This post explains how to use LandingCube to boost your Amazon conversion rate. We built in lots of features to help you convert external traffic into customers. And you’ll want to take advantage of them to boost your Amazon sales and rankings.
What is conversion rate and why is it important for Amazon sellers?
Conversion rate is a measure of how many sales occur for each view on a listing.
Using the metrics found in Seller Central’s Business Reports, the formula is:
[Conversion rate = Orders ÷ Page Views]
Conversion rate is crucial to ranking high on Amazon.
“Converting on customer traffic signals to the algorithm that your product is relevant for that keyword. And being able to convert on that keyword overtime will boost your product’s visibility on search engine results pages.”
Utilizing outside traffic sources such as Facebook advertising, influencer marketing and email marketing is a great way to boost both of those metrics. Driving the traffic to a landing page with an opt-in first allows you to filter out the people just browsing from those who actually want to buy your product. This will significantly increase both sales velocity and conversion rates for the keywords you are targeting.
That being said;
Conversion rate needs to be analyzed in context
While conversion rate is a very important metric, it is only one among many metrics. All else being equal, for a given amount of traffic, the more sales the better. However, all else is seldom equal.
“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.
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 how can you use LandingCube to increase your Amazon conversions even more?
Boosting Amazon conversions with Landing Cube
If you are already sending external traffic to your Amazon listings, you may be making a huge mistake. External traffic is much less likely to convert than traffic internal to Amazon. Consumers searching on Amazon are ready to buy… that’s why they are on Amazon. Those crazy high conversion rates are evidence to this.
If someone comes straight to an Amazon listing from Facebook or a blog post, they aren’t as likely to buy. They may have clicked through just out of curiosity. Maybe they want to learn more about the product, but don’t want to buy. Either way, they most likely don’t have that buyer frenzy that people searching on Amazon have. That’s why directing traffic straight to Amazon is a BIG MISTAKE!
We designed LandingCube to solve this exact problem. That is, to take advantage of external traffic without sacrificing conversion rates. LandingCube turns your Amazon listing into a lovely landing page. There you offer single-use discount codes in exchange for emails.
So instead of directing traffic from a Facebook Ad directly to your listing, you first direct traffic to the landing page. Only after they put in their email (in exchange for the promo code) they are directed to your Amazon listing.
Taking the scenic route… using Amazon Landing Pages
This extra step may seem to add an unnecessary complication, at first. Why would you make it harder for people to reach your listing? The same reason a bouncer stands outside exclusive nightclubs. You don’t want the wrong people getting in.
It’s similar with the Amazon landing pages. By directing traffic along the ‘scenic route,’ you keep the wrong people from reaching your listings. And you increase your conversion rates.
A LandingCube user put it very well:
“I’m very happy so far. It appears my campaigns are adding a much needed conversion boost. Basically, it is letting those 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, although I had less steps using Facebook direct to my storefront link, I was getting much increased velocity but also a decrease in conversion which led amazon to 1st increase my keyword ranking and then 3 or 4 days later decrease my ranking. Now I am just getting the increased velocity AND increased conversion.”
People who are unlikely to buy never reach your Amazon listing. The landing page weeds them out. So you don’t get as much traffic to your listing by taking the ‘scenic route’. But the traffic you do get is of higher quality (more likely to convert).
Fewer page views with the same amount of orders equals higher conversion rates. Amazon rewards higher conversion rates with better rankings and, in turn, more sales.
Providing discount codes increases conversions.
This may seem obvious, but it’s worth stressing. Consumers love deals (and so does Amazon, by the way). By offering a discount, you make it much more likely that someone will buy your product.
LandingCube makes it super easy to give out single-use promo codes. Rather than manually sending out each promo code, LandingCube automates it. Here’s how you create the promo codes on Amazon.
So you boost your Amazon conversion rate by filtering traffic through the landing page, and you also gain an asset that is even more valuable than a one-off sale. That is, you get an email, which you can use for more marketing down the road.
LandingCube enables you to market in ways that you cannot on Amazon alone, without breaking Amazon’s Terms of Service.
For instance, LandingCube gives you more wiggle room with product images & video content. It’s a good idea to follow Amazon’s guidelines for quality purposes. Don’t use blurry images, for example. But with LandingCube you can include logos and watermarks in your main image. If you think it will improve conversions or establish brand credibility, go for it.
You cannot include your company’s contact info on Amazon. And including promotional / pricing info (like ‘best value widget on Amazon’) is a violation of Amazon Enhanced Brand Content. With LandingCube, you collect emails before the customer even reaches Amazon.com. So it does not break Amazon’s terms to include your brand logo in the product images and even your own website.
