This blog post will cover how to calculate and improve your Conversion Rate on Amazon. I will explain what conversion rate is, how to calculate conversion rate from the reports provided by Amazon, the different types of conversion rates, what it means for your business on Amazon, and how you can improve it. It is important for Amazon Sellers to know their conversion rate so they can better understand how many customers who look at their product are actually purchasing. If a conversion rate is very high, you may be failing to reach new customers and expanding markets, if your conversion rate is very low, there may be something on the detail page or about your product that is preventing customers from making a purchase. A stable conversion rate is good for Amazon Customers, as it ensures they are finding and exploring new products, and are able to purchase ones that are a good fit. A good conversion rate for Amazon Sellers ensures the Amazon marketplace is working well and connecting sellers with buyers.
Sales Conversion Rate on Amazon
According to Amazon, Sales Conversion measures how effective you are at convincing a customer to add your product to their shopping cart and purchase. Conversion rate measures how many orders you are getting on Amazon compared to the traffic on your product listing. The conversion rate for Amazon sellers is a crucial metric that measures the effectiveness of your product listings at turning page viewers into customers. This general conversion rate can also be known as your Sales Conversion rate. Conversion rate is typically expressed as a percentage and is calculated as follows:
Conversion Rate = Total Orders/Total Sessions. Times this by 100 to format as a percentage.
For example, if you had 1,000 sessions (visitors) to your Amazon product listings and you received 70 orders from those sessions, your conversion rate (orders over sessions) would be 7%: Conversion Rate = (70 orders / 1,000 sessions) x 100 = 7%
How do I find sales conversion on Amazon and calculate conversion rate?
There are a few places on Seller Central to pull Sales Conversion metrics including the product recommendations page and business reports.
Sales Conversion on the Product Recommendations Page
Amazon does not directly calculate conversion rate for all of your ASINs . On the Product Recommendations page you are able to see the conversion rate for select ASINs. To get to this page manually, you will go to Growth > Growth Opportunities > Product Recommendations. This page only shows your Conversion Rate for ASINs that contain top opportunities. This page also shows the category conversion rate which can be helpful to understand how many purchases are being made compared to sessions in the category as a whole.
Sales Conversion on the Amazon Business Reports by ASIN
While Amazon does not directly report on conversion rate for all ASINs, they provide many reports that include orders and sessions, so it is easy to calculate yourself. If you want to know the conversion rate by product, we recommend downloading a Detail Page Sales and Traffic By Child Item report. On this report, you can review your total sessions and total units ordered for each ASIN. Simply add a column to = Units Ordered/Sessions Total to get your rate. In a downloaded Excel sheet of this report, that formula is =N2/D2. Format this as a percentage and you have your conversion rate.
Sales Conversion on the Amazon Business Reports by Date
If you want to know your overall conversion rate for a certain date, you can download a Sales and Traffic report by date and make the same calculation. The conversion rate equals Total Order Items divided by Sessions Total. In this downloaded report in Excel, this formula is =F2/N2. Then, you can see your conversion rate by date, and be able to determine if there are any trends that may be connected to your merchandising or advertising efforts.
Advertising and Traffic Conversion Rates
In addition to the general Sales Conversion Rate, you can also calculate more specifically your advertising conversion rate and traffic conversion rate.
Advertising Conversion Rate
The advertising conversion rate for Amazon sellers is a metric that measures the effectiveness of your Amazon Ads campaigns in terms of converting ad clicks into actual sales. It specifically focuses on the performance of your sponsored campaigns. This metric helps you understand how well your ad campaigns are helping to drive sales and achieve your goals. To calculate your advertising conversion rate on Amazon, you can use the following formula:
Advertising Conversion Rate = (Number of Orders from Ad Campaign/Number of Clicks on Ad) x 100
To find this on Amazon, you can export your campaign manager view on the Amazon Ads Console. Conversion on this report = Orders / Clicks. In a downloaded Excel sheet of this report, that formula is = orders column divided by the clicks column.
