Amazon Conversion Rate – What It Is & How to Optimize for Higher Sales

How could you engage an audience and know how much of an audience visited your listings and bought the product? That’s all can be possible by understanding the Amazon conversion rate. A higher conversion rate means you are making good sales. On the other hand, a lower rate means the listing isn’t making enough fruit for you.

It’s very important to understand these conversion rates so that you can become a successful seller on Amazon. And if you are interested, then keep reading because this article will explore the essential layers of selling. Including listing your product confidentially on the Amazon selling platform.

So, Let’s Start!

Your Amazon conversion rate is the percentage of visitors who purchase your product after viewing your listing. It’s a direct measure of how well your product page convinces the visitor to take action. The average rate of conversion on Amazon is around 10% to 15%.

However, not all products convert at the same rate. Expensive items often have lower conversion rates. That is because shoppers take longer to research and compare options. On the other side, cheaper items usually have a higher rate. Besides that, several other factors like the listing method might affect the rate as well.

Amazon provides conversion rate data directly in Seller Central. It makes it easy to track and analyze. Here’s how to find it:

• Log in to Amazon Seller Central.
• Go to Reports.
• Open Business Reports.
• Click on Detail Page Sales and Traffic by Parent Item under the By ASIN section.
• Look for the column labeled Unit Session Percentage.

Amazon calculates the conversion rate using the following Amazon Conversion Rate formula:

• Sessions = The number of unique visits to your product page. (If the same user visits multiple times within 24 hours, it still counts as one session.)
• Units Ordered = The number of units sold.
• Unit Session Percentage (USP) = The percentage of sessions that led to a sale (this is your conversion rate).

For example, if your listing had 2,000 sessions and resulted in 250 orders, your average Amazon conversion rate would be 12.5%.

Amazon is quite different from other marketplaces and platforms. The e-commerce giant boasts a whopping Amazon conversion rate of 9.87%. Even the top sellers often aim for 10-15%. This is almost unimaginable if you’re running your own Shopify store.

This good Amazon conversion rate of the platform is due to different reasons. For example, Prime members tend to convert at higher rates due to benefits such as fast shipping.

Unfortunately, several causes can result in a low conversion rate. For example, factors such as poor product listings, advertising campaigns, reviews, and much more. By fundamentally fixing these issues, you’ll be able to improve your conversion rate.

Let’s discuss the different reasons why you might be struggling with a low conversion rate on Amazon.

1. Product Listing Optimization

Honestly, product listing optimization is the lowest-hanging fruit of conversion rate fixes. A poor product listing accounts for a large percentage of why potential customers drop off. Therefore, you must make sure to fix any issues, such as low-quality images or an insufficient number of photos, and ensure that your images accurately reflect the product’s appearance and features.

Moreover, titles that lack clarity or specificity, along with product descriptions that fail to provide comprehensive information, can have a bad impact on your customers. So, making sure your listings are clear, informative, and visually appealing is absolutely important when it comes to building trust with your customers and encouraging purchases.

2. Customer Reviews

Ratings and Reviews are major factors that can influence your conversion rate. After all, a vast majority of people look at reviews before buying and try to understand the experience of other people before buying the products.

If there are a ton of negative reviews or even too few reviews, you’re conversion rates can be impacted. Especially, as these negative ratings or lack of reviews in general can raise doubts regarding the product’s reliability and the seller’s responsiveness, leading to customers seeking alternatives.

3. Pricing Strategy

Pricing plays an important role when it comes to purchasing decisions. Although it sounds pretty obvious, even if the price is a little higher than your competitors, the customers may look for more affordable alternatives.

On the other hand, pricing that’s too low can also create a perception of low quality. Therefore, keeping a balance by setting a competitive price that reflects the product’s value is essential for attracting and retaining customers.

4. Effective Advertising

Yes, you’re PPC strategy directly influences your conversion rate. For example, if you bid on overly broad or irrelevant keywords, your ad will be lost among the Amazon SERPS and can even reduce visibility.

Of course, Amazon won’t deliver the ad to absolutely irrelevant keywords, but the broader you go, the lower the conversion. Of course, there are large brands that use this method primarily to improve their products’ visibility.

For instance, advertising a “crossbody women’s purse” under the generic term “women’s purse” may not reach customers specifically interested in your product type. This misalignment can lead to waste in ad spending and lower conversion rates.

Enhancing your conversion rate is incredibly important when it comes to the success of your Amazon business.

A higher conversion rate not only boosts your sales but also signals your product’s popularity. This will result in Amazon’s algorithm moving your listing up in the search rankings.

Ultimately, you’ll be able to generate additional sales. To achieve this, it’s essential to create an effective funnel where there are customers with a strong intent to purchase. Here are several advanced strategies to consider:

1. Refine Product Listings

As mentioned earlier, your product listings are crucial to their conversion potential. Customers will always notice the main image, title, and price when browsing products, making these elements important. Besides this, your images play a significant role as well.

So, try to add these things in an appropriate way. Make sure that the description is easy to read, preferably skimmable, using bullet points that expand on the information presented in the images.

2. Target Specific Keywords

Although several targeting strategies are quite brilliant, the most effective PPC strategy is to focus on attracting customers who already have a clear idea of what they want.

This means that you’ve essentially skipped the awareness stage of the conversion funnel and are targeting the people who are ready to buy.

Specifically, take advantage of the exact match type and phrase match type. You can always use a third-party ad optimization tool such as SellerApp to refine your targeting and ultimately limit any waste in your ad budget.

3. Use A+ Content and Brand Story Features

Another way to increase conversion rates is to enroll in the Amazon Brand Registry program and take advantage of A+ content and Brand Story features. They allow you to enhance your product listings with rich media, detailed descriptions, and brand narratives.

This provides customers with a more immersive shopping experience. It’s also important to note that this can actually end up improving conversions as it builds brand trust by effectively communicating product value.

4. Earn Amazon Badges

One of the best ways to improve Amazon conversion rates is to earn some Amazon badges. Badges such as “Amazon’s Choice,” “Best Seller,” or “Climate Pledge Friendly” act as trust indicators and can reduce any buyer concern and instill the necessary confidence in the quality of your product and brand.

A high Amazon conversion rate leads to more than just orders and revenue, it leads to stronger organic rankings, a lower Advertising Cost of Sales (ACoS), and an obvious increase in profitability and scale. However, achieving a great conversion rate isn’t about luck—it requires constant optimization across the board.

From enhancing your images and copy to pricing competitively and using social proof, every small improvement adds up. Of course, the key is to ensure your campaigns are structured properly and your bidding strategies are on point.

You must make sure to regularly monitor your conversion rate through Seller Central reports, allowing you to track trends and spot potential issues early.