Statistics don’t lie! Every month, almost 50 percent of shoppers in the U.S. make a purchase on Amazon. With more than one million other small-to-midsize businesses (SMBs) on the platform, it’s becoming a difficult challenge for many businesses to capture those sales.
Often sellers fall in many traps tackling this situation. Like for instance, the merchant has put all his/her efforts in the quality of the product and even kept in mind the requirements that would attract the targeted audience.
But, the results don’t match with the hard work he/she did. Meaning, the sales numbers are low. Sadly, this leads to losing confidence on the product and questioning yourself about the product, wondering if it’s great after all.
But one has to find the root cause before coming to any decision. Yes, sometimes it may be that the product needs more improvements to survive in the market. And on the other side of the coin,NO it might not be the reason at all.
It’s important to examine your Amazon Conversion rates as it plays a vital role in driving revenue for your product. It is a significant metric that every retailer should be expert in because it measures your success on Amazon.(That’s right folks!)
The one major online retail site that sellers are eager to have a presence on, and as one of the most visited websites in the world, Amazon Marketplace offers great exposure to 12 markets around the globe. So obviously, the first best step a vendor can take here is to sell on Amazon.
When you are done with setting your brand on Amazon, you would be keen to unveil the tactics and secrets to boost your sales on Amazon. Hence moving forward, this article will explain in detail the questions that might be juggling in your head right now: “What is Amazon Conversion rates and what does it tell you about your products?”; “How can I optimize my Conversion rates on Amazon?” and “What is a good Amazon conversion rate?”
Without further ado, let’s get started..
What is CVR and how is it calculated?
CVR is an abbreviation of Conversion Rate. The conversion rate is the measure of what number of people got attracted and persuaded by advertising to take a particular action – such as Clicking the ‘View pricing’ link, Adding a product to the cart, Watching an explainer video, Clicking the “about us” page and purchasing an item.
Want to know:- Importance of Click Through Rate CTR and Conversion Rate CVR
It’s pretty simple to calculate CVR, you just need to divide the number of people who converted by the number of people who clicked on the ad, then multiply that number by 100 to give you the percentage.
On Amazon, your conversion rate measures how many buyers who visited your product listing ended up completing the action you want them to—in this scenario, making a purchase.
Conversion rate = Orders ÷ Page Views
Conversion rate is crucial to ranking high on Amazon…
Conversion Rates on Amazon v/s other E-commerce sites
An Amazon seller is already on the winning side of the team as Amazon conversion rates, by default, are great. In comparison to other e-commerce sites, average amazon conversion rates are higher.
A study showed that the average conversion rate for the top 500 online retailers was 3.32%. The average conversion rate on Amazon was 13% for consumers who do not have a Prime membership. And Prime members converted at a whopping 74%!(Unbelievable Right)
NOTE: However, it’s important to realize that these numbers are averages, and one should review their conversion rate according to the context that best suits them.
What is a Good Conversion Rate on Amazon?
When it comes to determining a good conversion rate, it can be difficult as there are many aspects to look in it. It can vary according to type of dataset and which products you are selling.
On an average, a good conversion rate on amazon can be between 10-15%. However, don’t just start jumping in excitement when such numbers show up without examining the scenario properly as things can turn out differently.
To exemplify, if you had 4 sessions & 2 orders(conversion rate is 50%). You wouldn’t be that happy unless you are selling your products for an extremely high price and greater profit margins.
On the contrary, let’s say that you had a conversion rate of only 3%, given that your products had 3,000 sessions & 90 conversions. Now, this figure will keep you happy because you had a great number of sessions and sales.
How to Boost your Amazon Conversion Rates?
- MAKE YOUR PRODUCTS PRIME ELIGIBLE AND JOIN FBA BY AMAZON
Free and discounted shipping is an essential factor a buyer will look for. They will opt for a seller who is offering Prime shipping. Amazon features more than 100 million Amazon Prime members, and any shopper will love to use their Amazon Prime benefits, including free two-day shipping.
Now, how do your products become Amazon Prime eligible is what you might be thinking about. To ensure you capture a larger portion of shoppers on Amazon and gain benefits of Amazon Prime, consider joining Fulfillment by Amazon (FBA). This service, which includes fulfillment and storage fees, shifts all order fulfillment and return responsibilities to Amazon.
Advantage-This expansion will contribute in enhancement of page views, purchases, and revenue. Thus, the pro tip here is, increase your conversion rates quickly and easily simply by signing up for FBA (Fulfillment by Amazon). Your products will show as Prime-eligible and therefore, perceived as more trustworthy and secure.
- FIND THE RIGHT PRICE
What one can do is lower the price of the product they are selling. It is a common tragedy faced by merchants that shoppers click an ad finding the exact product they need but fail to make a purchase because the price is too high compared to other similar products.
If a business charges too much or too little for their products, it can serve as a negative signal. So what’s the solution? When setting your price, look at your competitors and see how they’re pricing their products. If their product is similar to yours, consider testing the waters with a price that’s similar as well. Keep in mind that you have to be turning a profit, so don’t go too low.
After that, keep monitoring your Amazon Conversion rates and make decisions wisely!
- SHOWCASE HIGH-QUALITY PRODUCT IMAGES
Yes it’s true, one can’t judge a book by its cover, but shoppers on Amazon definitely can. The right product images can certainly sway people into buying from you over a competitor. In fact, 67% of consumers cite high-quality images as the biggest influence when purchasing a product.
Here are some tips to ensure you product images gives a better first impression:
- Use large images to enable zoom
- Showcase every side of your product
- Make your main image pop
- Show your product being used
Pro tip : If your company invests in professional product images, make sure they adhere to Amazon standards.
- GIVE LIMELIGHT TO YOUR PRODUCT’S BENEFITS
Once you successfully complete the tactic number three as above, you will need to focus on this one. That is, a great product image can get customers on your listing, but a well-written description can help them decide it’s time to buy your product. Precisely speaking, with 85% of shoppers doing research online before buying a product, having an accurate description can make or break a sale!
The description include:
- Relevant information
- Answer to how the shopper can resolve a problem or have an advantage of using your product
- Highlight important features
- Also, answer to commonly asked question regarding the product
- OPTIMIZE YOUR PRODUCT LISTINGS USING SEO
The importance of this point can’t be overstated. This is the practice of ensuring your text is written in such a way that it’s more likely to show up when searched for.
Amazon SEO helps improve the visibility of your products in search results on Amazon. For example, if someone searches for a “dining set” and that’s what your company sells, it would make sense that you’d want your product to appear in that search result right.
And What difference does it make if it’s on the first or second page? Well, research shows that 70 percent of shoppers on Amazon do not go past the first page of search results.
Here are some best practices a merchant on Amazon can implement to help their products show up more frequently when people search for similar terms on Amazon:
- Add your brand to the product title, if the name isn’t too long
- Put your key term in the product title, that is keywords associated to your product
- Utilize Amazon’s Backend Keywords
- Fill in as many IMP details as possible, such as dimensions, material, and more
- TRACK WHEN YOU EARN AMAZON BADGES
If a seller follows all the above tactics, they can clearly earn an “Amazon’s Choice” or “Best Seller” badge. These badges go beyond prestige, and can actually lead to an increase in conversions, according to a study. A part of the reason these badges can help with your conversion is due to Alexa. When shoppers use Alexa’s voice functionality to order a product, Alexa will prioritize products tagged with “Amazon’s Choice,” which increases the likelihood someone buys a product with that badge.
Knowledge is Power ,and as you have enlightened yourself with all the above information now go and “Get Shoppers to Click On Buy Now”…
Wait a second though! Here this out..
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