Conversion rate is an important metric in any business. A high conversion rate means better overall margins, and a higher percentage of sales in your back pocket.
It’s especially important on a competitive e-commerce platform like Amazon. Your conversion rate on Amazon doesn’t only have an impact on your profit, it’s a key factor in organic search rankings, and as a result, overall sales.
This post will explain how we calculate Amazon conversion rate, what the average conversion rate on Amazon is, why it’s so important, and how to increase your own conversion rate.
What is conversion rate and why is it important for Amazon sellers?
Conversion rate is the ratio of sales to page views of an Amazon product listing.
Using the metrics found in Seller Central’s Business Reports, the formula is:
[Conversion rate = Orders ÷ Page Views]
Why is it important?
The first reason is that a better conversion rate means more sales. It means a higher percentage of people who find your product go on to buy, which means more sales and more profit.
Secondly, conversion rate is an organic ranking factor. A high conversion rate results in higher search rankings for your product.
“Converting on customer traffic signals to the algorithm that your product is relevant for that keyword. And being able to convert on that keyword over time will boost your product’s visibility on search engine results pages.”
So, a higher conversion rate has a direct impact on your overall traffic, too.
Increasing your conversion rate shows Amazon your product is popular, as it converts a high percentage of shoppers into customers. The Amazon search algorithm rewards you with higher organic rankings, which then leads to more traffic (and sales).
What is a good conversion rate on Amazon?
On average, a good conversion rate on Amazon is around 10-15%. This is, however, not taking into account any additional factors which may make your conversion rate acceptable or not.
Conversion rate should be analyzed in context. There are many things that should be taken into account.
Sample size, for example. Maybe you have 5 conversions out of 10 page views. That’s a 50% conversion rate, which sounds great, but you’ve only made 5 sales. In comparison, 100 conversions out of 1000 page views is a much lower conversion rate, but you’ve made a lot more revenue.
Your price point and margins also come into play. If your product is expensive or has particularly high margins, you can afford to have a lower conversion rate. In comparison, cheaper items which don’t make so much profit need to move a lot faster, hence a 10-15% conversion rate might not cut it.
Amazon conversion rates vs E-Commerce
What you should know is, Amazon conversion rates are, by default, great.
Amazon sellers are already at a large advantage for conversion rates. Amazon’s conversion rates are much higher than the average e-commerce site.
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%!
Simply put, Amazon is a powerful platform for selling online. But it’s important to realize that these numbers are averages, and you should review your conversion rate in relation to your own context.
“Is a 34.21% Conversion Rate with Amazon Good?”
Someone asked this question on Quora, and I loved the answer given by Thiago Ghilardi. He did a great job of explaining how the context of a conversion rate is just as important as the metric itself.
To be able to evaluate whether a >30% conversion rate is good, a few other things need to be considered.
- Timeframe & sample size: The longer the timeframe and the larger the sample size (more orders) means the data is more useful. You can have a 100% conversion rate one day, and then the next 29 days your conversion rate could plummet to 0%. The more data you have, the more reliable the data is – so you can draw more insight and be more confident about decisions you make based on that insight.
- Product & competition: Products in more competitive niches are naturally going to have lower conversion rates. Because customers understandably do a bit more searching on when there are more options available. So factoring this understanding into your evaluation of conversion rates is a good idea.
- Source of traffic: Is this conversion rate from organic Amazon search results, sponsored product advertisements, an email blast, Facebook Ads or a combination? This matters. You’d expect to get higher conversion rates from clicks on ads than from organic search results. Take this into consideration.
- Are you making money? Some conversions count more than others. The ticket price, acquisition costs & margins may vary quite a bit between two conversions. For each conversion, the higher the ticket price (more revenue), the lower the acquisition cost, and the higher the margins (lower costs), the more money you will make. At the end of the day, it’s about maintaining cash flow and turning a profit. Conversions should be evaluated in this context.
With this knowledge in hand, we’ll now give you four ways your can boost conversion rate on your Amazon products.
How to Improve Your Conversion Rate on Amazon, Method One: Landing Pages
A super powerful way to boost your conversion is a simple external traffic sales funnel. This sales funnel will look like this:
The key to this sales funnel improving your conversion rate is sending people to a landing page in between the original traffic source and Amazon.
Without a landing page, you’ll most likely hurt your conversion rate, rather than improve it.
As we mentioned earlier, Amazon conversion rates are much higher on average than e-commerce in general. Even more so for something like Facebook Ads, where people are not in buy-now mode by default, as they are on Amazon.
For example, let’s say you send 100 people to your product listing from Facebook Ads. The average online conversion rate is 3% (being generous here). Let’s be even more generous, and say that 5 out of these 100 convert, since Amazon is good at convincing people to buy.
If your Amazon conversion rate was 13% (the average for Amazon products), you’ve lowered your conversion rate by sending traffic from Facebook.
The solution is a landing page, which acts as a filter.