Here are some more ways to use LandingCube to increase your Amazon conversions…
Stimulate scarcity with the countdown timer and coupons-left features. You want to give visitors a sense of urgency to buy now. Think about the emotional reaction that the Jeopardy song elicits. How do you do replicate that? Put an expiration date on your promotion and make it clear with a countdown timer. LandingCube also allows you to display the limited amount of coupons available.
Overcome customer objections with FAQs. People may be sceptical about why you’re offering a discount. You can explain to them how it’s a win-win. (They get a discount. You get increased sales velocity. Amazon sends more customers your way. You make more money so you can provide more awesome products.)
The FAQ section allows you to answer any likely customer questions. So you can put visitors at ease and increase the likelihood that they will buy from you. Likely objections will vary considerably among sellers, but you know products better than anyone else. Help your customers pull the trigger by anticipating and resolving their concerns.
You can handpick your best reviews to display with LandingCube, and take advantage of social proof. You don’t have to display 1-star reviews. Although, keep in mind, that once the customer reaches Amazon they will be able to see all of your reviews. So make sure to manage their expectations. Don’t mislead them, but do show off what you got! We value things higher when we see that other people like it.
LandingCube can also help get you more reviews. If you give an awesome discount, customers may want to leave you a review. This is the law of reciprocity in action- you scratch my back, I scratch yours. Getting more good reviews will lead to even conversion rates. Re: social proof- the likelihood we will buy increases if other people liked the product.
A word of caution: you cannot straight up give a discount in exchange for a review. “I will give you a discount…but you have to leave a review” is not allowed. This is against Amazon’s policy.
What you can do is ask all customers for honest feedback. And some people will leave honest reviews. If you have a good product, many of those reviews will be positive. Either way, you will learn more about what customers think about your products.
Do note, however, that large discounts disqualify reviews from being tagged as ‘Verified Purchase’ reviews.
By collecting emails, LandingCube enables you to reach out to reach out to customers. One way to reach out is to ask for reviews.
LandingCube enables Email Marketing
Email marketing is another way to use LandingCube to boost Amazon conversion rates. The landing page email opt-in collects emails. With a simple click, LandingCube integrates with your favorite email marketing tools. So you can:
- Sort emails from LandingCube into lists
- Set up post-purchase email sequences to automate your communications
- Give customers tips on how to best use your product
- Suggest another product that compliments the one they recently bought
- Ask for Amazon reviews
- Stay in touch with a weekly or monthly newsletter
Whatever you do, just be sure to always provide value to your customers. They will provide value to you in return. Re: reciprocity.
Don’t Run out of Stock
Promotions often contain a major risk that can devastate your conversion rates: running out of inventory.
LandingCube prevents this problem. Sales velocity increases with big discounts. So, often promotions put you at risk of running out of inventory. If that happens, no more sales can be made.
Consumers don’t like that. Amazon does not like that. And it will show in your rankings. But LandingCube will make sure that doesn’t happen.
With LandingCube, you can set a limit to the number of discounted products you are willing to sell in a given day. You will also get email notifications when you run out of promo codes, so you can pause your campaign and prevent your inventory from running out of stock.
Sometimes running out of stock happens because of abusive poachers. Shady people buy up as many discounted items as they can and then sell them later at a higher price.
LandingCube’s anti-abuse settings ensure that this won’t happen. To get the discount, you have to enter an email address and click a confirmation link in the email. Our tool is setup to only allow one promo code per email address, and one code per IP address. And it automatically blocks temporary email addresses (which scammers use to buy up discounted items to resell). This prevents them from buying up all your discounted products.
Amazon Conversion Tracking and Retargeting For More Advanced Marketers
You can get really nerdy with LandingCube. Conversion tracking & retargeting can take conversion rates to an advanced level.
With one click, LandingCube integrates with Google Analytics & the Facebook Pixel. Someone clicked on a Facebook Ad & then went to your listing but didn’t buy? The Facebook Pixel allows you to track conversions from your Facebook Ad. Now you can retarget those people who didn’t buy with ads, or send them an email reminding them to take advantage of the awesome discount.
There’s a lot you can do, and if you’re new to Facebook Ads and retargeting, we’re here to help. Check out this chapter on Facebook Ads for Amazon in our step-by-step guide to driving external traffic to your Amazon listings.
LandingCube offers lots of ways to boost your Amazon conversion rate.
- If you’re going to direct external traffic to your listings, make sure the traffic is high quality. Because ultimately you want sales.
- A low conversion rate on your landing page is actually good for your Amazon rankings. You use the landing page to filter external traffic, so those who reach your listing are more likely to convert. A landing page cuts out those who would otherwise hurt your Amazon conversion rate.
- By collecting emails, you are focused on relationships and the long-term success of your business. But remember, to extract the most value out of each customer, you have to provide even more value.
So take advantage of all that LandingCube has to offer, give your customers tons of value, and watch your conversion rates blossom!