Amazon Conversion Rate is calculated by dividing the number of sales by the number of times people have visited your product and is applied to the sales you made through the platform.
I will share with you the 4 best ways to improve your Amazon conversion rate & grow your sales. By mastering this key aspect of selling in Amazon, you will have more chances to be a successful Amazon FBA Seller.
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If you're looking to start a business selling products on Amazon, then you'll need to know and understand the product listing criteria and how to rank on Amazon FBA. Yes, you can start making money selling on Amazon, regardless of your experience selling online.
Amazon is one of the best opportunities to make a passive income and earn money from anywhere in the world. Gone are the days of directly exchanging your time for money. That's the old model. The new model leverages the incredible opportunity that the internet affords us.
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4 Best Ways To Boost Your Amazon Conversion Rate - Audio file |
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Hey guys and welcome back to my channel. In this video I would like to go over the 4 best ways to boost your Amazon conversion rate and get more sales, so be sure to watch all the way through so you don't miss any of the important details as we do have a lot to cover.
Now, before I hop into this video, if you are new to this channel you're going to want to subscribe as I talk about the best ways to make a full time income with Amazon FBA and always get straight to the point.
So please subscribe and turn on your post notifications if you like channels that don’t waste your valuable time, with that said let's get right into this video.
Now, conversion rate is an important metric in any business. A high conversion rate means better overall margins, and a higher percentage of sales in your back pocket.
It’s especially important on a competitive e-commerce platform like Amazon. Your conversion rate on Amazon doesn’t only have an impact on your profit, it’s a key factor in organic search rankings, and as a result, overall sales.
So what is a good conversion rate on Amazon? On average, a good conversion rate on Amazon is around 10 to 15%. This is, however, not taking into account any additional factors which may make your conversion rate acceptable or not.
Conversion rate should be analyzed in context. There are many things that should be taken into account. Sample size for example. Maybe you have 5 conversions out of 10 page views.
That’s a 50% conversion rate which sounds great, but you’ve only made 5 sales. In comparison, 100 conversions out of 1000 page views is a much lower conversion rate, but you’ve made a lot more revenue.
Your price point and margins also come into play. If your product is expensive or has particularly high margins, you can afford to have a lower conversion rate. In comparison, cheaper items which don’t make so much profit need to move a lot faster, this is where a 10 to 15% conversion rate might not cut it.
What you should know is, 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 it’s important to realize that these numbers are averages, and you should review your conversion rate in relation to your own context.
To be able to evaluate whether your conversion rate is good, a few things need to be considered.
First we have the timeframe & sample size. The longer the timeframe and the larger the sample size 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.
Second we have the 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.
What we also need to consider is the 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. So take this into consideration.
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, the lower the acquisition cost, and the higher the margins, 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.
With this knowledge in hand, I will now give you four ways you can boost conversion rate on your Amazon products.
Method One is to use landing pages. A super powerful way to boost your conversion is a simple external traffic sales funnel. This sales funnel will look like this.
You’ll usually start your sales funnel with ads on Facebook or Google. The key to this sales funnel improving your conversion rate is sending people to a landing page in between the original traffic source and Amazon. Without a landing page, you’ll most likely hurt your conversion rate, rather than improve it.
As I mentioned earlier, Amazon conversion rates are much higher on average than e-commerce in general. Even more so for something like Facebook Ads, where people are not in buy-now mode by default, as they are on Amazon.
For example, let’s say you send 100 people to your product listing from Facebook Ads. The average online conversion rate is 3%. Let’s say that 5 out of these 100 convert, since Amazon is good at convincing people to buy.
If your Amazon conversion rate was 13% which is the average for Amazon products, you’ve lowered your conversion rate by sending traffic from Facebook.
The solution is a landing page, which acts as a filter. You can use your landing page to show off your product, its features, benefits, pricing, and everything customers need to know to decide whether to buy or not.
The customers make the decision right then and there, instead of going to Amazon first. That means only the people with the highest intent to buy register a page view of your product, and a significant number of these shoppers will make a purchase.
