Sourcing great products and going through the hassles of listing them on Amazon can be very frustrating if the sales figures aren’t reflecting your level of effort.
But like every other thing, working smart is always more productive than pouring blood, sweat, and tears. If your sales numbers are grossly below your expectation, your sales conversion rate is low and that means you’re not doing something right.
But what is a good sales conversion rate on Amazon? Read on to find out.
What is the Sales Conversion Rate?
Your sales conversion rate is the metric that shows how many unique visitors viewed your product page and complete a predetermined action.
The action could be adding products to the cart, adding products to a wish list, sharing your store on social media, joining your email list, or making a purchase.
In this case, making a purchase is the most important action an Amazon seller wants from a shopper.
Generally, a good conversion rate on Amazon is considered an excellent rate compared to other e-commerce marketplaces. Little wonder merchants, vendors, brands, and manufacturers are attracted to the platform.
On average, Amazon Prime sellers have a conversion rate of 74%, and the figure for non-Prime members is around 13%.
The conversion rates on Amazon are quite impressive considering that the average sales conversion rate on many top e-commerce platforms stands at about 3.32%.
If your Amazon conversion rate is low, it’s probably because something is wrong with your product listing, price, or the product itself. But more commonly, it is because you aren’t doing the right things to increase your sales conversion rate.
How to Track Your Amazon Conversion Rate
Now that we’ve satisfactorily answered the question, “What is a good sales conversion rate on Amazon?” and have seen the averages, the next logical question is: how do you track your conversion rates on Amazon?
It doesn’t matter if you learn all the textbook definitions and know all the theories and standard averages that apply to e-commerce stores. All of that knowledge would be unhelpful if you can’t translate it into tracking your conversion rate on the platform.
Thankfully, tracking your conversion rate on Amazon is pretty straightforward. Here’s how to do it:
- From your Seller Central menu, navigate to “Reports” and select “Business Reports”
- Select the “Sales and Traffic” category
- Navigate to the “Order Item Session Percentage” to see your conversion rate
- To get the conversion rate by product, find the “By ASIN” subcategory and click on the report
- Next, click “Detail Page Sales and Traffic” and choose the date range you want
The report shows you the details of your conversion in a tabular form.
Are Your Amazon Conversion Rates Good or Bad?
“Good” and “bad” are usually subjective terms, and this also applies to measuring sales conversation rates.
For example, a 50% conversion rate might seem great until you dig into the data and find out that you only had 2 orders out of 4 sessions for a product that sells for $10.
Ordinarily, a conversion rate of 50% should be “good” but that’s not the case here. In fact, it is rather disappointing and “bad” in this scenario.
On the other hand, you may have a 20% conversion rate out of 50 sessions for a product with a price tag of $100. That’s a huge conversion rate because the session is higher and the sales are equally great.
So, how do you determine that your conversion rate on Amazon is good or bad?
Simple: stack it against Amazon’s numbers or check out how to optimize your Amazon listing here.
As we’ve seen earlier, a good conversion rate on Amazon is 13% for non-Prime members while Prime members typically convert at 74%.
Just before you start beating up on yourself if your numbers appear low, you need to keep one thing in mind: a good conversion rate on Amazon varies based on the niche and product.
If you sell items with high price tags, customers are not likely to buy the first product they come across just because they landed on your listing after a search. In most cases, potential buyers will shop around and compare prices to similar products before making a buying decision.
This can happen in more than one visit to your product page, so it might take more than one session for a shopper to convert.
In other words, you will likely have a lower conversion rate if you sell more expensive or high-end products.
But what is a good sales conversion rate on Amazon for inexpensive products?
Here, you’ll have to factor in your sample size when determining a good conversion rate. Like in the earlier example, your data might show a 50% conversion rate for 4 page views or sessions with only 2 orders for a $10 product. Your sample size in this case is poor and that’s not good for your revenue.
Whether you sell high-end or inexpensive items in your Amazon store, your goal should be to drive traffic to your store. By increasing your sample size or session, you will ultimately boost your sales and increase your bottom line.
So, how do you improve your page views or sample size (session) to boost your sales conversion rate on Amazon?
Let’s find out below.
How to Increase Sales Conversion Rate on Amazon
Maintaining a strong conversion rate on Amazon is important for two solid reasons.
First, it means you are making more sales, which directly impacts your revenue positively. Secondly, and equally important, a good conversion rate means your product is quite popular on Amazon.
That means the company’s algorithm will likely place your product listing in an enviable position in the search rankings. Ultimately, this leads to greater visibility and translates to even more sales.
When it comes to increasing your conversion rate, your main goal is to make the shopping experience very straightforward for potential buyers.
Here are some ways to smash that goal.
Be Deliberate About Keywords
Here’s where many new Amazon sellers miss the mark. Of course, millions of shoppers flock to the world’s largest e-retailer platform but you are not targeting every single one of them.
Not everyone is interested in your product or even your niche.
In other words, stop wasting your time and effort bidding on every possible keyword related to your product.
Instead, research unique keywords that can grab the attention of your target market, and focus on bidding for those.
Being deliberate is the most productive way to go about your keyword research.
Create Impressive Product Listings
If you are an Amazon seller, chances are you’ve also bought items on the platform. Have you ever wondered why you were attracted to the specific items you purchased out of the several hundred similar products on Amazon?
Impressive product description!
You’ll pay less attention to a product that doesn’t have a good description, right?
That’s exactly what your potential customers think, too!
Make your product listings simple to read and understand. Include attractive titles and high-quality images. Add detailed and useful information about your product and format everything for easy reading and skimming.
Keep in mind that many shoppers browse Amazon listings on their mobile devices, so format your product listings to look great on phones and tablets, too.
Make Good Use of Reviews
Positive reviews about your products can build confidence in your store visitors and help increase your sales conversion rate on Amazon.
Don’t forget to respond to reviews, whether they are good or bad. While sellers will always prefer a positive review, bad ones can help you correct what’s wrong and eventually improve the customer experience.
Overall, engaging customers by responding to reviews can lead to repeat purchases because buyers will see that you value their opinions.
If you’re not getting enough reviews, you may need to nudge buyers a little bit to get positive reviews. Consider sending tailor-made follow-up emails to ask customers for feedback. That’s a great way to get reviews and have shoppers share their experience on your product page.
Whenever possible, offer a promotion or discount on some of your hot selling products. Doing this will not only give customers a good deal, but it will also increase your visibility and competitiveness.
What is a good sales conversion rate on Amazon? That depends on a few different factors which we’ve covered in this article.
But whether you are currently happy with your numbers or not, the most important thing to take away here is applying practical steps to increase your sales conversion rate. Doing so will help maximize your success on Amazon as well as other marketplaces where you sell.
Driving organic traffic to your Amazon store or spending money on a paid ad is great. But it is more productive to use the extra tips shared in this post to convert that traffic.