Becoming an Amazon seller involves persistent efforts and strategies. It is necessary to keep a check on important metrics regarding sales and improvise strategies accordingly to thrive in this business. This blog is all about Amazon Conversion Rate (CVR), an important metric that you must work on to improve your sales.

What is Amazon Conversion Rate?

Conversion rate is the ratio of the number of clicks converted to sales to the number of clicks. More conversion rate means more successful is your ad in promoting your brand. This means your ad is not just attracting traffic, but attracting the right traffic.

Conversion rate is used to measure the number of page visits that result in a sale.

How do you track your conversion rate?

On the dashboard, find the Reports category and click on Business Reports.
Under this Business Reports category, head over to the 'By ASIN' option and then select “Detail Page Sales and Traffic by Parent Item.”  You will now be provided with all the basic information regarding each product that you sell.
Next, find the “Total Order Items” field for the product you wish to calculate CVR for, and divide that number by your Sessions,    including those who left and returned.

Use the below formula to get the final conversion rate for that product:
       Conversion Rate = (Total Orders) ÷ (Total Product Listing Sessions)
The metric Unit Session Percentage also gives your conversion rates on Amazon. This option shows “how many items were purchased for the number of potential shoppers who saw the product.

You can register your account at Here, you can track everything related to your amazon selling business like your daily budget, number of views, number of clicks, ready pre-calculated CVR and CTR along with the complete details of your campaign.

By having the complete details of your sales, you will have the advantage of being able to scrutinize what is working out well and what is not. This way you can improvise your strategy to increase sales.


Why is keeping track of Amazon Conversion Rate important? 

- It helps you determine what areas need to be improved. For instance, you can check which keywords have a high conversion rate for a particular product. This way, you take the keywords that do not bring in more sales off the list and this alone saves hundreds of dollars.

- Keeping track of CVR is important to increase your organic ranking.  It allows your product to rank better. Therefore, if you have a low conversion rate in your listing, your product is less likely to be shown in the first page of Amazon search results.

- It gives you an overall view of your listings’ performance.


What can be considered a good CVR?

The average conversion rate on Amazon is roughly between 10% - 15%. Of course, like all metrics, these averages differ based on the kind of products you sell. Anything below an 8% conversion rate can be considered low and requires your immediate attention.
 Why is it important to have a good conversion rate?
ACoS, Advertising Cost of Sales, is how much you spend on advertising per dollar of revenue you make. You can calculate your ACoS with this formula: ACoS = Total Ad Spend / Total Sales.

A high Conversion Rate decreases ACoS. If the ACoS is less than your profit margin, this means you’re making a profit and you are losing money otherwise. The latter means there is still room for improvement in your strategy. If the ACOS is low, it means that the advertising cost is low but you are making good profits.

Usually, amazon ads are sponsored and the sellers are charged every time their ad is clicked. If too many buyers click on your ad and do not end up buying, you might actually end up losing more than you earn. This is why it is important that at least 10% of the visitors actually buy your product.

Improving Conversion Rate:

The majority of the buyers click your ad intending to consider purchasing your product but are not compelled to buy it, which indicates that there is still a need to improvise your strategies to increase sales. You can improve the conversion rate by observing and acting upon the factors that majorly influence CVR.  There are few factors that significantly affect your CVR.

- Keyword Demand
- Description
- Image
- Fulfillment by Amazon
- Badges
- Pricing
- Reviews
- Analyze


- Keyword Demand

If you are already into the amazon selling business, you would already know how important it is to choose the right keyword. But do you know how dangerous it is to choose the wrong one?
You can think of this from the buyer’s point of view. The user would search for something specific say, he requires earphones. He would rather be particular in what he needs, like whether they are air pods or other Bluetooth-enabled earphones. Suppose the buyer requires air pods while you sell regular Bluetooth-enabled earphones. If you include the keyword air pods just because of its high demand and search volume, the buyer might click on the ad but go back when he realizes you were just bluffing. This majorly affects your conversion rate as the majority of your ad clicks are useless.

How to find if a key word is a bad keyword?

- It is important to give keywords ample time to give you the desired results. But few keywords do not bring in sales despite giving them the time needed. You might actually end up wasting hundreds of dollars on such keywords. To avoid this, check the search term report and remove the keywords with a conversion rate of less than five percent.

