Improve Your Amazon Conversion Rate

Ryan Moffet

September 8, 2021

You’re selling an awesome product on Amazon, one that you’re really passionate about and that your customer base seems to love. Problem is you’re not exactly seeing the sales numbers you want to be seeing. You’re pouring funds into your ad spend to get your product in front of the right eyes, but it doesn't seem to be moving the needle. What gives?

The issue, dear Watson, can be traced back to your Amazon conversion rate.

A brand’s Amazon conversion rate is one of the most important metrics for its long term growth on the platform. When your conversion rate is low, it decreases the sales potential for your product, even if that product is the best on the market. A high conversion rate, on the other hand, gives your brand better organic rankings and a better ROI from your paid ads, meaning more sales and more money in your pockets.

A closer look at your conversion rate holds the secret to moving that needle.

What is your Amazon conversion rate?

Your Amazon conversion rate is the percentage of clicks on your Amazon ad that convert into sales. Essentially, your conversion rate shows you how many people are actually making a purchase directly after viewing your product listing. Knowing that number can help you pinpoint potential issues that may be getting in the way of your sales.

How do you find your Amazon conversion rate?

Finding your Amazon conversion rate is simple mathematics. It can be calculated with the following equation:

Conversion Rate = Orders ÷ Page Views (or Sessions)

To learn the conversion rate for your product, click into your Seller Central Business Reports, find the “By ASIN” category, and click on “Detail Page Sales and Traffic by Parent Item.” This gives you access to sales and sessions information for your product.

Amazon Business Reports Navigation

Amazon By ASIN Detail Page Sales and Traffic Column

Amazon Detail Sales Page and Traffic Table with nav column

From this page you can select the date range you are most interested in and scroll through the table until you see “Sessions,” “Units Ordered,” and “Unit Session Percent.”

Amazon detail page sales and traffic date range

Amazon Detail Page Sales and Traffic Table

Sessions are the number of visits to your pages by unique users. (If a user visits the same page multiple times within 24 hours, it will still be considered 1 session.) Units Ordered are the number of units sold, and the Unit Session Percentage is taking your Units Ordered and dividing it by the Sessions to give you the Unit Session Percentage, or conversion rate.

What is a good conversion rate on Amazon?

Now you know how to find your conversion rate, but how do you know if your conversion rate is good or bad? The best way is to stack it against Amazon’s numbers.

Amazon has some of the best conversion rates across all ecommerce marketplaces—that’s why brands are so attracted to selling there. On average, a good Amazon conversion rate for a non-Prime shopper is between 10-15%. That number drops to 3.32% among Top 500 merchants due to the nature of how often they are viewed. The conversion rate for Amazon Prime customers is even juicier, 74% in fact.

It’s important to note here that a good conversion rate does vary per product per niche. Items that are more expensive ($100+) will usually have lower conversion rates, because customers are more likely to shop around and compare these products to similar products before making a final purchase on Amazon.

A good conversion rate is also dependent on sample size. You might have 10 conversions out of 20 page views, for example, but even though your conversion rate is at 50%, you’ve still only made 10 sales, which isn’t great for your revenue. Whereas you may have 100 views with 20 conversions, making your conversion rate seem worse at 20%, but in reality it’s double the sales from the previous example.

What causes a low conversion rate?

If your conversion rate falls below average, it’s highly likely your listing, your ad campaign, or both, need some work, and there are several contributing factors you can look at.

Listing optimization

A common reason why conversion rates suffer is because product listings are lackluster or unclear. Maybe your primary image is a bit blurry or your image stack only has one or two photos, so customers don’t feel confident that they know what your product is like. You might have a title that is unclear or not specific enough, or a product description that doesn’t provide enough information. A customer may hit your page and be unsure what they are getting from your product, and choose to buy elsewhere.

On the flipside, maybe your product description is lost in clunky paragraphs. If a listing isn’t easy to read and detailed enough to earn customers’ trust in the product, they likely won’t read through the information and thus won’t make a purchase. Optimizing your listing could be a game changer in your conversion rate.

Reviews

Another factor that causes low conversion rates is bad or scarce reviews. Customers will feel wary that they’re going to have a bad experience with your product if they look at a listing and only see three stars on a product or negative reviews that have gone unaddressed by a seller.

Price

You may consider pricing as well. If your product is priced too high—and even if it’s priced too low—you’re less likely to make a sale. Too high and buyers will look for cheaper options, too low and you may communicate lower quality. You need to stay competitive to convert.

