Amazon Conversion Rate

Definition: What is the Conversion Rate on Amazon?

The Conversion Rate (CVR) is a crucial metric in e-commerce that indicates how effectively an online store converts visitors into paying customers. On Amazon, the Conversion Rate measures the ratio of page views for a specific product to the actual purchases of that product.

What does the Conversion Rate on Amazon tell us?

The Conversion Rate reflects the effectiveness of your listing: a high Conversion Rate indicates that a large percentage of page visitors actually become customers. Meaningful content can contribute to improving the CVR as it provides customers with all the necessary information to make a purchase.

On the other hand, a low Conversion Rate indicates that users have viewed the product while shopping but have not made a purchase. This suggests that there may be room for improvement in your listing. The price may not be right, the product images may not be appealing enough, or the product description may be inadequate.

In any case, the Conversion Rate usually refers to the same thing: the ratio of clicks to achieved conversions (also known as conversions) – the likelihood that a click will result in a sale (or an order).

Why is a high Conversion Rate important for Amazon sellers?

A high CVR is essential for improving visibility on Amazon. When a seller performs well (i.e., has a high Conversion Rate), the Amazon algorithm rewards them by ranking their products higher in search results. This leads to more traffic on the product page and ultimately more sales.

How do you calculate the Conversion Rate on Amazon?

Calculating the Conversion Rate is simple: you take the total number of sales (conversions) of a product and divide it by the total number of page views (clicks/sessions) of the product page. Then, multiply the result by 100 to get the percentage.

The number of sales is divided by the number of website visitors and multiplied by 100. Conversion Rate (%) = (Total number of sales / Total number of page views) * 100

Example: In the last month, your product page received 2200 views, and you made 220 sales. Your Conversion Rate would be: (220/2200) * 100 = 10%

The required numbers for your calculation can be found in the Amazon Seller Central under “Reports” and “Business Reports.” There, you can view both conversions and clicks for a specific period and calculate your Conversion Rate.

What is the average Conversion Rate on Amazon?

According to industry statistics, the average Conversion Rate on Amazon ranges between 10% and 15%. Note: This average can naturally vary and be lower depending on the product category.

How can you improve the Conversion Rate on Amazon?

Optimizing the CVR is an ongoing task that requires targeted actions. Here are some tips to improve your Conversion Rate:

1)Optimize your product listing:

An attractive and informative listing is the first step in optimizing the Conversion Rate. It starts with a compelling product title that clearly and precisely describes what the product is. The product description should be detailed and include all important information and benefits of the product. Good product images are equally crucial. Pay attention to the quality of your product images and show the product from different angles and in action to convey to the customer how it works and what it’s good for.

Find more tips on how to optimize your listings here.

2) Encourage positive reviews:

Good reviews play an incredibly important role in purchase decisions. They provide potential buyers with security and trust, especially when they are plentiful and positive. Positive reviews can strengthen trust in your product and increase the Conversion Rate. Actively encourage your customers to leave reviews. Also, respond promptly to negative feedback to address any issues early. A negative review can weigh as much as 10 positive ones and deter potential customers.

3) Offer fast and affordable shipping:

Amazon customers are accustomed to fast delivery times and low shipping costs. If you meet these expectations, the likelihood of customers buying from you is higher. Under certain circumstances, many Amazon users are even willing to pay more if they can be sure of quick delivery. A free and fast shipping offer (Amazon Prime) would be ideal and can also have a positive impact on your Conversion Rate.

4) Provide a fair product price:

Price is often the decisive factor for Amazon customers’ purchases and directly influences the CVR. Offer your product at a fair and competitive price without significantly reducing your profit margin. Where do your competitors’ prices stand?

5) Utilize Amazon PPC (Pay-per-click) campaigns:

Amazon Pay-Per-Click (PPC) is an effective method to gain more visibility for your products. By strategically placing ads on targeted keywords, you can drive more traffic to your listing and increase the Conversion Rate. Learn more about the basics of keyword targeting and Amazon Sponsored Products here.

6) Ensure outstanding customer service:

Good customer service can strengthen customer trust and encourage them to buy from you. Make sure to respond to inquiries promptly and professionally and be ready to help with any problems.

Regularly review the mentioned points and continuously optimize your strategies in these areas! You can always do better. 😊

Conclusion

The Conversion Rate is one of the most important metrics for Amazon sellers. It shows how effectively you convert potential customers into paying customers. By optimizing your product listings, Amazon PPC campaigns, and overall marketing strategy, you can significantly improve your Conversion Rate and visibility, thereby increasing the success of your products. So, what are you waiting for? Get to work!

Need help optimizing your Conversion Rate?

We at Ama-X, as marketing agency for Amazon, are always here for you.

Contact us today!