Conversion rate on Amazon is an important metric for sellers because it is essential to ranking highly on Amazon. Within Amazon’s A9 Algorithm, Sales Velocity and Conversion Rate are the most important metrics. When your product listings are converting traffic into sales, this tells the algorithm that what you are selling is relevant for the keyword that the customer search for. By continually converting sales for these keywords, your product’s visibility will get a boost.
Calculate your Conversion Rate on Amazon
To calculate your Conversion Rate on Amazon, use the following formula:
Total Number of Orders
Total Number of Product Listing Sessions
You can also look at the Unit Session Percentage metric to see your conversion rate on Amazon as well. The Unit Session Percentage shows the “percentage conversion metric indicating how many units were purchased relative to the number of people who viewed the product.”
What’s a Good Conversion Rate on Amazon?
While it’s difficult to pinpoint exactly what is considered a ‘good’ conversion rate, as it varies depending on what products you are selling, in general the average conversion rate to aim for is between 10-15%.
It’s important to keep in mind the context of your conversion rate because different sets of data can mean different things when considering if your conversion rate on Amazon is good or not. For example, if you had a conversion rate of 50%, you’d be ecstatic, right? But if you consider all the data for this example, 4 sessions and 2 orders, you might reconsider your excitement, unless you have a product with a very high price and great profit margin. On the other hand, if your conversion rate was only 3% but your product had 3,000 sessions and 90 conversions, you’d probably be happy with that, since you sold a large number of products and had a lot of sessions.
How to Improve Your Conversion Rate on Amazon
So how can you improve your conversion rate? Before you can start getting more conversions, you have to find and attract more customers to your products. Keyword research is important in order to optimize your product listings and show up in as many relevant searches as possible. You can find keyword research tools for free to make this process as easy and painless as possible. Once you find the best keywords for each product, add them to your listing in the title, bullet points and description as appropriate. You should also further optimize your product listings to get the most out of each one. It’s also beneficial to try split testing to see which variations attract and convert the most customers.
Once your product listings are put together, try using Amazon Sponsored Product Listings to help your product listings get in front of more customers and be more likely to get clicked on. These kinds of ads on Amazon are based on keyword-targeting. Using Sellozo, you can automate your Amazon ads, so you can focus on other aspects of growing your business. The platform will automatically adjust bids on keywords to keep your ACoS as low as possible while optimizing your ads to get you the most traffic (and hopefully sales!) as possible.
Most Amazon Selling Experts agree that the only definitive ‘good’ conversion rate on Amazon is a higher one than you had in the past (day, week, month, etc). Industry benchmarks are fine if you want to compare yourself to everyone else, but it’s more beneficial to compare your business’s performance over time to gauge if it’s performing well or not.
It’s important to remember that while your conversion rate on Amazon is a useful metric to consider and keep track of, it’s only one piece of data that helps indicate how your Amazon business is performing. You should also take things like your total sales, sessions, profits, etc. into account when gauging how well your business is doing.
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What Metrics Are Important In Understanding How To Rank Well On Amazon?
Within Amazon’s A9 Algorithm, Sales Velocity and Conversion Rate are the most important metrics. These help Amazon understand how your products sell and if they should be ranked higher.