Do you want to stand out and boost your brands' conversion rates on Amazon? Then this blog is for you! Here are my 5 tips:
- Amazon Price Optimization
- Amazon Customer Reviews
- Amazon SEO
- Amazon Advertising
- 5 important metrics to monitor daily
Amazon Conversion Rates: Page Traffic vs Sales
The Amazon conversion rate is the number of sales you make divided by the number of times people visit your product page on Amazon.
As a brand manufacturer, you might have hundreds or perhaps thousands of products in your assortment listed on several marketplaces; it may be challenging to figure out where to start optimizing when you could improve each Amazon listing a bit. That's why increasing your Amazon conversion rates begins with knowing where you are at right now and where you want to go.
Before you begin optimizing, you analyze per product or product category the page traffic and conversions and calculate current conversion rates. Keep in mind that high-margin products can gain enough profit with a lower conversion rate, whereas products with a low-profit margin might need higher sales volumes and conversion rates to reach profit goals on Amazon.
Ultimately the question is: are you making enough profit to cover your costs? If you are gaining enough is highly dependent on your Amazon strategy in which you have to take into consideration:
- If you are selling as a 1P or 3P seller;
- Amazon’s commissions;
- Fulfillment costs;
- Product costs;
- And possible recourses to help you manage Amazon.
Once you know your current conversion rates, define your desired conversion rates. Make it realistic by benchmarking Amazon conversion rates for each of your product categories.
The average conversion rate on Amazon is 10 to 15%. For Amazon Prime members it's higher, with an average of 74%
First, concentrate on products with high page traffic and low conversions. Focus for these Amazon listings on price optimization, optimizing product content, and possibly winning (back) the buy button. Then focus on optimizing search rankings for Amazon listings with low page traffic and high conversions.
Amazon Transaction Fees
When selling on Amazon, you as a brand pay a transaction fee for every sale you make on the platform. Typically, this transaction fee is 15%, however, a new incentive could lower this fee. Amazon reduces the transaction fee to 5% originating from brands bringing the shopper directly to the marketplace, instead of the brands' own eCommerce website.
In practice, this means that when a shopper goes to Amazon themselves and finds and buys your product, you pay a 15% fee. If you send the shopper directly to Amazon via an advertisement or newsletter, you only pay 5%.
Amazon's goal? Stopping brands from investing in their D2C website and selling more on Amazon. (source: Marketplace Pulse)
1. Amazon Price Optimization
Focus on products with high page traffic and low conversions and make sure their prices are competitive. Amazon wants to show shoppers the most relevant and best-priced products. Consequently, competitive pricing increases your chance of winning the buy-box. Winning the buy-box, in turn, leads to more sales, driving your conversion rate, improving your search ranking, and so on.
You can check if prices are competitive by analyzing the prices of the top three search results within the product category. Your prices can be around 20% higher than the highest price in the search results to still be within a reasonable range (source: BigCommerce). If your prices are much higher or much lower, you might need to rethink your pricing strategy.
Prices on Amazon can change on average once every 10 minutes, making it a challenge to maintain a competitive price for your products at all times. Automated product price tracking software takes the time-consuming task of manually checking prices off your hands, saving you time and money.
Setting up alerts for price changes keeps you up to date and allows you to take action when needed immediately.
Tracking prices can help you optimize your prices so that you:
- Stay competitive (and win the buy-box);
- Create a value perception that aligns with your brand;
- Cover costs and protect profit margins.
2. Amazon Customer Reviews: Monitor & Optimize
Product reviews and star ratings create valuable and unique content on your Amazon product pages. The reviews and ratings make your products stand out, give shoppers confidence in your business, and eventually help shoppers make a buying decision - 81% of all online purchases occur on product pages with ratings and reviews content.
The unique content that customer reviews contain helps optimize your product detail pages for Amazon search engines, ultimately driving more shoppers to your product pages.
As you can see in the graphic above, it's a continuous circle: more product reviews improve the findability of your products, ultimately generating more product page traffic, more page traffic + valuable reviews result in more people buying your products, who hopefully write reviews on your Amazon listing.
In this blog, I tell you more about how monitoring reviews can help your brand, and how you can generate more reviews.
3. Amazon SEO: Improve Search Rankings
38% of global shoppers search for products on Amazon. So, you might need to take a close look at your Amazon search rankings and SEO activities to get the benefits of this enormous number of shoppers looking for specific products to buy by Amazon searches.
Where should you start? Focus on optimizing search rankings for products with low page traffic and high conversions first. Ranking higher in Amazon's search results is the key to more traffic and secure more purchases.
How? Getting your content right on Amazon is key to consumers discovering your products. The more convincing the content you present, the more likely your product will rise to the top of search results. Enticing product content such as images, videos, and product descriptions (Enhanced Brand Content) tempts shoppers into buying your products, boosting your conversion rate.
To reach an even better position in the search results, you need to understand Amazon's A9 Search Algorithm. Factors such as the degree of text match, price, availability, selection, and sales history all play a role in whether your product appears in a customer's search results.
