Mastering Amazon Conversion Rate: A Comprehensive Guide

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Ecommerce is big business. This is especially true if you’re an active seller on Amazon who’s shipping products here, there, and everywhere. Even if you’ve built your own online store using a website builder, selling on Amazon can be very lucrative. But when it comes to understanding if your products are performing at a high level, you’ll need to know all about conversion rates.

Worry not, because this comprehensive guide has everything you need to know about mastering Amazon conversion rates. So, get ready, load up your products, and sell with conversion rate clarity.

What Is a Conversion Rate, and Why Is It Important?

A conversion rate is the percentage of browsers who visit your online store and perform an action, like making a purchase. It’s an important metric that showcases how well your business performs and whether your marketing strategies are paying off.

If you’re selling on Amazon, understanding your conversion rate offers valuable insights into customer behavior and their shopping preferences. A high conversion rate typically indicates that your products are popular and provide a benefit for customers.

A low conversion rate, however, might signal that there are barriers preventing potential customers from completing a purchase. This could be due to unclear product descriptions or uncompetitive pricing.

Monitoring and optimizing your conversion rate will help you make informed decisions that enhance product performance and lead to increased sales and customer satisfaction. Checking over this metric will also help you identify trends, adapt to changing consumer needs, and stay ahead of competitors in the ever-evolving ecommerce landscape.

Good to know: Amazon Prime members boast a conversion rate of 74%, while non-prime members typically convert at 13%.

How To Calculate Amazon Conversion Rates

Knowing the conversion rate of your Amazon products gives you a better understanding of your listings and how they’re performing. Having the conversion rate to hand offers a snapshot of how effective a product is at persuading visitors to make a purchase.

What Is the Conversion Rate Formula?

So how do you calculate conversion rates for your Amazon products? It’s not as difficult as you might think and requires a fairly straightforward calculation.

Use the following formula to get the right conversion rate:

Conversion rate = (number of sales/number of visitors) × 100

For instance, imagine you’re selling a unique coffee mug on Amazon. Over the course of one day:

  • 100 different people view your product listing (number of visitors).
  • 10 of those people decide to purchase your mug (number of sales).

This means that for every 100 people who viewed your coffee mug that day, 10 of them made a purchase. That’s a conversion rate of 10%.

Reminder: The conversion rate formula is the number of sales divided by the number of visitors times 100. 

How To Track Your Conversion Rates on Amazon

It’s one thing knowing how to do the math on Amazon conversion rates, but what about tracking them? To track your conversion rates on Amazon, you’ll need to use the Amazon Seller Central platform:

  • Log in to your Amazon Seller Central account.
  • Navigate to the “Reports” tab.
  • Select “Business Reports”.
  • Under the “Sales Dashboard”, you’ll find the ‘Unit Session Percentage’, which represents your conversion rate.

Once you’ve done this, you’ll be able to keep track of the conversion rates for all of your listings and use the data available to make informed decisions about products for sale.

Top tip: It’s best to break your tracking down into daily, weekly, monthly, quarterly, and annual chunks. This way, you get an idea of sales on both a smaller and larger scale.

What Is a Good Conversion Rate on Amazon?

A good conversion rate comes down to the type of products you sell and where you sell them. Achieving a conversion rate on Amazon that’s higher than the average points to success, but what exactly is that all-important average?

The average conversion rate for Amazon listings comes in between 10-15%. The figure isn’t static, however. It may fluctuate considerably based on several influencing factors, such as the product category.

Let’s take niche products with a dedicated customer base. This product might experience higher conversion rates compared to more common items popular with a broader audience.

The level of competition also plays a central role. Products in saturated markets – where numerous sellers offer similar items – might find it challenging to maintain high conversion rates. Additionally, other external factors, such as seasonal demand, customer reviews, and promotional activities can all have an impact on conversion rate.

