The average conversion rate for e-commerce sites is 2 to 3%, but Amazon averages 10 to 15% for its listings and 74% for Prime users. Amazon sellers have the opportunity to benefit from the huge number of sales, but they have a lot of competition to go up against.
Our team at Click Fluency knows the struggle, so we’ll share seven effective ways to increase your Amazon conversion rate so your business can take off.
How Conversion Rates Affect Amazon’s Algorithm
A healthy conversion rate is vital to your business not only because of revenue but also because the Amazon search algorithm favors higher conversion rates. A poor conversion rate will keep your product low in the search rankings. Amazon’s A9 algorithm analyzes several factors, including:
· conversion rate
· click-through rate (CTR)
· product description
· verified reviews
· sales velocity
By making Amazon like your product, you can start outdoing the competition. We’ll discuss what you can do to optimize your listings in the rest of this article. In short, it involves perfecting your product descriptions, prices, content, and more.
As your products rise in the search results, you’ll see an increase in all the important metrics listed above.
How To Measure Your Conversion Rate
You’ll need a sound baseline to develop a plan to increase your Amazon conversion rate. It’s important to measure the results of your optimization efforts so you only spend time and money on what works.
You can determine your Amazon conversion rates with a simple calculation: divide the total number of sales by the total number of views of the listing. To get this information, follow these steps:
· In Amazon Seller Central, go to Reports, then Business Reports.
· Scroll to “By ASIN” and click “Detail Page,” then “Sales and Traffic.”
· Look for the “Unit Session Percentage” in the list of product sales information.
You can narrow down the sample size by selecting a date range you want to look at.
1. Become Amazon Prime Eligible
You can become Amazon Prime eligible by signing up for Fulfillment by Amazon (FBA). FBA means Amazon takes over packing and shipping your orders, as well as customer service for those products. You’ll pay fulfillment and storage fees in return.
The greatest advantage, however, is getting access to over 100 million Amazon Prime members. Most members won’t buy, much less click on, a product that doesn’t have a Prime badge next to it. They love taking advantage of their Amazon Prime benefits, especially the free two-day Prime shipping.
2. Optimize Your Product Listings
SEO is a critical addition to your digital marketing strategy if you want to improve organic search results on Amazon. Ways to improve your rankings include:
· Conduct keyword research online
· Use the correct product categories
· Put the target keyword in the product title and description
· Organize your content (bullet points, etc.)
You should use relevant keywords throughout your content to ensure you’re capturing all the search terms customers are using to find products like yours.
3. Use High-quality Product Photos
Unclear, low-quality photos will drive shoppers away and hurt your product’s conversion rate. Pictures are the first impression buyers have of your product, so they should be professional, high-quality images. Pictures provide essential information to buyers, such as:
· What the product looks like
· The size of the product
· How the product works
· How people use your product
· What comes included with the product
While focusing on the customer is important, remember that you must adhere to Amazon’s standards for product images.
4. Create Content With the Customer in Mind
Part of optimizing a product listing is ensuring you have a well-written description that focuses on customers’ needs and leads them through the sales funnel. Even if you have an in-depth, accurate description of the product’s features, people are less likely to convert if they don’t know why they need your product.
The following are a few questions you should consider when writing your product description:
· What problems does my target audience have?
· How does my product solve those problems?
· Why is my product better than the competition?
If you need inspiration for your product’s benefits, check the reviews!
5. Choose the Right Price
Because Amazon’s selling point is giving customers the best prices, its algorithm naturally prioritizes sellers with suitable price points. Making your price too high or too low hurts your product’s ranking in the search results, so you’ll need to find the sweet spot that gets you a higher conversion rate.
Products with the best prices also have a better chance of winning Amazon’s Buy Box, leading to more sales.
6. Advertise With Amazon PPC
Amazon has three primary options for paid ads: sponsored products, brands, and display ads.
Pay-per-click (PPC) advertising only requires you to spend money when someone clicks on your ad. Using data from your ad campaigns, you can home in on well-performing keywords for your products. This allows you to narrow down your audience to high-quality viewers who are more likely to buy, increasing your conversion rates.
7. Focus On Getting Reviews
Verified reviews are an important piece of the puzzle when convincing people to buy. Positive reviews act as social proof that your product is worth purchasing. If you only have negative reviews, you could suffer lost sales from the lack of social proof.
Try to reply to customers when they review your products and resolve issues politely and promptly. Even one loyal customer can give you the boost you need to increase your Amazon conversion rate.
A good conversion rate means more money and growth for your business. While some of the solutions we mentioned involve spending money, anything you can do to increase your Amazon conversion rate is worth it in the end.
At Click Fluency, we know what it’s like trying to climb up the ranks on Amazon. We’re committed to using the marketing strategies we’ve learned to help businesses optimize their ads, content, and account management. Schedule a call with us today!