14 Ways To Improve Your Amazon Conversion Rate

Remember when we had to “quarantine” for a few months back in 2020? And remember how much Amazon shopping we were doing while locked inside?

At that time, e-commerce and Amazon businesses were thriving, and we also had zero percentage interest rates in the US. Money was cheap, and after the initial stock market downswing from COVID and lockdowns, the e-commerce economy was picking back up.

Here is snapshot of the S&P 500 recovery after COVID:

This boom phase slowed down when the FED pivoted to higher interest rates to combat inflation. As this transition happened, there was a shift from a “top-line” revenue mentality to a “bottom-line” profitability mentality among e-commerce brands, especially Amazon sellers.

This shift changed the way brands approached KPI’s and goal-setting. Brands started focusing more on KPI's like cost-per-click (CPC), return on ad spend (ROAS / ACOS), and conversion rate (CVR).

Our customers' demand for improving profitability grew, so we started testing everything to see what worked. We tested different main images, product titles, advertising content, promotions, listing images, Amazon Posts, keyword targeting, and much more.

After months of testing and learning what improves a product's conversion rate on Amazon, we noticed something fascinating:

• Improving one brand’s CVR from 10% to 11% increased profit by 17.5%
• Improving another brand’s CVR from 5% to 8% increased profit by 73.3%
• Improving a different brand’s CVR from 3% to 3.7% increased profit by 30.5%

These results are obviously dependent on each brand’s unique profit margin and advertising costs, but the takeaway was the same:

Conversion rate is an extremely high leverage tool for increasing your take-home profit.

This was great news for both the brands who wanted to focus on profit AND the brands that wanted to grow aggressively.

Our profit-focused brands made more money, while our aggressive-growth brands found new margin they could reinvest into advertising, inventory, new products, etc.

In this blog, I’m going to walk you through what conversion rate is, why it’s so important, and how you can improve it:

First, what is conversion rate?​

In e-commerce, the term "conversion rate" represents the percentage of visitors to your Amazon listing page who complete a desired action, such as making a purchase.

Let’s look at a simple representation of an Amazon customer’s 3-step journey to buying:

1. Impressions turn into clicks
2. Clicks turn into orders

It’s pretty much that simple.

Your conversion rate is the percentage of “click-people" that turn into “order-people."

So if 10 people click, and 1 person orders, your conversion rate (CVR) is 10%.

CVR serves as an indicator for how effectively you can turn potential customers into actual buyers. It also serves as an indicator for how effectively you can target the right people that actually want to buy your product and not something else.

​Why is improving conversion rate important?​

Improving CVR is important because Amazon is a pay-per-click world. We pay for clicks hoping that the orders generated produce enough profit to outweigh the cost of advertising. Optimizing CVR can have a dramatic effect on your profit.

Let’s make a few assumptions to show how important CVR can be on your profitability:

• Average Cost-Per-Click (CPC) = $1
• Average Order Value (AOV) = $50
• Gross Profit Margin = 50%
• Gross Profit Per Order = $25

If 10 people click at a 10% CVR, this is what happens. Focus your attention on CVR and net profit:

• 100 clicks * $1 CPC = $100 ad spend
• 10% CVR * 100 clicks = 10 orders
• 10 orders * $25 gross profit per order = $250 gross profit
• $250 gross profit - $100 ad spend = $150 net profit
  

What happens if we can improve our CVR from 10% to 11%?

• 100 clicks * $1 CPC = $100 ad spend
• 11% CVR * 100 clicks = 11 orders
• 11 orders * $25 gross profit per order = $275 gross profit
• $275 gross profit - $100 ad spend = $175 net profit
  

Just by improving CVR from 10% to 11% (getting 1 more order for every 100 clicks), we increased our net profit by 16.6%.

CVR is a key metric for improving sales, profitability and ad spend efficiency.

Now let's look at how you can actually improve it.

​What factors can we influence to improve conversion rate?​

As you saw above, conversion rate looks at the lower 2 parts of our simplified 3-step Amazon funnel: clicks and orders.