You can use your landing page to show off your product, its features, benefits, pricing, and everything customers need to know to decide whether to buy or not.
The customers make the decision right then and there, instead of going to Amazon first. That means only the people with the highest intent to buy register a page view of your product, and a significant number of these shoppers will make a purchase.
Unless there’s something really wrong with your product listing, you’re likely to get more than 13% conversions from this source, so your overall conversion rate will go up.
Landing page conversion rate tips
Just using a landing page in the first place is likely to improve your overall conversion rate. But here are some tips to make your landing page funnel even better, and get a higher volume of conversions (i.e. sales) on Amazon.
Offer a discount.
A discount makes it much more likely for someone to buy, for obvious reasons. It will also reduce the number of people who go through to your listing, but buy from a sponsored or related product. Finally, a discount code is an awesome incentive to use to capture peoples’ emails, and build a launch list.
Scarcity is a basic marketing tool, which almost any high-performing marketing team uses. Let customers know there is a limited time to buy your product, or redeem a coupon code, and more people will convert. It’s called FOMO – Fear Of Missing Out.
Add an FAQ.
A large part of selling online is overcoming objections and concerns customers have. A great way to do this is with an FAQ section on your landing page. Questions like “why are you running this promotion”, “what shipping options are available”, and any product-specific questions help to get past anything that may be getting in the way of the customer making a purchase.
Display social proof.
Social proof is another way to overcome objections and make shoppers more comfortable making a decision. Social proof is evidence that other shoppers bought the product, and were happy with it. The easiest way to display social proof is displaying 5-star reviews for your product on the landing page.
How to Improve Your Conversion Rate on Amazon, Method Two: Warm Traffic
The “warmer” the traffic you send to Amazon, the higher percentage will covert. Warm traffic means people who are familiar with your product and/or brand, and require less work to convince them to buy.
A landing page funnel is one way to warm up your traffic. Alternatively, you may have certain segments that are already warmed up, and will convert at a higher rate than average.
Warm traffic may be:
- An email list
- A Messenger/ManyChat audience
- A list of past buyers from your website
- People who have interacted with your website or landing pages in the past
- Traffic from high-intent keywords on Google
Cold traffic is generally people you’ve targeted with interest/behavior targeting on Facebook Ads, or Google Ads clicks from broader, low buyer-intent keywords.
You can drive cold traffic too, but make sure you filter these people with a landing page.
With warm traffic, you may be able to get away with sending them straight to Amazon, which may result in a higher sales volume. For this, use LandingCube’s URL shortener to track and optimize your links to Amazon.
How to Improve Your Conversion Rate on Amazon, Method Three: Better Product Listings
You may be losing conversions by focusing too much on keywords, and not enough on your customers.
Keyword optimization is important when creating your listing, but it shouldn’t be at the expense of readability. In the end, the most important thing is that your listing copy sells people on your product and its benefits.
The first step of making a better converting product listing is readability. Make sure it’s easy to read. Not just that, but that it’s easy to skim. People want to be able to quickly glance over your product description and get what it’s all about.
Then, make sure it makes sense. A lot of listings are terribly written, and it’s clear that the seller only put words in there for the sake of keyword optimization. This looks unprofessional, and will hurt your conversion rate.
Focus on benefits, not features, of your product. A feature is part of your product, e.g. the material or the size of it. The benefit is how this helps the customer – e.g., “big enough to…” or “long-lasting and durable”. Customers care about benefits, not features.
Finally, get better product images – high quality images, showing your product from a number of angles, in a number of use cases. This is a proven way to improve conversions rate.
How to Improve Your Conversion Rate on Amazon, Method Four: Social Proof
Just as social proof will help your landing pages convert better, it’s vital for your product’s conversion rate on Amazon.
There’s one big piece of social proof, which is a must for Amazon products to have a good conversion rate. Reviews.
Products with more reviews and a higher rating are proven to convert more. This is the social proof shoppers need to be confident in making a purchase.
Summing Up: Boost Conversions with LandingCube
Conversion rate is more than just a vanity metric. It has a huge follow-on effect on Amazon SEO, and overall profit.
One of the best ways to increase your conversion rate is to build a landing page funnel with LandingCube. LandingCube pages are tried and tested, and proven to have a positive impact on conversion rate.
A LandingCube user put it very well:
I’m very happy so far. My campaigns are giving me a much needed conversion boost. It’s letting the people who click on my Facebook promo have a good look at the product, and only the ones with intent to purchase are moving on to Amazon.
Previously, I was getting increased velocity but also a decrease in conversions which led Amazon to decrease my rankings after 3 or 4 days. Now, I’m getting increased velocity AND increased conversion rate.
You can try it out yourself for free, for 21 days. Be sure to pay attention to your conversion rate before and after sending warm traffic to your listing via a landing page.
The boost in conversions is just one way your Amazon store will hit a new level by using LandingCube.