The Amazon Marketplace provides hundreds of entrepreneurs with the exciting opportunity to expand their e-commerce business on a platform visited by 2.45 billion people monthly. As an established seller that wants to push growth, making data-driving decisions by looking at key performance metrics is essential to growing your Amazon store. That's where your conversion rate comes in.
Ever wonder why you're getting beat in organic search by a competitor selling a similar product? It's because your competitor's sales conversion rate is likely better. Let's grow your marketplace store by exploring how Amazon sets sales conversion rates and exploring how you can improve yours.
Understanding Amazon Conversion Rates
Let's start by defining what Amazon considers a conversion rate. A conversion rate is a data point measuring how many people visited or clicked your listing and made a purchase calculated by a percentage. For example, if ten people saw your listing but only two people bought that item, your conversion rate is 20%.
For an e-commerce store, Amazon calculates sales conversion rates once a customer makes all of the following steps:
- A shopper searches for your term
- They land on your listing
- They add the item to their shopping cart
- They complete a purchase
What Is a Good Amazon Conversion Rate?
The average Amazon conversion rate for Prime sellers is 74%. In contrast, the average is between 10% - 15% for non-Prime sellers. It's difficult to establish "good" conversion rates since they are also subject to price, sales rank, reviews, seasonality, and what you are selling.
However, you're only rewarded by Amazon if you have a high volume of shoppers that convert. This is because of how Amazon's A9 Algorithm prioritizes content. Meaning a seller with a conversion rate of ten visitors and two sellers wouldn't see organic listings skyrocket because the A9 Algorithm requires a considerable amount of sessions to gain its attention.
How Do I Find My Conversion Rate On Amazon?
To find your seller conversion rate:
- Head to your Amazon seller dashboard and click on Reports
- Navigate to Business Reports
- Then Detail Page Sales & Traffic to get a performance summary
If you're using Seller Central, you can find your Amazon conversion rate under Reports → Business Reports → Detailed Page Sales and Traffic Reports.
How's your conversion rate? Is it high? Is it low? Remember, that number matters because it relates to your success as a seller, which Amazon's A9 Algorithm weighs when prioritizing your content over others.
Tips for Improving Your Amazon Conversion Rate
Now that we've learned about Amazon conversion rates and how the A9 Algorithm prioritizes products, here are a few ways to boost your e-commerce store's visibility.
1. Optimize Your Listings
Performing keyword research tailored to your inventory. Then, use those keywords to optimize any content on product pages by updating your product title, writing a compelling description, and using Call-to-Actions (CTAs).
2. Price Competitively
If you need to increase your conversion rate to increase search rankings, review similar items and optimize your listings price based on your research. Optimizing pricing doesn't always mean you have to sell a product for less, so we recommend running A/B testing to find a price that works best.
3. Prioritize Reviews
Amazon's algorithm is more qualitative than quantitative. So if your business isn't prioritizing customer reviews, set a goal to get one new review a week from a verified buyer by emailing your customers.
4. Optimize Images
How you present what you sell matters. Review your Amazon store to ensure all listings include an image that makes your products shine. For sizing, Amazon recommends a square image sized at 1,000 pixels.
5. Offer Prime Shipping
Offering Prime shipping of your products to customers is a great way to impact conversion rates. Buyers can filter products specifically by if they can be shipped using Amazon Prime or not. Fast and free shipping are great motivators for users to buy.
Reach E-Commerce Success with SellerActive
Reaching your customers can be challenging. That's why we specialize in helping businesses grow by offering multi-channel listings and repricing software to boost e-commerce sales. If you'd like to learn how to automate, optimize, and expand your business on Amazon, start a free 14-day trial of our service or contact us today.