When 10 people click and 1 person orders, we get a 10% CVR:

In this example, why are 9 people not buying, while 1 person is buying? Three things are happening:

• Some of the 9 click-people aren’t interested in this type of product
• Some of the 9 click-people ARE interested in this type of product, but weren’t compelled by the listing page
• Our 1 order-person was both interested in this type of product AND compelled to order by the listing page

So – to improve CVR, there are only 3 things we do:

• ↓ Clicks from uninterested shoppers
• ↑ Clicks from interested shoppers
• ↑ Orders from interested shoppers

We can simplify this:

• ↑ the % of clicks from interested shoppers
• ↑ orders from people who click

Let’s look at what factors we can actually influence in the search results (for clicks), and what factors we can influence on our listing page (for orders).

What can we influence in the search results?

• Product Title
• Main Image
• Review Score / Review Count
• Prime / Promotions
• Prime-Eligible Badge
• Keywords Targeting (what searches you advertise on)
• Sponsored Brands Headline (Logo, Headline, Image)
• Sponsored Brands Video (Video)

What can we influence on our listing page?

• Product Title
• Bullet Points
• Listing Images
• Listing Videos
• Review Score / Review Count
• Prime / Promotions
• Variations
• Return Frequency (automated section from Amazon)
• Brand Story
• A+ Content
• Amazon Posts Section
• Videos Section

14 ways to improve your conversion rate.

How to ↑ clicks and ↑ orders at the same time:

​Below are 4 factors that help you drive more interested clicks AND compel shoppers to buy at the same time:

1. Better Review Score and More Reviews

Having both a good rating and many reviews shows that others like your product and that your listing is credible. 100s and 1000s of reviews can't be faked overnight on Amazon. When shoppers see that many others are happy with what they bought, they feel more confident buying it too. This means more people will click on your product and buy it.

More reviews and a better rating makes your product stand out as the obvious choice.

2. Promotions, Coupons, and Deals (Attractive Pricing)

Everyone loves a good deal! When you offer discounts, coupons, or special prices, more people will want to click on your product. These deals make shoppers feel like they are getting something special, which makes them more likely to buy. Promotional badges on Amazon also have a bright red, green, or blue background that visually catches shoppers' attention.

3. Improve Your Amazon Advertising Content

Unlike a main image, your advertising content can actually help convert a customer directly from the search results. Sponsored Brands Headline, Sponsored Brands Video, and even Sponsored Display allow you to use custom imagery and video content in the ad placement. Good ad content will drive clicks and sell the product directly from search.

Examples of ads that help sell the product before a customer even clicks.

4. Become Prime-Eligible with Amazon FBA

When your product has the Prime badge, it means fast and free shipping for Prime members. Shoppers love getting their items quickly, and they trust Prime. This makes them more likely to click on your product and buy it because they know it will arrive soon and without extra shipping costs.

In addition to option 1 having the Prime badge advantage, it also has 75,000 reviews, a much lower price, and an active promotion badge.

​How to ↑ the % of clicks from interested shoppers‍

​Below are 4 factors that help you get less clicks from uninterested shoppers and get more clicks from interested shoppers:

5. Better Communicate Your Product with Your Main Image

Your main image is the first thing shoppers see. When it clearly shows what your product is and highlights its best features, it attracts the right people who are looking for exactly what you are selling. This means more interested shoppers will click on your product and uninterested shoppers know this product is not for them. In addition to improving conversion rate, this also prevents uninterested shoppers from accidentally buying, returning, and then leaving a 1-star review.

Spindrift is selling a 24-pack of water, but neither their main image nor product title shows or mentions this. IZZE, on the other hand, has made this very clear in both.

6. Better Communicate Your Product with Your Product Title

A good product title tells shoppers exactly what your product is. By including important details and keywords, you help the right people find your product. This way, those who are truly interested will click, and others who aren't won't. See the previous example of IZZE vs Spindrift.

