How to Increase Your Amazon Conversion Rate | 9 Proven Tips

Every month, almost 50 percent of shoppers in the U.S. make a purchase on Amazon. With more than one million other small-to-midsize businesses (SMBs) on the platform, however, it’s a challenge for your business to capture those sales. If you want to improve your Amazon conversion rate, WebFX can help. Call us at 888-601-5359 or contact us online to learn how our award-winning team can help!

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1. Determine your conversion rate

Before you research how to increase your Amazon conversion rate, you need to determine your conversion rate. When you know your current conversion rate, you can use it as a benchmark for measuring the impact of your optimization efforts.

Calculate your conversion rate on Amazon with the following formula:

Total Number of Orders / Total Number of Product Listing Sessions = Conversion Rate

What is a good conversion rate on Amazon, though?

On Amazon, the average conversion rate ranges from 10 to 15 percent. Whether your company has a below average, average, or above average conversion rate, you should try to improve your conversion rate.

With a proactive approach to improving your conversion rate, you can pull ahead of your competition. The result is more sales and revenue for your business, which can help your company launch a new product, hire a new team member, and more.

2. Highlight your product’s benefits

If you want shoppers to buy your products, then you need to show how your product benefits a user. Focusing on the features of your goods, instead of the benefits is a common misstep for businesses on Amazon.

You need to demonstrate how a product can help a shopper. Get started by answering these questions:

  1. What problem does our shopper have?
  2. How does our product resolve that problem?
  3. What makes our product a better solution than our competitor’s?

Once your team answers these questions, you can start revising your product listings. Update your product features, as well as your product description, with user-focused content. Use your product features and product description to demonstrate the unique benefits of your product.

As an example, look at the product features for a power tool.

A screenshot of product features on Amazon

Let’s break the product features down, and show how they highlight item features and benefits:

  1. Ergonomic design (a feature) makes for a lightweight tool (a benefit)
  2. Built-in LED (a feature) offers better visibility (a benefit)
  3. Combo kit (a feature) provides everything needed to use the product (a benefit)
  4. One-handed bit loading (a feature) helps users change bits fast (a benefit)
  5. High-performance motor (a feature) makes for versatile applications (a benefit)

If you need inspiration for how your product helps shoppers, look at your product reviews.

3. Update your product photos

No matter where people shop online, they depend on product photos, which can show:

  1. What your product looks like
  2. How your product works
  3. How people use your product
  4. What comes with your product

If your product listing features only a few images or low-quality and outdated images, it can drive users away. In most cases, they won’t abandon their product search. Instead, they’ll view related products, sold by your competitor.

Improve your product conversion rates on Amazon by investing in professional product photography.

With professional product images, your business can provide shoppers with all the information they need. For example, a picture can help users determine the size of your product. Photos of your product can also give shoppers new ideas for how to use it.

Plus, professional product images can demonstrate the quality of your product and brand.

If your company invests in professional product images, make sure they adhere to Amazon standards.

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4. Optimize your product listing

How else can your company increase your conversion rates on Amazon? Optimize your listings. Even if your business already uses search engine optimization (SEO), it’s worth reevaluating your strategy to discover new opportunities.

Not familiar with optimizing your products with SEO?

Amazon SEO helps improve the visibility of your products in search results on Amazon. For example, if someone searches for “power tool set” and that’s what your company sells, it would make sense that you’d want your product to appear in that search result.

A screenshot of Amazon search results

If your business doesn’t show on the first page of search results, it can have a direct impact on your conversion rates. Research shows that 70 percent of shoppers on Amazon do not go past the first page of search results.

They find what they want on that first page, which is why Amazon SEO is essential.

How do you optimize your products on Amazon, though? Just follow these steps:

  1. Research keywords or searches relevant to a product
  2. Set the appropriate category and sub-category for your product
  3. Include the targeted keyword in your product title, features, and description

With a smart Amazon SEO strategy, you can improve your ranking and conversion rate.

5. Keep your pricing competitive

Amazon wants to provide shoppers with the best experience and prices possible. That’s why Amazon considers the total cost of an item when ranking products in search results. If a business charges too much or too little for their products, it can serve as a negative signal.

Price can also contribute to your company winning or losing the Buy Box.

Since price influences not only the decision of consumers but also Amazon, it’s critical for companies to keep their product prices competitive. Businesses often streamline product repricing by using software, like Informed.co or RepricerExpress to monitor competitor prices.