Advertising

Listings are one area where your conversion could be suffering. Ad campaigns are another. You may be bidding on the wrong keywords, or keywords that are far too general. Maybe you’re selling a crossbody women’s purse, but instead of bidding on “crossbody women’s purse,” you’re bidding on “women’s purse.” Your listing is going to get lost in the sea of search results that come up when a customer searches for “women’s purse,” and because it isn’t specific enough for your product, your conversion rate won’t be too hot. You’ll also waste money on advertising that could be leveraged on more productive keywords.

How can you increase your Amazon conversion rate?

Improving your conversion rate helps every element of your business, both directly and indirectly. When you have a high conversion rate, not only does it mean you’re making sales, it’s also an indicator that your product is popular, and Amazon algorithms will reward your brand by putting your listing higher up in search rankings, leading to even more sales.

To increase your conversion rate, you want to focus on making the shopping experience as clear and simple as possible for Amazon shoppers with high intent to purchase. The following are a few ways to do that.

Optimize your listings:

we mentioned this earlier, but how your listing looks is a critical element to how it converts. The first thing a customer looks at when scrolling through a list of products is the main image, title, and price, making these are crucial to get right.

Beyond that, your image stacks are incredibly important, especially as more shoppers go mobile. On a mobile device the first thing a customer sees when clicking on the listing is your image stack, and if they scroll just slightly, they see the buybox–no listing description or A+ content in site.

And it’s not just a matter of having an image stack–Since this may be the first thing a customer sees, you’ll want to make sure you have a thoughtful image stack with high quality images and, in some cases, instructional images that can help a shopper learn how to use your product. The quicker a shopper knows exactly what they’re buying, the better it is for your conversion.

Your images need to sell the product, not just show it. Have your images call out desirable features, show your product in action, use positive customer feedback in your graphics, answer FAQs, etc. You want customers to understand the pain points your product can solve for them just by seeing an image of the product at work.

But the image stacks showing first on mobile doesn’t mean you can ignore the description. Mobile customers will still scroll for more information, and desktop users will see the description right away. You’ll want to make sure the information you provide in the description is easy to read (easy to skim is even better). We recommend bullet points that expound on the info found in the image stacks.

Your copy should be tight, engaging, and informative, so shoppers can quickly get a sense of who you are as a brand and what your product can do for them.

Bid on specific keywords:

remember, you’re not trying to capture the attention of every single customer on Amazon. Not every customer on Amazon is looking for your product. You’re trying to capture the attention of customers who know exactly what they want and are intent on buying it. To that end, bidding on specific and unique keywords can help your product get to these customers quicker and use your ad dollars more efficiently.

Offer discounts:

shoppers are much more likely to purchase a product when they know they’re getting a good deal on it. Obviously, you won’t want to offer discounts all of the time, but a promotion here or there on a product can be a great way to give your conversion a boost. It helps you stay competitive and visible.

Leverage reviews (or “social proof”):

one of the reasons why a shopper doesn’t purchase a product when they visit a listing is because there isn’t enough social proof on that listing to persuade them that it would be a good idea. A way you can address that is to include standout buyer reviews in your copy, or be proactively addressing negative reviews. This will ease your potential buyer’s concerns and help them feel more confident that they’ll have a good experience.

Another social proof can be the badges Amazon adds to products: Amazon’s Choice, Best Seller, Climate Pledge Friendly, etc. are just a few of the banners that can provide added trust in your offering.

Create an omni-channel sales funnel:

another way to increase your conversion rates is by funneling sales from other channels, like Facebook or Instagram, to a landing page that then redirects that traffic to your Amazon listing. This gives customers the chance to really get to know your product off-site before visiting your listing to make a purchase. If they like what they see on your landing page and proceed to your listing, it’s highly likely they’ll convert. It’s a little more work, but it is a way to net high-intent buyers.

Improve your customer experience:

brands that provide customers with memorable shopping experiences, whether that be through their shipping, packaging, email campaigns, or customer service, are more likely to have higher conversion rates. They establish trust and generate excitement for their brand in a way that builds loyalty, and a loyal consumer base is a consumer base that converts.

Increase your Amazon Conversion Rate with Pattern

Maintaining a strong conversion rate on Amazon and other marketplaces is key for maximizing your success. A poor conversion rate can mean wasted spend and lost sales. If you’re already getting the traffic to your listing, it’s worthwhile to take a few extra steps and help that traffic convert.

At Pattern, we’ve got experts in design, advertising, and SEO all ready to help boost your listing’s conversion rate. Get in touch now to learn how.

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Variable Pricing Model: Best Strategy for Improving Amazon RoAS
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Variable Pricing Model: Best Strategy for Improving Amazon RoAS

In 2022, Amazon made $31B in ad revenue, revealing how its advertising business has become a profit center and essential for brands to drive traffic to their product listing with Amazon’s advertising products. Yet, success on Amazon shouldn’t always mean a higher ad spend–just a more strategic ad spend. 