Traffic Conversion Rate
The Traffic conversion Rate on Amazon for Amazon Sellers is a metric that measures the effectiveness of your product listings in converting the number of page views into actual sales. Number of page views represents the total number of times your product listing page was actually viewed during this time. Using "page views" instead of "sessions" when calculating the conversion rate has some benefits in specific situations. Page views provide more granular insights than the general conversion rate which uses sessions. You can see which products are receiving the most page views and how well they are converting those views into sales. Sessions, on the other hand, provide a broader view of how users are navigating your store and may include multiple page views and interactions, making it less clear-cut in terms of attributing a viewer's intent to purchase.
Traffic Conversion Rate = (Number of Orders/Number of Page Views) x 100
To calculate this on Amazon, you can follow the same process for general conversion rate, but use page views instead of sessions. If you want to know the traffic conversion rate by product, we recommend downloading a Detail Page Sales and Traffic By Child Item report. On this report, you can review your total page views and total units orders for each ASIN. Simply add a column to = Units Ordered/Page Views Total to get your rate. In a downloaded Excel sheet of this report, that formula is =N2/H2. Format this as a percentage and you have your conversion rate.
Conversion Rate Impact on Your Amazon Business
The conversion rate is a crucial metric for your business as an Amazon Seller, and can help measure your success on the platform. Conversion rate helps you understand the effectiveness of your product listings and merchandising. A high conversion rate indicates that your product listings are effectively capturing the interest of potential customers and persuading them to make a purchase. It suggests that your product listings are well-optimized and appealing to Amazon shoppers. This may include great photos and graphics, fully optimized bullet points, premium A+ content, and more. If you need help with any of these, please contact us below. Conversion rate can also help measure your overall sales performance. A higher conversion rate means more of the visitors to your product listings are turning into customers. It can also mean your brand has high customer trust. It means customers may already know your brand and are comfortable making a purchase. Conversion rate can also help you better understand your Amazon Ad Performance. A strong conversion rate for your Ads on Amazon means you are maximizing the return on investment for your ad spend. It means that your ad campaigns are efficiently driving sales, a key goal of Amazon advertising. On the flip side, a low conversion rate can indicate areas that need improvement in your product listings. If your page views doubled, but your sales stayed the same this would be a lower conversion rate and it would be evident not many viewers were converting, and performance is down. It could be due to issues with product descriptions, pricing, images, or customer reviews. It could mean your Amazon ads are not targeting the appropriate terms or reaching the right customers. If you need help on Amazon ads specifically, you may want to start by understanding the different campaign types. Identifying these areas allows you to make necessary optimizations to increase your conversion rate.
How do I improve conversion rate on Amazon?
The main factor to consider here is getting your customers to convert, this means actually making a purchase. Many tools on Amazon that will allow you to do this.
What you can do to improve conversion rates:
A/B tests - Leverage tests to see what converts for Titles, Main Images & Bullet Points. As you try to increase your conversion rate, consider A/B testing to experiment with different elements in your product listings, like titles, main images, and bullet points, allowing you to optimize your content based on real customer preferences. You can test new titles or images and see which customers prefer.
Improve Images - Include high-quality lifestyle images and infographics. Invest in high-quality images, including lifestyle images and infographics, as they play a crucial role in capturing customer attention and conveying product value. This ensures your customers can see the product in use and understand how it works, and allows you to display clear value points over competitors.
Premium A+ Content - Educate through video and visual focused information. Leverage Premium A+ Content, which enables you to create more engaging product descriptions with videos and multimedia, providing a richer shopping experience. Videos are a great way to ensure all customer questions are answered and give them the confidence to make a purchase.
Amazon Ads - Direct your ad spend towards converting traffic. Use Amazon Ads, like Sponsored Products and Sponsored Brands, to target a broader audience and direct your advertising budget toward keywords and placements that are likely to drive conversions, ultimately increasing sales and improving your overall conversion rate. Keep in mind that continuous monitoring and optimization are key to achieving the best results over time.