Unless there’s something really wrong with your product listing, you’re likely to get more than 13% conversions from this source, so your overall conversion rate will go up.
Just using a landing page in the first place is likely to improve your overall conversion rate. But here are some tips to make your landing page funnel even better, and get a higher volume of conversions on Amazon.
First, you could offer a discount. A discount makes it much more likely for someone to buy, for obvious reasons. It will also reduce the number of people who go through to your listing, but buy from a sponsored or related product.
Finally, a discount code is an awesome incentive to use to capture peoples’ emails, and build a launch list.
You can also simulate scarcity. Scarcity is a basic marketing tool, which almost any high-performing marketing team uses. Let customers know there is a limited time to buy your product, or redeem a coupon code, and more people will convert. It’s called fear of missing out.
A large part of selling online is overcoming objections and concerns customers have. A great way to do this is with an FAQ section on your landing page.
Questions like “why are you running this promotion”, “what shipping options are available”, and any product-specific questions help to get past anything that may be getting in the way of the customer making a purchase.
Social proof is another way to overcome objections and make shoppers more comfortable making a decision. Social proof is evidence that other shoppers bought the product, and were happy with it. The easiest way to display social proof is displaying 5-star reviews for your product on the landing page.
Now, before we move on to the next method to improve your conversion rate. As you can see, there are a lot of steps involved in building an Amazon business. And I wouldn't recommend piecing together everything by simply watching videos on YouTube. This is why I suggest investing your time in a great free training that can guide you through this process.
I recommend this training because this is the best training on the market and one that I have personally gone through. They walk you through every aspect of what it takes to start, grow and scale your Amazon business.
This training will build off of what I talk about inside my videos so I left a link for you in the description and if you're serious about selling on Amazon I encourage you to check it out!
Now, let’s move on to method number two which is warm traffic. The “warmer” the traffic you send to Amazon, the higher percentage will convert. Warm traffic means people who are familiar with your product and or brand, and require less work to convince them to buy.
A landing page funnel is one way to warm up your traffic. Alternatively, you may have certain segments that are already warmed up, and will convert at a higher rate than average.
Warm traffic may be an email list, a Messenger or ManyChat audience. A list of past buyers from your website, people who have interacted with your website or landing pages in the past.
You can drive cold traffic too, but make sure you filter these people with a landing page. Cold traffic is generally people you’ve targeted with interest or behavior targeting on Facebook or Google Ads clicks from broader, low buyer-intent keywords.
With warm traffic, you may be able to get away with sending them straight to Amazon, which may result in a higher sales volume.
Method number three is to design better product listings; You may be losing conversions by focusing too much on keywords, and not enough on your customers.
Keyword optimization is important when creating your listing, but it shouldn’t be at the expense of readability. In the end, the most important thing is that your listing copy sells people on your product and its benefits.
The first step of making a better converting product listing is readability. Make sure it’s easy to read. Not just that, but that it’s easy to skim. People want to be able to quickly glance over your product description and get what it’s all about.
Also make sure it makes sense. A lot of listings are terribly written, and it’s clear that the seller only put words in there for the sake of keyword optimization. This looks unprofessional, and will hurt your conversion rate.
Focus on benefits, not features of your product. A feature is part of your product, the material or the size of it. The benefit is how this helps the customer such as, “big enough to…” or “long-lasting and durable”. Customers care about benefits, not features.
Finally, get better product images, high quality images showing your product from a number of angles in a number of use cases. This is a proven way to improve your conversion rates.
The fourth and last method is to use social proof. Just as social proof will help your landing pages convert better, it’s vital for your product’s conversion rate on Amazon.
There’s one big piece of social proof, which is a must for Amazon products to have a good conversion rate. And these are reviews.
Products with more reviews and a higher rating are proven to convert more. This is the social proof shoppers need to be confident in making a purchase.
Conversion rate is more than just a vanity metric. It has a huge follow-on effect on search rankings, and overall profit.
Thanks for watching and please make sure to watch the next videos with more Amazon FBA tips that will show up right about now.
