Are you monitoring your Amazon conversion rates?
On Amazon sometimes it feels like everything is beyond your control, and you do not know where to start if your sales are not where you want them to be, or if your sales have slowed down.
A good indicator in identifying concerning issues on your Amazon listing is the conversion rate.
But what exactly does conversion rate mean?
It means the percentage of visitors to your listing who actually purchase your product, and it is important to monitor these rates.
This is important so that you can see what is the norm for your listing and to quickly identify if things are decreasing, or of course improving.
On Amazon a good conversion rate is 15%, an excellent conversion rate is 20%.
Sometimes it will dip down but look at the average over a month to even out fluctuations.
Why is your conversion rate such an important metric?
It is really important to do everything in your power to maintain a healthy conversion rate on your listings, because Amazon want to sell popular products. The higher your conversion rate is, then the more traffic Amazon will send to your listing and the opposite is also true. If your conversion rate drops then Amazon will send you less traffic.
Here’s where you go to find your conversion rates:
Go to Reports >> Business Reports
If you just have one product you can see your conversion rates from the Sales Dashboard under Business Reports >> By Date >> Sales and Traffic.
If you have more than one product then go to By ASIN >> Detail Page Sales and Traffic.
You can customise the columns on this report by clicking the columns tab and selecting the columns you need to see in this case we need :
- Parent ASIN
- Units ordered
- Unit session percentage
You can see that the conversion rate is the number of sessions divided by the units ordered.
You can select the date required and the results will show you the Conversion Rate AKA Unit Session Percentage.
In the image you can see that for these 3 products for the month of March we have conversion rates of:
If we compare that to the previous month February:
We can see there are fluctuations and we need to monitor these rates regularly to identify changes.
As part of my month end regular routines I compile a spreadsheet of conversion rates on a daily basis, so that I can note any big changes as we go along.
I customise my spreadsheet to also show coupon sales as well as organic sales, because if you are giving out coupons regularly that is going to skew your conversion rates.
The reason they will be skewed is because the people who click on your link who have a coupon code are all going to buy, as opposed to the potential purchasers who are still browsing, and a great percentage of whom may not buy.
So giving out a lot of coupons will make your conversion rate much higher, so it is a good idea to calculate the rate net of those coupons.
We talk more about this and I give you my entire system of sales monitoring for Amazon in my training course – “Counting On Sales – The Streamlined Seller System”
So I would recommend you monitor this for 2 months if you haven’t already been doing it so that you establish some benchmarks.
Then moving forward you can take some action to investigate discrepancies.
I have another post HERE on ideas for you to improve conversions on your listings, because after all, we all want to maximise our chances of sales on Amazon, so it is well worth spending some time to make sure your listings are optimised for conversions.