As you try to improve your conversion rate, be wary of false improvements. If your sessions or page views drop due to decreased advertising or a lack of traffic on Amazon, but you have the same amount of orders, your conversion rate will spike. This high conversion rate can be misleading and is not necessarily a good thing if you are cutting out potential customers and not reaching a large audience. Your conversion rate would be 100% if only 1 person viewed your product and that 1 person made a purchase. As you can see, a higher conversion rate does not necessarily mean higher sales.
FAQ - Frequently Asked Questions on How to calculate and improve your Conversion Rate on Amazon
How do I increase my Amazon conversion rate?
To increase your Amazon conversion rate, consider optimizing your product listings, improving image quality, utilizing Premium A+ Content, and running effective Amazon Ads. Continuously monitor your performance and make data-driven improvements.
How do you calculate Amazon conversion rate?
You can calculate your Amazon conversion rate by dividing the total number of orders by the total number of sessions (or page views), and then multiplying the result by 100 to express it as a percentage.
How do you calculate Amazon Advertising conversion rate?
For Amazon Ads conversion rate, take the total number of orders divided by the total number of clicks. Multiply by 100 to format as a percentage.
What is a good conversion rate for Amazon?
A good Amazon conversion rate can vary widely by category and product and the competition, but generally, a rate above 10% is considered healthy.
Why is my conversion rate so low on Amazon?
A low conversion rate on Amazon may be due to factors like not optimized product listings, poor image quality, uncompetitive pricing, or a lack of customer trust. Identifying and addressing these issues is essential for improvement.
How do I increase my Amazon conversion rate in 2023?
In 2023, consider staying updated with the latest Amazon tools. Focus on enhancing product listings, providing high-quality images, utilizing Premium A+ content, and optimizing advertising campaigns to improve your conversion rate.
What are some quick tips for immediate Amazon conversion rate improvements?
Quick tips for improving Amazon conversion rate include running limited-time sales, optimizing product titles, using high quality images, and ensuring competitive pricing to boost conversions and sales.
Why is understanding and improving my Amazon Conversion Rate important for my business?
Understanding and improving your Amazon Conversion Rate is crucial because it directly impacts your sales and success on the Amazon Marketplace. A higher conversion rate leads to increased revenue and builds trust with customers, while a low rate can indicate missed opportunities and potential issues with your product listings. By optimizing your conversion rate, you can connect better with Amazon customers and achieve more success on the platform.
Conclusion
In summary, a healthy conversion rate is a key driver of success for your Amazon business. It reflects the efficiency of your product listings and advertising campaigns, influences your sales, and plays a critical role in your overall performance on the platform. A strong conversion rate is essential for both sellers and Amazon itself. For sellers, it translates into increased sales and revenue and fosters trust with Amazon customers. For Amazon, it contributes to a thriving marketplace and a positive shopping experience for customers. A low conversion rate can result in missed sales opportunities, underperformance in a competitive market, and reduced returns on advertising investments, causing challenges for sellers, Amazon, and customers alike. To address these challenges and boost your conversion rate, we've discussed four key strategies: A/B testing to optimize key listing elements, improving image quality, leveraging Premium A+ Content to provide a richer shopping experience, and utilizing Amazon Ads to reach the right audience and drive conversions. These strategies, when combined with ongoing monitoring and optimization, will help you enhance your conversion rate, resulting in increased sales and success on Amazon. If you need help with determining your conversion rate and how to improve it, please contact us below.
About the Author
This post was written by Liz Carson, an Account Manager at Goat Consulting. Liz specializes in helping her clients succeed on Amazon by driving increased sales, mitigating risks, reducing costs, and solving various challenges that may arise. Liz has helped in calculating and improving conversion rates for her clients and is skilled at developing strategies that boost conversions and enhance overall performance on the platform. Whether you're seeking assistance with understanding and optimizing your Amazon conversion rate or need support on any other facet of selling on Amazon, Liz can lead your account to success.