Here is a guide on how to calculate Amazon conversion rate and how to optimize it!

In addition, sellers should know that conversions do not happen naturally. You must optimize your product pages for conversions to occur. So how can Amazon sellers increase their product conversion rates?

What is Amazon Conversion Rate?

According to data from Millward Brown Digital, a well-known website traffic statistics company, the conversion rate of Amazon Prime members is 74%, while the conversion rate of non-Prime members is usually 13%. This figure far exceeds the top 500 e-commerce platforms. No wonder Amazon Prime is so successful. Simply put, the reason why the conversion rate of Prime membership program is higher than the average is due to its consumer-centric convenience service.

Amazon Prime is one of the biggest drivers of the company’s success. Prime members get:

Free 2-day delivery service;

Access to movies and TV shows;

Listen to streaming music for free;

· Read e-books for free.

With an annual fee of only $99, Prime membership service is indeed attracting many consumers and has brought the number of Prime members to new heights.

In 2015, Amazon was ranked #2 among global e-commerce retailers, and Alibaba was #1. However, Amazon reclaimed the top spot by announcing and hyping its “Prime Day” promotion. Amazon’s conversion rate is astounding compared to other competitors in North America.

According to Millward Brown Digital, among the top 500 e-commerce retailers, Amazon Prime membership conversion rate is 74%, while the average conversion rate of other e-commerce retailers is 3.32%.

Surprisingly, even Amazon’s non-Prime members still have a much higher conversion rate than the average, at 13%. This is almost 4 times the average conversion rate.

What is e-commerce conversion rate?

Conversion rate is the percentage of visitors who visit your landing page or product page and complete the desired action.

When it comes to eCommerce conversion rate, it is the percentage of visitors to a website who purchase something from an eCommerce store within a specific time. However, this metric is not the only way to check the success rate of your online store. There are a few other ways to check the conversions of any eCommerce website, which include:

• Shoppers add products to their carts;

• Shoppers add products to their wish list;

• Shoppers purchase products or generate sales;

• Share the product on social media;

• Subscribe to email newsletters;

• Any desired KPIs (Key Performance Indicators) that are valuable to your business.

"Conversion" is a broad topic because it encompasses so many things. It includes every factor that affects the user experience of your website. Conversion rate optimization (CRO), on the other hand, is the way to enhance the shopping experience and drive sales. Conversion rate optimization can be implemented on category pages, landing pages, product pages, or anywhere a buyer can reach.

What is a good e-commerce conversion rate?

The average e-commerce conversion rate is 1% to 2%. Although you can probably win 2% of sales if you optimize correctly, a conversion rate of more than 2% must be the foundation of your e-commerce business.

Keep in mind that conversion rates vary between countries, categories, devices, seasons, etc. Therefore, it is crucial to set your KPIs based on the average conversion rate for your industry. Also, you must always be careful when comparing yourself to your competitors. For example, Amazon’s average conversion rate is 13%, which is about 7 times the industry average.

Amazon’s A9 Algorithm

The products you sell are ranked based on various factors, which is the uniqueness of Amazon’s algorithm A9. In short, products on the Amazon platform are ranked based on two important metrics:

• Relevance;

• Popularity.

According to James from InternetBizUni, an Amazon training organization, there are many ranking factors in the Amazon A9 algorithm, as shown in the figure below:

If you look closely at the chart above, you’ll notice that the following factors have a huge impact in determining Amazon rankings:

• Conversion rate;

• organic sales;

• Sales history.

What is a good Amazon conversion rate?

It’s hard to pinpoint what a “good” Amazon conversion rate is because it varies based on the category you sell in. On average, a good Amazon conversion rate target is between 10% and 15%. But different data sets can mean different things.

For example, if your conversion rate is 50%, then you’re going to jump for joy, right? However, if you look at this conversion data, the end result will be different. Let’s say, if you have 4 page visits and 2 orders. Unless you’re selling products at extremely high prices and extremely high profit margins, you’re not going to be that happy.

Let’s say your product has 3,000 page views and 90 conversions, then your conversion rate is only 3%. But this number will make you happy because you have a lot of page views and product orders.

How to Calculate Amazon Conversion Rate?

Amazon conversion rate is one of the key metrics for sellers because it allows potential keywords to rank higher on Amazon. As far as the Amazon A9 algorithm is concerned, conversion rate and sales velocity are important factors in making your business successful.

When your product listing starts converting visitors into buyers, it means that the products you sell are relevant to the keywords or search terms that customers are searching for.

When your listings convert into potential keyword sales, your product visibility will also increase.

To calculate your Amazon conversion rate, use this formula:

Conversion rate = (total number of orders) / (total number of visits to the product listing)

You can even view your conversion rate on Amazon by clicking View Metrics and then looking for “Unit Session Percentage.” This option shows “the ratio of sales to the number of views of your product by potential buyers.”

How to Track Your Conversion Rate on Amazon?

Amazon conversion tracking involves only a few steps:

Step 1: Navigate to Reports and then click Business Reports.

Step 2: Check sales and traffic;

Step 3: Find Order Item Session Percentage, where you can get the conversion rate;

Step 4: This option combines all products together;

Step 5: If you want to get by product, press “by ASIN” to view the report.

How to increase Amazon conversion rate?

Calculating your conversion rate is important for understanding your business’ sales performance, which can influence the decisions you make for your e-commerce business. If you think you may be flawed, follow these steps to optimize your conversion rate:

When calculating your conversion rate, if the results show good traffic, the next step is to generate higher click-through rates for your product listings. The best way to achieve this is to perform keyword research. There are three factors that influence ranking for relevant search terms or keywords on the Amazon search engine results page:

• visibility;

• flow;

• Sales.

After choosing the right keywords for your product, the next step is to add the keywords to:

• Product listing title;

• Five points of description;

• Product Description.

Sellers can use some tools to conduct keyword research. Sellers can check the .com keyword tool section:

Often, your product description is the most overlooked piece when optimizing your listing, but you need to know that potential buyers will carefully read your product and make a decision whether or not to purchase it.

Therefore, your product description should:

• Easy to read and understand;

• Be attractive enough to drive product sales;

• There is detailed and useful information about the product.

The five bullet points can simplify the reading process and help buyers identify the key features of the product, but don't include too many points. According to experts, creating a 5-point feature description is the most effective. Finally, don't forget to end your five-point description with a CTA (call to action), which is very important and direct (such as Buy Now, Order Today, etc.).

This is the first thing a buyer will look for when viewing your product listing. Unless the images are attractive, he or she will never look at the other elements (bullet points, product description, product details, FAQ, etc.).

Sellers should ensure that your product images:

• high quality;

• The picture is clear and uses a white background;

No matter how good your product is, if you can’t maintain appeal, then you’ve failed.

A good way to optimize your product listing is to set competitive prices. First, check your competitors’ prices. Now, keeping your prices lower than your competitors is not a good idea. This is due to two reasons:

• The quality of cheap products may not be guaranteed;

• Sometimes profit is more important than conversions.

While you’re finalizing your price, run A/B tests and see what actually works, try offering discounts to boost sales.

The moment a buyer purchases your product, you have a connection. These buyers are the ideal audience to promote your products to because they are the ones who buy your products and use them.

So, they can pave the way for promotion. But remember don’t bombard them with emails, genuinely care about them.

Send a simple email right after they purchase the product to see if they were satisfied. Let them know you’re open to any questions and concerns. Add your email link so they can type in a review or feedback based on their experience.

Apart from this, including discount codes in the emails would be a fantastic idea as this encourages secondary purchases.

Text ✎ Mary/

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