So what is essential to know about the Amazon A9 algorithm?
- Amazon ranks your products based on performance, meaning sales velocity is a key performance indicator for the marketplace. The higher your sales velocity, the higher you will rank. The Amazon A9 algorithm analyses sales results and ranks products that sell better higher in the search results.
- Your Amazon listings need to be relevant: you want your products to match when a customer searches for specific keywords matching your product. Fill your product listing page with the information a shopper needs to make a buying decision, from keywords in your product title to attractive product descriptions with bullet points explaining all the product benefits. If your product pages are relevant, you will sell your products;
- Positive and authentic customer reviews and returning customers show Amazon you know how to make customers happy, and that's the most important thing for the marketplace.
What can you do to improve product ranking on Amazon:
- Optimize your product listings. Make sure you are aware of Amazon guidelines and follow them to the letter. High-quality images and relevant keywords in your product title combined with benefits will help you increase your ranking.
- Use Amazon A+ Content, also known as Enhanced Brand Content (EBC). This type of content allows you to edit product descriptions linked to ASINs. It enables you to describe and elaborate on your brand story, add more and better images, use comparison charts, and more. A+ Content helps you stand out from competitors and gain confidence from shoppers with attractive visuals on your product pages. As stated by Amazon, A+ Content even has the potential to increase your sales by 3 - 10%.
SiteLucents' content scorecards and visibility dashboards help you monitor and optimize your products' search ranking on specific keywords and Amazon category pages. Monitor the % of top positions where your brand shows up daily, precisely the top 3, top 10, and page 1 results.
By monitoring the visibility share of your brand on Amazon, you can:
- Identify keywords where your products perform well (or don't);
- Define the keywords for which you want to improve the search performance for specific products;
- Incorporate keywords in Amazon product page content and improve your brands' on-site search performance on specific keywords on specific retailers.
4. Amazon Advertising: Promote your Brands & Products
Promote your products with Pay per Click (PPC). Amazon PPC is an advertising model where you pay Amazon a fee every time a shopper clicks on your ad.
Amazon differentiates between three different forms: Sponsored Products, Sponsored Brands, and Sponsored Display Ads. The first two allow an advertiser to promote specific products or a brand and are shown above the search results or product detail page. Sponsored Display Ads are relatively new and deliver ads on Amazon and external websites to redirect shoppers to specific products on Amazon. Paying for advertisements on Amazon helps you raise your brand awareness and reach more customers. Since ads show up at the top of a search page, they cannot be missed by consumers scrolling through search results, offering an opportunity to introduce your brand to more and potentially new shoppers.
If we take a closer look at Amazon Ads, the average click-through rate - meaning the total number of clicks your ad gets divided by the total number of impressions - is 0.41%. The conversion rate on Amazon Ads is 9.55% (source: AdBadger). On average, compared to Amazon, other eCommerce websites have a much lower conversion rate: between 1 to 4% (source: Monetate).
Amazon Shopping Festivals
Running promotions during Super Brand Days or other shopping festivals becomes more and more vital. An increasing volume of sales comes on days such as Singles' Day, Black Friday, or King's Day in the Netherlands. Therefore, to stand out on that day is critical to your brands' ability to boost sales.
5. Important Amazon Metrics to Monitor Daily
5 important metrics you should keep an eye on daily:
- Amazon Assortment Coverage: Monitor your Product Coverage/ Listing Completeness, 3P sellers, Buy Box Rates, and benchmark competitors. Upload Amazon assortment lists to ensure you're carrying the right products and have stock available.
- Content Completeness Score: Use image Overviews that show you which images or image types are missing or incorrect. Measure your product content compliance with content scorecards. Zoom in on products with new, few, and negative customer reviews and star ratings with review distribution charts.
- Stock Availability Rates & Days OOS: Monitor stockouts and set up alerts on KPI and product level to the right person so you can quickly replenish inventory. Download daily Out-Of-Stock reports directly to CSV or create scheduled exports to your email.
- Selling Prices: Set up pricing alerts on product-level to detect sudden price drops and avoid Amazon price wars. Monitor price movements to gain better visibility into (unauthorized) 3P sellers, retailers, and competitors selling on Amazon.
- Share of Search: Track your brand's share of search by Amazon-specific keywords & category URLs.
Improving conversion rates on Amazon is a vicious circle. Better search rankings generate more traffic to your product pages, eventually creating a higher conversion rate, which improves the position in search rankings.
Maintaining a healthy and desired conversion rate is a continuous process. Therefore, you need to constantly monitor and know what is happening with your brand on the Amazon shelf, including Amazon listings from (unauthorized) 3P-sellers.
SiteLucents' eCommerce monitoring software gives you the data & analytics of your Amazon listings to protect your brands and drive digital shelf performances and Amazon conversion rates!
Do you want to see in action how SiteLucent can help drive your conversion rates? Book a free demo now!
TIP: Download our free Guide to Digital Shelf Optimization with advice to optimize search rankings, buy box shares, and conversion rates.