How to Stay Competitive on Amazon With Conversion Rate Optimization

 

One of the biggest challenges today for Amazon sellers is to stay competitive on the giant and expanding e-commerce platform. Every retailer is trying to find the best possible way to fight for their spot on the first page of Amazon, and this isn’t achievable without a good advertising strategy. The primary goal of every advertiser is to discover the most relevant keywords that will bring sales with high profitability.

In this blog post, you’ll find out one of the ways to choose keywords that can increase your revenue while maximizing profitability. 

Keep reading to learn more about conversion rate optimization!

What is a conversion rate?

Conversion rate or CVR is a percentage of conversions (orders) relative to the number of clicks for a particular keyword.

 

 

For example, if a customer clicks on one product 20 times and buys five shampoos for the keyword “red hair shampoo,” the conversion rate for this keyword is 25% (5/20=0.25).

If a person clicks on the product once and buys two products, the conversion rate is 200% (2/1=2).

Now that you know what CVR represents, let’s continue toward conversion rate optimization.

Where can you check the conversion rate?

As we have already shown, you can easily calculate a conversion rate. Still, if you want to save time, you can find the conversion rate for each keyword used to advertise your products in the Advertising Report section.

For Sponsored Products – Targeting Report and Search term report

 

 

For Sponsored Brands – Keyword Report and Search term report

 

 

For Sponsored Display – Targeting Report

  

What is a good conversion rate?

It’s hard to say what a good conversion rate is, as it can vary from seller to seller and product to product. Also, depending on the value of CPC (Cost Per Click), Search Volume, Views, Product price, etc., for some sellers, the keyword can be profitable with a lower CVR. For products where competition and CPC are both high, a good conversion rate is higher.

The average conversion rate ranges from 10%-15%. However, as already mentioned, this metric varies depending on the type of product you sell. A conversion rate below 8% is considered poor. So, ‌take appropriate action as soon as possible. A low conversion rate can signal an issue with the product, product listing, price, customer reviews, or many other factors. 

This brings us to conversion rate optimization. 

How to increase the overall conversion rate?

Given that there are different reasons why a low conversion rate may occur, you can take various measures to increase this metric.

Consider if your product meets your customers' needs and whether your competitors have a better offer. Also, evaluate if you can adjust your product’s price or characteristics.

Afterward, check if you can improve the product listing. This includes the title, images, product description, A+ content, reviews, etc.

If you use many keywords for advertising your product, you can increase the overall conversion rate by pausing all keywords with a low conversion rate. You need to be very careful here so that there is no drastic reduction in sales. 

It is necessary to calculate which conversion rate is acceptable to you and consider other metrics such as ACoS, Impressions, Search volume, etc. If a keyword has a high ACoS and a low conversion rate, you should pause it.

Conclusion

CVR is one of the metrics that can tell you how successful a keyword is but don’t ignore other indicators.

As we mentioned in this article, a good CVR is not the same for everyone. Besides the value of CVR, the most important indicator of productivity to observe is ACoS. You can easily achieve excellent account results, improve product rankings, and reach greater profitability by considering both metrics. 

If you have a lot of keywords with a very low CVR, you have a lot of clicks and very few orders. Also, a low conversion rate may indicate that the product's keyword is not relevant enough or some competitors have a better offer. 

In that case, your sales decrease further, and the product gets bad reviews. All of this can significantly jeopardize your success on Amazon. Therefore, take immediate measures for conversion rate optimization and ensure that you are on the right path to improvement.

If you need help with this task and other aspects of advertising on Amazon, we invite you to learn more about our Amazon PPC service. Visit our website, where you can book a free consultation as well!

About the author

 

Tijana Bogdanović is a Senior PPC Specialist at Sellers Alley and has three years of experience in Amazon PPC. Ever since she joined the team, she has shown excellent leadership skills and willingness to learn and expand her knowledge. These attributes helped her develop further and achieve significant results with Sellers Alley. Her previous work experience with Google Ads enabled her to adapt to the Amazon world with ease.