With a competitive product price, your company can earn a few advantages, including:

  1. A higher ranking in search results
  2. A Buy Box
  3. A user-friendly price

These benefits can all contribute to a higher conversion rate, as your product is more visible to users.

6. Make your products Amazon Prime eligible

Amazon features more than 100 million Amazon Prime members, and they all love to use their Amazon Prime benefits, including free two-day shipping. On Amazon, users can even filter products to exclude items not eligible for Amazon Prime.

If your company wants to maximize its conversion rate, then it’s worth considering Amazon Prime. When your product becomes eligible for Amazon Prime, it expands your consumer base. This expansion can contribute to more page views, purchases, and revenue.

How do your products become Amazon Prime eligible?

Your business can offer your goods with all the benefits of Amazon Prime with Fulfillment by Amazon (FBA). This service, which includes fulfillment and storage fees, shifts all order fulfillment and return responsibilities to Amazon.

With FBA, your company can not only increase your conversions but also decrease your responsibilities.

7. Promote your products with PPC

Pay-per-click (PPC) advertising is another technique for increasing your Amazon conversion rate. With PPC, your company can create ads for your products and brand. Plus, you can maximize your real estate in search results, as paid ads appear at the top of search results.

A screenshot of Amazon PPC ads

Amazon offers a few advertising options, including:

  1. Sponsored Brands, which advertise three products and appear at the top of search results
  2. Sponsored Product Ads, which advertise one product and appear above organic search results
  3. Product Display Ads, which advertise one product and appear on product detail pages

If you decide to increase your conversion rate on Amazon, it’s essential for your team to keep your Advertising Cost of Sale (ACoS) low. A high ACoS can cut into your profits, which doesn’t benefit your company’s bottom line.

The advantage of PPC ads, however, is that your business only pays per click. You don’t pay for impressions, or when a shopper sees your ad. This feature can help your team maximize your ad spend and improve your return on investment (ROI).

8. Evaluate your competition

When businesses ask, “How can we increase our conversion rate on Amazon?” they rarely consider a competitor analysis. With a competitor analysis, however, your team can gain tremendous insight into what’s working when it comes to driving sales on Amazon.

Assess a few of your Amazon competitors with these steps:

  1. Audit their product listings
  2. Investigate their branding
  3. Read their product and seller reviews
  4. Review their keyword strategy
  5. Check their prices
  6. Analyze their ad campaigns

If you want to go a step farther, you can also estimate the monthly sales of your competitor. Jungle Scout and Sellics both offer tools for calculating a seller’s average monthly sales. While Jungle Scout provides a free tool, Sellics requires a subscription.

A screenshot of a sales estimator tool for Amazon

Use what you learn about your competitor to inspire your strategy.

For example, maybe your competitor analysis reveals some high-value keywords that you decide to target. Or, you discover a common complaint in competitor reviews, like a poor warranty, and update your product description and features to emphasize your company’s advantage.

A competitor analysis may not lead to an immediate increase in conversion rates. It can, however, help your business create a stronger strategy for marketing and advertising your products on Amazon. That can result in tremendous long-term gains.

9. Increase your number of product reviews

From a user perspective, as well as product optimization viewpoint, reviews are invaluable. For shoppers, they offer unbiased insight on your product’s quality. Meanwhile, Amazon uses reviews to rank and recommend the best products and sellers to users.

If your company wants to increase its conversion rate, invest in review management.

Use review generation services approved and managed by Amazon, like Amazon Vine™ and the Early Reviewer Program, to earn more reviews for your products. While both programs require a financial investment, they can help generate essential reviews for new inventory.

In addition to working to earn more product reviews, your team should also respond to reviewers. Whether someone had an excellent or poor experience with your product, you need to respond and remedy any problems.

This proactive step can help your business build brand awareness and brand loyalty. With better brand awareness and brand loyalty, your company can improve its bottom line. For example, a loyal customer may recommend your product while another shopper may decide to purchase your product.

Need professional help improving your Amazon conversion rate?

With more than $1.5 billion generated in client revenue in the past five years, plus a client retention rate of more than 90 percent, WebFX is a trusted choice for businesses on Amazon. With our decades of expertise, plus a team of 200+ digital marketing professionals, we offer unmatched service.

Learn more about our custom advertising and marketing strategies for Amazon today! Just contact us online or call us at 888-601-5359!

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