More visitors to our listing is a good thing, but getting the right visitors is more important than simply having more people look at our pages without taking any action.
How many of the hundreds or thousands of people who click on your listing actually buy? It is far preferable to have only 5 visitors per day, all of whom make a purchase, than to have 1,000 visitors per day, only two of whom make a purchase.
It's one thing to get traffic. It's another matter to get the right traffic.
If you welcome all types of traffic, there's a chance your conversion rate will suffer, and your ranking will suffer as a result.
This post will explain what conversion rates are, why they are important, and how you can improve them for little or no money.
What Is Conversion Rate?
The conversion rate can indicate a variety of things depending on the action you want users to take.
Divide the number of people who visit your site by the number of people who subscribe to your newsletter to calculate the conversion rate for email subscriptions, for example.
Amazon uses the conversion rate to determine the number of page visits that result in a sale.
This is a critical metric for several reasons:
It gives you a high-level overview of the health of your listings.
It raises the ranking of your product.
It aids you in evaluating the results of your listing copy A/B testing.
It aids you in determining which areas require improvement.
However, a high conversion rate does not always imply that your product is performing well. Remember that one visitor who buys your product equals a 100% conversion rate. As a result, rather than looking at the percentage, it is still necessary to look at the actual figures.
Conversion rates for sites that sell a product or service are typically in the 1 to 2% range. However, when it comes to Amazon, this figure is significantly higher.
On average, Amazon listings convert at a rate of 10% to 15%. Prime members had a higher percentage, more than 74%. This is because many Amazon customers are already planning to buy something, if not right away, then soon.
This is another reason why so many eCommerce retailers use Amazon as one of their platforms for selling items.
The most important reason to track conversion rates, however, is that it is one of the factors that propels your listings to the top of search results. Amazon's A9 algorithm uses conversion rates and sales velocity to rank listings.
As a result, if your listing has a low conversion rate, it is less likely that your product will appear on the first page of Amazon search results.
How To Calculate Conversion Rate?
Conversion rate = (Total Conversion) / Total Clicks
The average conversion rate on Amazon is 9.87%. Of course, as with any measurement, these averages vary greatly depending on the specialization.
Customers want to shop around and compare products before making a purchase decision, so more expensive products ($100+) often have lower conversion rates.
Aside from Amazon, the average eCommerce conversion rate is approximately 1.33%. This translates to a 9.89% average Amazon PPC conversion rate, demonstrating the effectiveness of Amazon advertisements. These are the bottom-of-the-funnel prospects who are eager to buy.
Conversion Rates In Context:
Although conversion rate is an important statistic in its own, it is also critical to understand the factors that influence it:
When time frames and sample sizes are extended, conversion rates become more accurate. After all, having more information is always better.
Strong and numerous competition reduces conversion rates because clients have more excellent options to choose from.
Profit comes first. It makes no difference how high your conversion rate is if you're not making any money. Always ensure that increased conversion rates generate enough revenue to cover any costs.
What Is A Good Conversion Rate For Amazon?
It's difficult to define a "good" Amazon conversion rate because it varies depending on the products you sell. A reasonable conversion rate on Amazon should be between 10% and 15% on average.
For instance, if your conversion rate is 50%, you'll be overjoyed, right? If you thoroughly examined the data from this conversion, the situation would be different.
Assume you have two orders and four sessions. You won't be happy unless you sell your items at a high price with a large profit margin.
Assume you have a 3% conversion rate for your products based on 3,000 sessions and 90 conversions. This statistic will please you because you had a large number of sessions and sales.
How Can You Monitor Your Amazon Conversion Rates?
Tracking Amazon conversions requires only a few steps:
Step 1: From the Reports menu, select Business Reports.
Step 2: Look over the sales and traffic figures.
Step 3: Find the Order Item Session Percentage column. Here you will see your conversion rate.
Step 4: Combine all of the elements in this option.
Step 5: Look for reports that say "by ASIN" to get it by product.
Causes For Low Conversion Rate
If your conversion rate is lower than average, it's likely that your listing, ad campaign, or both require some attention, and there are several factors to consider.
1. Listing optimization
Product listings that are unappealing or unclear are a common cause of low conversion rates. Customers may be unsure about your product because your main image is grainy or your image stack only contains one or two photos. You may have an unclear or insufficiently specific title or a product description that is insufficiently detailed. If a buyer visits your page and is unsure what they will get from your offering, they may decide to shop elsewhere.