We hear from executives that it is frustrating to spend so much on advertising on Amazon without a jump in sales.At Pattern, we’ve had success on Amazon for hundreds of brands using a variable pricing model to determine ad spend to help save a brand money and increase sales in the long run. Our proprietary technology helps brands figure out where to put their Amazon advertising dollars, and which investments will bring the best results. 

Here’s more about why variable pricing models work on Amazon:

What is the Amazon Variable Pricing Model? 

Everyone wants the best return on ad spend (RoAS) possible, especially on Amazon. A variable pricing model on ad spend means having the flexibility to adjust your ad spend and allocate the money to different areas. Variable pricing strategy requires solid data and information so you can make the best decisions that will lead you to an optimal RoAS.

Key Benefits of Using a Variable Pricing Model

  • Improved RoAS on Amazon

  • Increased knowledge for making strategic advertising decisions

  • Enhanced product content backed by data-driven insights

  • More up-to-date information on how to spend your advertising budget

  • Further insight into your true RoAS

  • Higher number of keywords you can win on

How Pattern Improves Your Amazon RoAS 

There are a lot of different opinions and ways to improve your Amazon RoAS, but one way we know that works time and time again is to vary your ad spend based on recommendations from comprehensive thorough and current data and research. 

At Pattern, we use our Predict™ software to run variable pricing models to help brands identify which keywords on Amazon they’re already winning and which ones to optimize and advertise for focus on optimizing and advertising for. 

For example, a brand selling socks for men and women on Amazon might put efforts into using the keyword “socks” for their product, but Predict™ software will help identify alternate and more efficient keywords to bid on– keywords such as  “women’s running socks” or “running socks for men”. 

Figuring out how to best utilize your ad spend can be a difficult and frustrating process. A lack of resources, reports, and data can lead to an inaccurate RoAS and false sense of success. As a top seller on Amazon, Pattern has helped hundreds of brands increase their organic rank by making better and more efficient use of their advertising spend using our Predict™ software

Pattern’s advertising goal is for your brand to increase your organic rank on only those keywords which you have the mathematical propensity to win. How can we know that propensity? Our proprietary data that helps predict where to put your ad spend. A variable pricing model helps brands to follow the ebbs and flows of selling on Amazon and constantly adjust their advertising strategy.

Looking to improve your RoAS on Amazon with a variable pricing strategy? Contact us. 

6 Executive Trading Problems on Amazon and How to Avoid Them - blog header
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6 Executive Trading Problems on Amazon and How to Avoid Them

At Pattern, we are constantly trying to better understand brands' performance and experience on Amazon through our research and marketplace data. Our latest Amazon Seller report uncovered common pain points executives faced throughout 2022 on Amazon in Europe and the Middle East. 

Not too surprisingly, there was more than one trading challenge for CEOs selling on Amazon in Europe and the Middle East. There were several top responses such as supply chain issues, advertising, and stock outs–all challenges we hear frequently from 1P Sellers on Amazon no matter the region.  

Here is what we learned about 1P seller trading problems on Amazon:

1. Getting Product into Amazon Warehouses 

Of the brand CEOs who took the survey, 52% mentioned this challenge–making it the most common issue for the second year in a row.  Basically, executives struggle with getting their product into Amazon warehouses, which typically happens because Amazon FBA can be difficult to navigate and comply with. Illegible barcodes, not labeling your products correctly, and a failure to include certain details on barcodes are all reasons your product could be rejected by Amazon FBA works. 

2. Increasing Chargebacks

51% mentioned increasing chargebacks on their products on Amazon, which occurs when brands fail to maintain stock levels or fulfill orders on time. As a 1P seller, if there are any issues with the products you send to Amazon, they will charge you for the time and effort it took for them to resolve those issues. 

Various types of chargebacks could include unauthorized use of credit cards, operational malfunctions (late arrivals, technical issues, etc.), and packaging non-compliance. In a 1P Seller relationship, Amazon will charge vendors with these chargebacks, and disputing them is typically a long, time-intensive, and costly endeavor for any brand.

3. Increasing CPC Costs for Amazon Advertising 

Increasing CPC costs for Amazon Advertising was mentioned by 45% of respondents as a top trading problem. Getting traffic to a product listing helps brands keep their inventory levels stable, so that they never have too much or too little of the product. Increasing CPC costs leads to a possible loss in traffic to a brand’s product, leading to fewer conversions and sales in the long run. 

4. Your Own Supply Chain Being Disrupted 

Sometimes it is not an Amazon issue, but an internal resource and capabilities scenario. 43% of respondents mentioned their own supply chain being disrupted as a common trading problem. Supply chains can be disrupted by a variety of factors, such as inventory order delays, supplier issues, shipping expenses, and problems with existing inventory. 

