7 Effective Ways to Increase the Conversion Rate on Amazon
Amazon provides great exposure to the marketplace across the globe, meaning being the largest online store in the world, it drives billions of shoppers to your listing. Yet the prime challenge in front of Amazon sellers is to convert these potential customers into actual customers.
Gone are the days, where a person walked in your store and asked questions and a seller used to convert the chance into sales by answering their questions with your interactions. Now, in the era of online shopping, the conversion rate is much lower because of not having direct interactions. However, with many options available for the Amazon sellers, it doesn't have to be that way only. With proper strategy and planning, sellers can easily determine their conversion rate.
Before we move forward to look at the considerable ways to increase the conversion rate, let's first understand what it is and how it is calculated.
Conversion rate is a percentage that signifies the number of times you had turned the visitors into the customers. In general, it is often influenced by factors such as the number of people clicking through to the advertisement, the competition level, price comparison and seasonal discounts, etc. But Amazon conversion rate focuses mainly on the sales made through the platform.
The conversion rate is calculated by dividing the number of sales by the number of times people visited the listing.
On Amazon, to find your conversion rate, go to Reports, then Business Reports and then find sales and traffic. Now under the labeled "Order Item Session Percentage", you will get your conversion rate. To get it for each product, you will have to check out the same column in the “by ASIN” reports.
How to interpret the conversion rate?
For interpreting the conversion rate you must take profits and number of visits into consideration. If you have a high conversion rate but low profit, then it will be of no use.
Similarly, if the conversion rate is high but visits are low then also it will lead nowhere. For instance, your conversion rate is 60% and visits are 10 means your actual sales is only 6, whereas if the conversion rate is 5% and the visits are 1500 means your sales are 75 products. In such a case conversion rate of 5% is far better than 60%.
On Amazon, a conversion rate of around10% to 15% is considered good.
Now that we know what the conversion rate is and how it determines the value of your marketplace, let's jump to find out the multiple ways to increase the conversion rate.
Frequent optimization of products and brand content - It is a well-known fact that your online visibility is equally proportional to the keywords and key phrases you use in your content. When shoppers visit Amazon, most of them, use a certain type of common words which act as keywords for you. If you do not use the relevant and updated keywords in your content then don't expect yourself in the higher search ranking.
Do regularly optimize your content with the trending and relevant keywords because better-optimized content means better search ranking and better search ranking means increased traffic which in turn increases the probability of increasing conversion rate. But, use always relevant keywords, as irrelevant keywords will attract unnecessary traffic, which further increases no sales and low conversion rate.
Sign up as an Amazon prime seller - In comparison to regular Amazon sellers, Amazon prime sellers get more exposure as they are eligible to connect with both regular and prime Amazon shoppers. There are many ways to become an Amazon seller such as opting for the FBA or SFP shipping program. The Amazon shoppers tend to trust prime badges more because they know by purchasing from the prime seller, they are getting the best product.
That's why sellers should take a chance and get themselves the prime badges as you cannot simply ignore the benefit of more exposure and customer satisfaction in increasing the conversion rate.
Offer competitive prices and other exciting offers - If you are dealing with the product that has reached the level of equilibrium in your marketplace, then you can increase your conversion rate by offering a competitive price. Take the advantage of a product based market relative to the competition and increase your sales by differentiating other elements of your marketing strategy such as providing exciting offers, fast or free shipping services etc, to attract customers in purchasing your product.
Don't forget Amazon PPC - Amazon PPC is the most effective Amazon advertising tool and also for increasing the conversion rate. For the best result, refine your content and use keywords tactically as Amazon sponsored products and brands mainly perform on the basis of the keywords/keyphrases that you incorporate.
Still, including keywords are not enough; keep tracking your metrics, three in particular: sales, expenditure on advertising and the average cost of sales. Be careful of how you are executing Amazon PPC strategy because certainly, you don't want irrelevant clicks on your advertisement, which not only increases your wallet burden but also affects the conversion rate adversely.
Ascertain supervision of reviews and ratings - Reviews and ratings are the personal recommendations for the shoppers. Usually, before placing an order, shoppers go through all the reviews and ratings to know more about your products. Therefore, you should focus on both managing and increasing reviews as not having enough reviews is also problematic.
Do not delete all the negative reviews, showcase it because it makes the positive reviews look better and customers also get the exposure of both sides of the product. If you want you can take help of Amazon service provider for managing the reviews as it highly influences customers’ decisions and will aid you to increase conversion rate.
Run external marketing campaigns - For increasing the conversion rate, first, you need to focus on increasing traffic on your product page. For this, you should run external marketing campaigns by utilising social media platforms or affiliate marketers. Take your products' advertisement external to Amazon, although eventually, it will navigate the customers to your Amazon marketplace, but not by naturally going through Amazon itself. Do not forget to include a link to the product listing with your external advertising.
Take the help of A/B test - Through A/B testing you can increase your conversion rate as it will let you know which product page is more effective in increasing the traffic. All you need to do is to show two different variants of the same product page. Many Amazon A/B testing tools are available that assist sellers in gathering the data of the actual customers who browse your products while helping you to determine which variants (like title, product description and image) customers will likely prefer.
Conversion rate determines the position and productivity of your marketplace. The Amazon conversion rate is very significant because when it comes to ranking on the platform, Amazon A9 algorithm seems to assess sales velocity and conversion rate as two of the most important aspects.
To support the sellers, Amazon has its own Service Provider Network that assists the Amazon sellers in carrying out their business operations while complying with the guidelines issued by Amazon.
Evantage is one of the best Amazon Service Providers that supports this entire chain of events leading to marketing and demand generation for your Amazon store, excellently. We dispense the wealth of our experience to provide you with the best Amazon E-commerce solutions.
Lead your journey with us!!