Many sellers are too concerned with traffic and forget that conversions are also necessary. Therefore, they try to find ways to increase traffic to their website as much as possible. It is a big mistake!
In fact, being visited by 10 people a day and all of them buying is better than having thousands of people visiting a day but only 1 person buying, right?
This article will cover what conversion rate is, its importance, and how to improve it. So. let’s read on!
What Is Conversion Rate?
Amazon conversion rate indicates the percentage of clicks on your ad that converts into sales. It is calculated according to the following formula:
Conversion rate = Total conversions/ Total clicks
The average Amazon conversion rate is 9.87%.
There are many reasons why this ratio is essential to Amazon sellers. These include:
- It helps you give an overview of the listing’s condition.
- Help your products rank better.
- It shows you what areas you need to improve on.
- And more.
However, a high conversion rate does not indicate that your business is doing well. For example, you have a visitor who purchased your product, resulting in a conversion rate of 100%. Therefore, to assess the health of your business, it is essential to rely on actual numbers rather than just percentages.
As mentioned above, the conversion rate is one of the factors that get your listings to rank higher. The reason is that Amazon’s A9 algorithm relies on conversion rate and sales speed to rank your listings.
As a result, if your conversion rate is low, your products will be less likely to show up on the first page of search results.
What Affects the Amazon Conversion Rate?
1. Keyword Choice
Most Amazon sellers understand the importance of choosing the right keywords. However, not many people care about the dangers of choosing the wrong keywords.
For example, you sell wired headphones on Amazon, and you notice that “wireless headphones” get more searches. Thus, in the hope of getting more pageviews, you use that keyword even if it does not match your product.
When potential customers search for the term “Bluetooth keyboard,” your listing might show up, and they click on it. However, because your product does not fit your needs, they will leave your site and go elsewhere.
Will this affect your conversion rate? The short answer is yes.
You get lots of visits but low conversions; according to the formula mentioned above, your conversion rate becomes lower. So, of course, your product will be less likely to show up on the first page of Amazon search results.
2. Content Quality
The product description is limited to 2000 characters. Therefore, it is essential to optimize your product description. Also, use high-quality images to make your listing stand out.
3. Number of Reviews
As a rule, the more good reviews you get, the better your conversion rate. Therefore, increasing the number of reviews on a product is crucial for every Amazon seller. Unfortunately, the majority of reviews come from people who have had a bad buying experience.
In addition, positive reviews are also crucial for sellers before launching a new product. That’s why services like the Early Reviewer Program were born.
5 Tips To Increase Amazon Conversion Rate
1. Optimize The Listing
Product descriptions and images help customers identify your product. Therefore, they are essential.
It is essential to ensure that your images are informative and high-quality. However, having high-quality images is not enough. You must make image edits to help potential customers know your product better.
When it comes to listing names and product descriptions, the best thing is to provide as much helpful information as possible. Here are some pro tips:
- Do not use all caps.
- Try to highlight the best features of the product in the title.
- Add the number of units.
- You are limited to 200 characters. Therefore, optimize the character allocation.
2. Set a Suitable Price
You cannot price your products too high because customers tend to choose cheaper options. However, you also do not want to sell your product at a meager price, resulting in a loss.
It is best to research what prices your competitors sell. Based on this information, you can sell your products at high enough prices for you to profit from.
3. Improve Your Products
You can make a lot of money through promotions or aggressive advertising on social networks. However, providing high-quality products is the only way to get loyal customers. It allows you to build trust with old customers and attract more new customers.
4. Launch New Products Properly
Launching a new product is not easy. As mentioned above, positive reviews are very important for an Amazon seller when launching a new product. This makes customers more likely to trust you and your product. That’s why you should take advantage of the Early Reviewer Program.
5. Strengthening Amazon SEO
Amazon SEO is a critical factor in helping you achieve success on Amazon. This includes doing keyword research before writing any listing. Also, you need to make sure that you know what people are searching for when it comes to your product and target the most relevant search terms.
There are several opportunities to use keywords when creating product listings. So, it is wise to include these terms in the product title, features, description, and URL of the product.
In short, the conversion rate is significant for every Amazon seller. It helps your listings rank higher, allowing you to get more traffic in the long run.
You can do many things to improve your conversion rate, and we’ve covered some of them in this article. Hopefully, they are helpful to you.