-prime members typically convert at 13 percent.
The numbers above are much higher than those of the 500 top online sellers. It’s no wonder Amazon Prime is so successful. Simply put, their conversion rates are greater than their averages because of their highly consumer-focused convenience program.
“Amazon Prime” plan, is among the major factors contributing to the company’s success. With Prime, subscribers receive:
- Free 2-day shipping
- Films
- Digital Music
- E-books
- Television shows with the Amazon Instant Video service
At a cost per year of $99, The benefits are amazing, and the number of sign-ups on Amazon gets astronomical.
The year 2015 saw Amazon ranked 2nd among the world’s largest online retailers and Alibaba being the first. However, the giant online retailer has fought back to take over the throne in a massive manner.
Before Amazon revealed its major announcements in preparation for Black Friday with Amazon Prime Day and Amazon Prime Day, they also announced that the conversions made on the storefront were staggering compared to other rivals within North America.
According to reports from Millward Brown Digital, in the top 500 online merchants that Amazon Prime was the most popular. Amazon Prime members interacted with or used Amazon’s Prime features more frequently and converted 74 % of the time. In contrast, the conversion rate of others is 3.32 percent.
Amazingly enough, even customers who aren’t members of the Prime Program can convert at a higher rate than the mean. This is almost 4 times higher than the average and converts 13 percent of the time.
Additionally, Amazon has not only recorded a conversion rate that exceeds 22 times the norm. However, it has also been ranked first on the list. In 2015 (April), Amazon managed to increase its conversion rate to 11% and go from 63 to 74 percent.
What is the Conversion Rate for an E-Commerce Store?
Conversion rate refers to the percentage of users who land on your site or product page and take the desired actions.
To determine your conversions, it is necessary to be able to define your exact end objectives.
In terms of conversion rates for eCommerce, It is the proportion of people visiting the site that purchased something for the specified period. However, this isn’t the only method to determine your website’s effect.
There are different ways to determine conversions on any eCommerce website. These are:
- The shopper can add products to the cart.
- A customer adds a product to the Amazon wish list.
- A customer purchases an item or generates an order.
- The shares of social media.
- Email signups.
- Every KPI (Key Performance Indicator) that your company finds useful.
“Conversion” will be considered a broad subject because there are many things to be considered. It affects every aspect of your website’s user experience.
However, conversion rate optimization (CRO) improves the shopping experience to increase a specific KPI. Typically it is sales.
CRO can be performed on product pages, landing pages, or any other page that a shopper can access.
What is a good Conversion Rate for E-commerce?
It is estimated that the eCommerce conversion rate ranges between 1 to 2.2%.
If you follow the rules, you may make approximately 2.2%.
A conversion of 2+% rate is the minimum for your online business selling online.
It is important to note that significant conversion rates exist between different countries and industries, devices, seasons, and more.
Therefore, creating your KPIs based on the average conversion rate within your industry is essential while considering your own data as much as possible.
Additionally, it would help if you were extremely cautious when conducting comparisons with the competition. For instance, on the basis, Amazon has a rate for conversion of 13 percent, which is 7 times higher than the market average.
Amazon’s A10 Algorithm
The product you offer is ranked based on a variety of factors. Amazon’s exclusive Algorithm, A10, handles this. In simple terms, the products available listed on Amazon’s marketplace are displayed on Amazon Marketplace are showcased according to two crucial parameters:
- Relevance
- Popularity
Although many factors influence the A10 Algorithm, here is an experience James from InternetBizUni explained while calculating the aspects of Amazon’s Algorithm. Amazon algorithm.
Amazon Conversion Info
If you study the chart above, you will see that the following elements are significant in determining Amazon rankings:
- Conversion rate
- Organic sales
- Sales History
What is a Good Conversion Rate for Amazon?
It’s difficult to establish a “good” Amazon conversion rate because it varies based on the type of product you offer. The ideal conversion rate to target Amazon ranges between 10 and 15 percent.
If, for instance, you have a conversion Rate of 50%, you’ll be ecstatic, you think? If you had to study the details of this conversion correctly, it would be different.
For instance, you have 4 sessions and 2 orders. You won’t be as content unless you sell your product at an extremely high price and higher profits.
Let’s say you achieved a conversion rate of just 3%, considering that your product had three thousand sessions and 90 conversions. The figure should make your content because you have many transactions and sessions.