Bear in mind that while aiming for a rate above the average is commendable, it doesn’t necessarily tell the entire story, and you need to understand the context in order to navigate the myriad of factors that influence such a key metric.

Factors That Impact Conversion Rates

Look out for these important factors that can impact conversion rates on Amazon, from providing detailed descriptions to performing the right market research for your audience.

The Quality of Your Product Listing

Amazon product
Amazon’s official listing for one of its products goes into depth, with a video, multiple pictures (including instructions on images).
  • Detailed product descriptions provide comprehensive information about the product’s features and benefits, giving shoppers more insight into your offering.
  • Clear visuals can help your products stand out, so make sure images are high-resolution, and videos showcase the product from multiple angles.
  • A user-friendly format is also beneficial, with an organized and easy-to-read listing enhancing the user experience.

Keyword Choice

  • Selecting keywords that are relevant means potential buyers are more likely to find what they’re looking for.
  • The search volume is also important, and you should target high-ranking keywords that have a significant number of searches.
  • Avoid keyword stuffing and ensure the content sounds natural without being overly repetitive.

Relevance of Your Product to Your Target Audience

Product description title
This listing includes the age within its product description so shoppers are clear from the start.
  • Use market research to understand the preferences and needs of potential shoppers.
  • Regular product updates keep things fresh and show you’re using customer feedback to provide the best possible solution.
  • Be expressive with your product descriptions and capture the imagination by showing how they solve the customer’s pain point.
  • Consider using video guides to show people how the product works in real-time.

Competition for Your Product

  • Think about the unique selling proposition (USP) and highlight what sets your product apart from others.
  • Market positioning is also necessary because it allows you to strategically place your product in a niche or segment with less competition.

Reviews

Reviews
Customer reviews for a product sold on Amazon of four stars or higher help boost the authenticity of your product.
  • It’s all about the quantity, with a higher number of good reviews helping boost credibility.
  • Of course, the quality matters too– positive reviews can significantly influence purchasing decisions.
  • Respond to feedback by engaging with customer reviews, both positive and negative.

Want to increase the number of reviews customers leave about your products? Check out our top tips on how to ask customers for reviews.

10 Tips To Increase Your Conversion Rate on Amazon

Use these 10 tips to improve your chances when selling products on Amazon and become a five-star seller who caters to the needs of their customers.

  1. Use clear and concise language in your product listing. Avoid jargon and be straightforward.
  2. Use high-quality images and videos. Visuals can greatly influence a buyer’s decision.
  3. Set a competitive price. Research similar products and price yours competitively.
  4. Sign up for Fulfillment by Amazon. This can enhance the buyer’s trust in your product.
  5. Target your product to the right audience. Ensure your marketing efforts reach the right people.
  6. Run effective Amazon marketing campaigns. Use Amazon’s advertising tools to boost visibility and get your products in front of shoppers.
  7. Optimize your product for search. Ensure your product appears in relevant searches by using the right keywords and descriptions.
  8. Write a detailed product description. Answer potential questions buyers might have.
  9. Respond to customer reviews promptly. This shows you value customer feedback and welcome insights from shoppers.
  10. Improve your products. Continuously seek feedback and make necessary tweaks to products to make them more appealing to customers.

Find Out More

Summary: Winning at Amazon

It’s 2024, and understanding and optimizing your Amazon conversion rate has never been so important. If you have all the data and insights, you can get the lowdown on Amazon conversion rates and make smarter decisions about your products to maximize sales and growth.

Written by:
simon banks headshot
I joined the Website Builder Expert writing team in 2023. With a decade of writing experience, I really love helping brands and small businesses, with a talent for making seemingly dull topics fun and engaging. My aim is to get you feeling confident about marketing your business so it can achieve success. Having a background in advertising has given me a unique lens through which to view topics. I love turning tricky subjects – like website security certificates and crafting a customer journey map – into easy-to-understand pieces of content that capture attention whether you're reading at home or browsing while out and about.

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