You may think that the most important statistic is the profit – and in some ways your lifestyle is linked to the money you make. However, the Amazon conversion rate is in fact the most important metric for any eCommerce business, as it shows how well your efforts are influencing your success, or not.
Evaluating your conversion rates requires subtlety. You need to know what you are looking for and how this might influence your business decisions. But, first, you need to know where to find your conversion rate. Then, it is about understanding how to assess this and the possible pitfalls there could be.
Finding your conversion rate
To find your conversion rate you need to go to Reports and then Business Reports. You then need to look at sales and traffic. Under the row labelled Order Item Session Percentage, you will find your conversion rate. This groups all your products together. To get it by product you need to check out the same column in the “by ASIN” reports. The conversion rate is calculated by dividing the number of sales by the number of times people visited the listing.
Evaluating your conversion rate
When evaluating your conversion rate, it still needs to be assessed against the profit you are making and the number of visitors you are get to your listing. If you have an excellent conversion rate but low profit, then this rate is useless to you. It is also relative to the number of people who viewed your product. If only 4 people came to see your listing and you have a 50% conversion rate – that is only 2 sales. This is not fantastic performance. However, if you had 2000 views and only a 4% conversion rate, then you have sold 80 items. This is good performance.
So, first look to your statistics on traffic, then on conversion rate of this traffic and then how this influences sales.
How to increase Amazon conversion rate
So, if part of evaluating your conversion rate is appreciating how much traffic you achieve – then you need to draw clicks to your listings. The way to do this is to undertake keyword research – looking for the words that your users are typing in to find products like yours. You then need to integrate these keywords into the title, the bullet points and the product description.
You can use the Rank Tracking tool to monitor the rankings for keywords you are targeting in your listing.
Another way to ensure click through rates is optimizing the product listing. Optimizing means finding the exact wording and imagery to hook your reader and draw your reader towards conversion.
You can do this using split testing, which is the process of monitoring metrics to see how changes to the listing improves or lessens interest in your product. When you find a successful title, image, keyword, bullet point or product description, keep it and work on one of the other variables until you perfect the listing.
One of the most effective ways of optimizing your listing is by finding exactly the right price for your product. It is a good idea to look at your competitors’ prices. It is not enough to try to go cheaper than competitors – for two reasons – 1. cheap doesn’t always suggest quality and 2. profit is sometimes more important than conversions. When you are deciding a price, it is a good idea to undertake AB testing to see what works. You may also want to run a discount price to encourage conversions to boost sales.
Amazon Pay Per Click advertising is one of the best ways to increase conversions. It will increase your sales, as it will place your listing higher on the screen. It will appear in plain view of your customers on a prime location on the screen. Then, once your sales start to improve then your organic rankings rise as well.
Your products will appear as sponsored. These adverts are keyword-targeted and appear in search results where these keywords are used by the consumer.
This is a low-risk strategy. The seller only pays if the customer clicks on the advert that takes them to the product listing. This means you get visitors that your optimised product listing will then convert.
It is also a good idea to draw people to your listing by using other marketing techniques external to Amazon. There are many techniques you can use, including affiliate marketers, social media and re-targeting adverts.
You need to assume that there are a whole host of customers who will buy your product but may not naturally go to Amazon. Therefore, all the work you have done to optimise your listing on Amazon can go to work in producing your external marketing. Everything that you produce on social media or in external advertising should include a link to the product listing.
One way to attract customers to your product is to offer a discount price for a limited period. Remember one of the key ways that your ranking can rise is through sales. If you can promote early sales, then you can attract more customers because you become more visible to potential customers. Therefore, although you profits might be low from a promotion, the end product may be more money earned in the long run.
If you want to test out the impact of your promotion, you can run it as an AB split test with a listing that offers your product at a standard price. The metrics offered should give you an impact on both conversions but also on profits.
Use tools like AMZFinder
AMZFinder is a useful tool for improving your conversion rate. This is a tool that helps remove negative reviews from your listings. It does not just go through your reviews deleting any that would make you unhappy – Amazon would never allow this. However, there is a chance that AMZFinder can match the review to the corresponding order and send you details of the buyer. You can then formulate an email to the buyer and try to resolve the issues – all with a single click. In this way your reviewer may choose to remove the review and even change it to a positive review.
The main benefit of AMZFinder is the early identification of a problem review that could easily drag down conversions. It then gives you the tools to put the problem right without you needing to do endless research – matching usernames to sales id numbers.
The power of reviews is clearly massive. User generated content is by far the most important marketing tool – it is the new style word of mouth. You can encourage positive reviews by sending follow up emails to your customers requesting a review of your product. You may want to put together a campaign of emails that are sent out after different time periods – constantly but politely reminding your customer that you would appreciate hearing their views on your product.
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