How Do I Calculate Amazon Conversion Rate?
Amazon conversion rate is among the most important measures for sellers as it can help you get higher rankings for your possible keyword on Amazon. When Amazon’s A10 Algorithm is considered, Conversion Rate and Speed of Sales are essential to make your business more successful.
Suppose your product descriptions begin to convert potential buyers to customers. In that case, it signals an algorithm that your product(s) that you offer is relevant to the keyword or searches terms buyers are searching for.
If your listing is converted into sales for keywords, you might be interested in, and more people view your listing, it gets a boost.
To determine your Amazon Conversion Rate, you can use the following formula
Amazon defines Conversion Rate as “The number of sales relative to the number of clicks. Conversion rate = orders/clicks.”
How Do You Keep Track of Your Conversion Rates On Amazon?
Amazon conversion tracking requires only two steps:
- Step 1: Navigate the Reports and then click Business Reports.
- Step 2: Examine the numbers of sales and traffic.
- Step 3: Find the row titled Order Session Percentage for Item. In this row, you’ll find an estimate of your rate for conversion.
- Step 4: The option that is selected combines all of the elements.
- Step 5: To access it via products, search “by ASIN” reports.
How to Enhance Amazon Conversion Rate?
Calculating your conversion rates is crucial to know how your company is doing on a sales level. This can influence your decision-making regarding the online sales business you run.
If you think some pitfalls could be avoided, Follow these suggestions to increase your conversion rate:
Conduct keyword research
When you calculate your conversion rates, If the results indicate good traffic, you can bring more clicks to your product listing.
The most effective way to accomplish this is through keyword research. The ranking of your products against related keyword phrases or search terms in Amazon SERPs. Amazon SERPs (Search Engine Result Pages) increase three things:
- Visibility
- Traffic
- Sales
When you have picked the most appropriate terms for the product you are selling, The second step would be to incorporate the keywords into:
- Product Title
- Bullet points
- Product Description
You can also utilize this Keyword Research tool to find keywords you could choose for your listing.
Create compelling product descriptions
In many cases, the descriptions for your products are often among the least thought-of aspects when improving your listings. Be aware that a prospective buyer will go through this section before choosing.
Therefore, your description of the product must include the following:
- Easy to read and comprehend
- The design is attractive enough to warrant the sale
- The information is detailed and informative regarding the product
Benefits of Affinity-oriented Bullet Points
Bullet points can ease the reading process and aid buyers in identifying the product’s most important features. Be careful not to include too many bullet points. Experts say that 5 should be an appropriate number for an outline of bullet points.
It is crucial to conclude your bullet points by introducing a clear CTA (call-to-action) (i.e., Buy Now, Order Today, etc. ).
Make use of high-quality images.
It is the first thing the buyer is looking for when they arrive at your page. If this isn’t appealing, the buyer is unlikely to look through other components (bullet details, bullet points of the product, FAQs or any other. ).
Check that the images on your products include:
- High-end
- Clear White Background
Whatever amazing your product is, if you aren’t able to keep it looking appealing, you’ve lost.
Recommendation guide: Amazon Product Photography
Maintain your price as effectively
One of the best ways to improve your listing of products is to determine competitive prices. First, check your competitors’ prices. Ultimately, it’s not wise to maintain an amount lower than the competition. It’s due to two reasons:
- Cheap doesn’t suggest quality
- Profit is more important than conversions, but sometimes
When determining the price while determining the price, do AB tests to determine what works. You can try running a sale or offering discounts to increase sales.
Follow-up emails
Once a consumer buys your product, you should nurture that relationship. They’re the perfect resources to market your product to those who purchased it and then used it.
Thus, they could open an avenue for promotion. However, don’t overburden them with email. Make sure to do it to show you care deeply about them.
Send an easy email after the purchase and determine if they are satisfied with it. Inform them that you are willing to answer any questions or concerns. Please include your email address to allow them to submit feedback or reviews from their experience.
In addition, it would be beneficial to include a coupon code in the email since this can encourage customers to make a second purchase.
Conclusion On Amazon conversion rate 2022
Your Amazon conversion rate is important because it reflects how many of your page visitors are purchasing your product on Amazon. It also helps Amazon Seller listing rank higher, making you gain more visitors in the long run.
There are many things you can do to improve your conversion rate. We’ve discussed some of them in this article, but there are more that you can try out.