- You can also manually check for irrelevant keywords and search terms and take them off your list.

- Repeat this campaigning process to improve your strategy and this depends on how long you want to keep doing this. As you increase your organic rank for the search term or keyword, your organic sales keep growing.

2. Description
The description of the product should aim to persuade the buyer to purchase your product. Optimized descriptions can skyrocket your sales.

- Keep the description neat, simple, and easy to understand.

- The description should contain all the key features of the product to help buyers make an informed decision.
- Try to put the description in bullets to make is easy to comprehend.
- It should be attractive enough to make a sale.

3. Image
Make sure that your image looks professional.  This would make your product look trustworthy at the first glance. Your ad image should emphasize the key details of your product.

- The image should also be of high quality to attract buyers.

- Amazon’s algorithm checks for white background. It is advisable to remove the background and replace it with a pure white screen.

- Take the picture from side angles to give it a 3-dimensional view.

- If you use images that are large enough, Amazon will enable a Zoom feature that allows customers to zoom in and scroll around your product. This is a great way to show off the detail and craftsmanship of your products.

- Usually, the image ratio is either a square 1×1 or a vertical ratio of 58×45. The optimum size for the square image is 2000px X 2000px. This way, the image can facilitate the zoom functionality without having resolution issues.

4. Fulfillment By Amazon

- As it is fulfilled by amazon, its name will be associated with your products and makes your product appear more reliable to the buyers.
- FBA ensures super-fast delivery. Who would wait for about a week when they can get it within a day or two?
- You will have access to new prime eligible customers. More than half of the shoppers are usually prime account holders.  Only the products Fulfilled by Amazon are eligible for Amazon Prime. Moreover, Prime customers spend twice more than regular customers. If there is a product that as good as yours in the listing, but you have an added advantage of Amazon Prime delivery, the buyer would choose yours without a second thought.
- Moreover, you even have the facility of MCF or multi-channel fulfillment that is you can ship your products outside amazon too. For instance, you can ship your products on other shopping websites like e-bay, etc.

5. Badges 

- When scrolling through Amazon products, the buyers always prefer to stop and purchase the products which have 'Amazon's Choice' or 'Best seller'.

- These badges make your product look more reliable and would definitely bring in more sales.

6. Reasonable Pricing
Needless to say, price is one of the most significant factors that the customers use to decide whether or not to consider your product. It also influences everything from cash flow to inventory.  Whether you incur a profit or loss is solely dependent on how you price your product. How does the product’s price affect your sales? If your product is too low priced, the chances that the buyers would assume it to be of low quality are highly likely. Likewise, if you overprice it many of them wouldn’t bother to spare a glance.

Now, the question is, how should you price your product?

You should check if the price is reasonable from both your and the customers’ perspective. Firstly, calculate all the costs involved like the cost of raw materials, shipping costs, and fixed costs. Do not forget to include the promotional cost as you will have to pay a certain amount to amazon in the form of PPC and keyword bids. Incorporate a certain percentage of profit margin. Sum up all of these to set your product price. Once you’ve decided on the price, view this from a buyer’s perspective. If you ever happen to come across this product as a buyer, would you consider buying it? You can even ask a friend or family for their views on the same.
Also, do not let the fear of setting up the wrong price hold you back from launching your product. Amazon selling includes a lot of learning from experimenting. Set a price, launch the product, and see how it goes.
7. Reviews
Depending on the reviews of your product, a customer would decide whether or not to spend money on your product. Usually, customers think of a product with more reviews as more reliable as buyers trust buyers.

The first headset has a rating of 4 out of 5 and it has 1,830 ratings while the second one has only six ratings. Though the latter has a slightly better rating of 4.5 out of 5, the first product looks reliable as it depicts the opinions of around 1800 customers.
8. Analyze 
To improve conversion rates, it is important to know where you actually went wrong. The analysis is the most important step that greatly increases your success in this field by checking what is and what isn't working out well for you. You can sign up on to not only track your CVR but also to have a thorough analysis of your sales.

This helps you scrutinize the minute details that you might have missed out.

Summing Up
Though conversion rate is not the sole factor that guarantees your success, it does contribute a major share in increasing sales. Hence, you must pay a lot of attention to track and improve your CVR.

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