On the other hand, perhaps your product description is buried in long words. Customers are unlikely to browse through a listing if it is not simple to understand and detailed enough to gain their trust in the goods. As a result, they are unlikely to make a purchase. Improving your listing's conversion rate could be game changer.
2. Reviews
Another factor that contributes to low conversion rates is poor or insufficient reviews. When customers see a product with only three stars or critical reviews that have gone unanswered by the seller, they will be suspicious that they will have a bad experience with your products.
3. Price
Another thing to consider is pricing. If your product is overpriced, or even underpriced, you are less likely to sell it. If the price is too high, buyers will look for cheaper alternatives; if the price is too low, you may be communicating a lower level of quality. To convert, your prices must be kept low.
4. Advertising
Listings are one area where your conversion may be suffering. Advertising campaigns are another example. It's possible that you're bidding on the wrong or overly broad keywords. If you're selling a crossbody women's purse, but you're bidding on "women's purse" instead of "crossbody women's purse," your item will get lost in the flood of results, and your conversion rate will suffer because it isn't precise enough for your goods. You'll also waste money on advertising that could be spent on more profitable keywords.
How Can You Improve Your Amazon Advertising Conversion Rate?
Improving your conversion rate benefits every aspect of your business, both directly and indirectly. When your conversion rate is high, it means your product is not only popular, but Amazon algorithms will reward your brand by ranking your listing higher in search results, resulting in even more sales.
To increase your conversion rate, you should focus on making the shopping experience as straightforward and simple as possible for Amazon shoppers with high intent to purchase. Here are a few possibilities.
1. Optimize your listings.
We've already discussed it, but the appearance of your listing is critical to how well it converts. Because the main image, title, and price are the first things a buyer sees while scrolling through a list of products, they must be flawless.
Aside from that, picture stacks are critical, especially as more people buy on their phones. When a consumer clicks on a listing on a mobile device, the first thing they see is your picture stack, and if they scroll just a little further, they find the buy box—there is no listing description or A+ content on the site.
And it's not just about having an image stack—because this could be the first thing a buyer sees, you'll want to make it a meaningful image stack with high-quality photos and, in some cases, instructional graphics that can help a shopper learn how to use your product. The faster a customer understands what they're purchasing, the higher your conversion rate.
Your photographs should not only show the goods, but they should also sell them. Use your photos to highlight appealing features, demonstrate how your product works, incorporate positive customer feedback into your visuals, respond to FAQs, and so on. You want people to understand the problems that your product can solve simply by looking at a picture of it in action.
However, just because the image stacks appear first on mobile doesn't mean the description should be ignored. Customers using mobile devices will need to scroll for more information, whereas desktop users will see the description right away. Make sure the information you present in the description is simple to understand (easy to skim is even better) (easy to skim is even better). It is best to use bullet points to expand on the information in the picture stacks.
Your copy should be concise, engaging, and informative so that customers can quickly understand who you are as a company and what your product can do for them.
2. Offer Discounts:
Buyers are much more likely to purchase a product when they realize they are getting a great deal on it. Obviously, you won't want to offer discounts all of the time, but a special offer on a product every now and then will help increase conversions. It helps you stay competitive and noticeable.
3. Improve Customer Experience:
Higher conversion rates are more likely for businesses that provide memorable purchasing experiences to their customers, whether through shipping, packing, email campaigns, or customer service. They establish trust and generate excitement for their brand to build loyalty, and a loyal customer base is a customer base that converts.
4. Create an Omnichannel Sales Funnel:
Another method for increasing conversion rates is to redirect sales from other channels, such as Facebook or Instagram, to a landing page that directs visitors to your Amazon listing. This enables visitors to gain a better understanding of your product before visiting your listing to buy it. If they like what they see on your landing page and click through to your listing, they are very likely to convert. It takes a little more work, but it's a strategy for attracting high-intent buyers.
5. Leverage reviews:
When a shopper visits a listing, one of the reasons they don't buy something is that there isn't enough social proof to convince them that it's a good idea. As a strategy to address this, include prominent buyer reviews in your material or be aggressive in responding to negative reviews. This will allay your prospective buyers' concerns and give them confidence that they will have a positive experience.
Amazon's badges on products can provide additional social proof: Amazon's Choice, Best Seller, Climate Pledge Friendly, and other banners are just a few examples of banners that can increase trust in your offering.
Conclusion
Your Amazon conversion rate not only shows how many of your page visitors buy your product, but it also shows how much money you make. It also raises the ranking of your listing, resulting in more visits over time.
There are several ways to increase your conversion rate. I've mentioned a few of them in this article, but there are plenty more.
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