7. Make Your Main Image More Attractive and Attention-Grabbing

A bright, clear, and attractive main image stands out and catches shoppers' attention. When your image looks good and stands out in search, it makes people curious and more likely to click, especially those who are looking for something like your product. You can take advantage of the full image real estate, use bright colors, add elements like ingredients around your product, etc.

The first listing has bolder contrast, shows the product in use, adds a pop of color with the iPhone and Apple Watch screens, and fills more of the image real estate compared to the second listing.

8. Improve Your Keyword Targeting Relevance

Advertising on the correct keywords means your product shows up on relevant searches. When you advertise for keywords that match what people are looking for, you better target the shoppers who are interested in buying your product. This means fewer clicks from people who aren't interested and more clicks from those who are.

How to ↑ orders from people who click‍

Below are 6 factors that help you convert more of the people who click on your product and visit your listing page:

9. Improve Product Copy & Sell the Benefits

When the text in your bullet points, images, videos, and A+ content clearly explains how your product helps the buyer and why it's great, people are more likely to buy it. Focus on the benefits and make it easy to understand why your product is the best choice.

10. Fill All the Listing Content Placements Amazon Provides

Using all the content options Amazon gives you can make your product listing look more complete and trustworthy. Add all 7 images, a product video, 5 bullet points, an Amazon Brand Story, and Premium A+ Content. Additionally, you can unlock the Amazon Posts section and hire influencers to make video reviews of your products. This helps show customers everything they need to know to feel confident about buying.

11. Higher Quality Images & Videos

High-quality images and videos help shoppers see exactly what they are buying. When people can clearly see the product and its features, they feel more confident making an order. Show the product from different angles and in-use to give a complete picture.

The image on the left is higher quality and shows a better angle of the product compared to the image on the right. The product itself is also larger on screen, making it easier to view (especially on mobile devices).

12. Optimize Your Listing for Mobile Screens

Recent studies show that over 50% of orders on e-commerce are made from phones, so it's important that your product listing looks good and is easy to read on a small screen. Make sure your images are clear, your text is easy to read, and the layout is simple and user-friendly for mobile shoppers.

13. Create Intuitive Variations

Offering different versions of your product (like different colors or sizes) in a way that's easy to choose from helps shoppers find exactly what they want. This makes it more likely that they'll find the perfect option and decide to buy. If you have 20+ variations on a listing, or the variation structure doesn’t make sense, you will confuse shoppers and they will go back to the search results after you paid for their click.

14. Lower Your Return Rate

Amazon now adds a message to listings with exceptionally high and exceptionally low return rates. If your return rate is so high that Amazon adds this message to your listing, it will dramatically hurt your conversion rate and profitability. On the flip side, if very few customers return your product and Amazon adds the positive, "customers usually keep this item" message, this will boost shoppers' confidence in ordering and improve CVR:

With so many options, where should you start?

Improving your Amazon conversion rate can seem overwhelming, but starting with the right steps can make it easier. Here’s a priority order to guide you:

‍
1. First, sell using Amazon FBA to be Prime-eligible.‍

Becoming Prime-eligible means your product will have fast and free shipping, which shoppers love. This makes them more likely to click on your product and buy it.

‍2. If you’re already selling with FBA, and your product has under 30 reviews, enroll 30 units into the Amazon Vine program.‍

Enrolling in Amazon Vine will help you get 30 honest reviews within 4-8 weeks for just $200 and the cost of goods for 30 units. More reviews build trust and encourage more people to buy your product.

‍3. If you have done both of those, make sure you fill all the content placements that Amazon gives you:

• Product Title
• 5 Bullet Points
• 7 Listing Images
• Product Videos
• Amazon Brand Story
• Premium A+ Content
• Amazon Posts section

‍4. After you do these first 3, focus on (1) increasing the % of clicks from interested shoppers. Then focus on (2) getting more orders from people who click.‍

Start by making sure the right people are clicking on your product. Then, work on convincing those who click to place an order. This step-by-step approach will help you improve your conversion rate effectively.

I hope you got value from this blog post!

If you'd like to keep learning more about selling on Amazon, check out our blog and subscribe to our YouTube channel.