How to Calculate Conversion Rate on Amazon - Part 1

What is the Conversion Rate?

Depending on what action you want users to take, the conversion rate can indicate different things. If you want to calculate the conversion rate for email subscriptions, for example, divide the number of individuals who visit your site by the number of people who actually subscribe to your newsletter. The conversion rate is a metric used by Amazon to determine the number of page visits that result in a sale.

This is a crucial measure for several reasons:

• It provides you with a broad overview of the health of your listings.
• It improves the ranking of your product.
• It assists you in evaluating the outcomes of your listing copy A/B testing.
• It assists you in determining which areas require improvement.

A high conversion rate, on the other hand, does not always imply that your firm is performing well. Remember that one visitor who purchases your product means a conversion rate of 100%. As a result, rather than looking at the %, it’s still important to look at the actual figures.

Sites that sell a product or service often have a conversion rate of 1 to 2%. When it comes to Amazon, though, this number is substantially greater.

Amazon listings have a conversion rate of 10% to 15% on average. Prime members had an even higher percentage, over 74 percent. This is because many consumers who browse Amazon are already planning to buy something—if not right away, then soon.

Another reason why so many ecommerce retailers utilize Amazon as one of their platforms for selling things is because of this.

But probably the most essential reason to track conversion rates is that it is one of the variables that propels your listings to the top of search results. To rank listings, Amazon’s A9 algorithm takes conversion rates and sales velocity into account.

As a result, if your listing has a low conversion rate, your product is less likely to appear on the first page of Amazon search results.

Some Misunderstandings on How Amazon Calculates Conversion Rates

It’s disheartening to see intelligent people make poor decisions because they believe conversion rates are easy and straightforward. One of the most essential measures is conversion rates. They aid in the prediction of future production, the identification of bottlenecks, and the calculation of return on investment. It’s critical that you get them right.

Correctly calculating conversion rates is far more difficult than it appears on the surface. This is why a lot of individuals merely perform the bare minimum. They perform computations that appear to be true conversion rates and produce a credible amount, but they are just incorrect. Things can sometimes convert more than once. A single website visitor can fill out any form at the same time. 

Importance of Conversion Rate

One of the most crucial factors for a brand’s long-term growth on Amazon is its conversion rate. Even if your product is the best on the market, a low conversion rate reduces the sales potential of your product. A high conversion rate, on the other hand, means better organic rankings and a higher return on investment from sponsored marketing, which means more sales and money in your pocket.