5. Inadequate Forecasting Methods to Keep Enough Stock in Hand

Many brands lack the resources and expertise to accurately forecast stock levels, according to 38% of the survey respondents. Inadequate forecasting methods can lead to high costs, non-competitive prices, and dissatisfied customers.

6. High Out of Stock Levels Due to Amazon’s Algorithm-driven Price Reductions

High out of stock levels due to Amazon’s algorithm-driven price reductions frustrated 37% of respondents in 2022. Amazon’s dynamic pricing strategy makes sure that the most competitive prices are being offered to shoppers. Low prices are great for shoppers, but sometimes stressful for brand executives. Amazon’s sudden algorithm-driven price reductions can catch a brand off-guard, leading to stockouts. 

Why Most Brand Executives Face the Same Challenges

Being in a 1P relationship with Amazon has its ups and downs—just like any relationship. One of those downsides includes the trading problems mentioned above. In a 1P relationship, Amazon buys your product wholesale and handles most of the selling details, which can be very beneficial in some ways, but may lead to less brand control on your end. Brand executives selling their products through Amazon in Europe and the Middle East face the same challenges that brands are facing world-wide–a lack of brand control and resources to succeed.

Trading problems are just one aspect of the challenges brands face as 1P sellers on Amazon. Learn more about these issues in the full Amazon Vendor Survey from 2022.

How to Avoid These Issues on Amazon

The good news about the trading challenges brand executives are facing as a 1P seller on Amazon is that they are all avoidable. In a 1P relationship, you’re constantly being forced to work around their erratic forecasts, limited communication, and changing priorities. But in a 3P partnership, you dictate inventory management, allowing you to stay in-stock, maintain control of forecasting, and plan for promotions or holidays.

With Pattern as your 3P accelerator, you can simplify forecasting and get inventory to the right place. You ship inventory to one of our warehouses, and we handle the rest—distribution across Amazon’s warehouse network for FBA, repackaging products into bundles, and delivering your orders on time.

Avoid the trading problems on Amazon by partnering with Pattern. Contact us. 

Discover more insights by downloading our annual Amazon Vendor Survey EMEA.

MAP Pricing vs MSRP: What's the Difference? (blog header)
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MAP Pricing vs. MSRP: What's the Difference?

“MAP” and “MSRP” are two of hundreds of acronyms floating around in the world of ecommerce, and they’re two of the easiest to confuse and misunderstand. While MAP and MSRP do play similar roles, they also have key differences that can work in tandem to support and protect your brand on marketplaces.

So what are MAP and MSRP and why do they matter? Here’s what you should know: 

What is MAP?

MAP (or minimum advertised price) is the minimum amount that a manufacturer or wholesaler recommends resellers advertise their products for. MAP pricing policy is essentially a one-way boundary you set to protect your brand, protect the margins of your resellers, and maintain fair competition across all of your distribution channels.

When setting a MAP policy strategy, remember the important things you’ll want your MAP policy to do are:

  1. Protect the interests of your brick-and-mortar resellers, giving them the margins they need to display and carry your product as well as sell it.

  2. Stay small enough that it discourages resellers from heavily discounting your products and keeps competition fair.

  3. Accurately reflects on the brand image and value you want to reflect.

“Advertising” and “recommends” are the key terms here. MAP policies should only recommend the price that is advertised online or in-store for a product, not attempt to fix the actual selling price of the product—that’s illegal—or recommend the actual selling price. That’s MSRP’s job.

Benefits of MAP

MAP not only keeps competition fair, but allows you to control your brand identity and promote consumer trust of your product and brand. Here are some of the benefits of having MAP policies:

  • Better brand protection and control

  • Creates a level playing field for retailers

  • Reduces bad customer experiences

  • Provides an accurate performance analysis

How Can Brands Effectively Enforce MAP?

It’s critical that MAP policies are structured in such a way that a brand avoids violating anti-trust laws. One way brands can effectively enforce MAP is by simply monitoring online product prices across digital channels to identify fluctuations in the market. 

At Pattern, we help brands not only develop a MAP policy, but also enforce it. Enforcing MAP policies and gaining marketplace control includes finding unauthorized sellers, which Pattern’s data finds. Once Pattern finds the unauthorized sellers, Vorys eControls (Pattern’s legal partner) steps in and handles the takedowns of unauthorized sellers, continuous enforcement of brand management, and reseller policy enforcements.

What is MSRP?

MSRP (or manufacturer’s suggested retail price) is how manufacturers standardize pricing across their resale channel and determine what price is fair for their product. The key difference between MSRP and MAP is that MSRP is the actual price manufacturers set and recommend retailers charge for their goods while MAP is the advertised price. 

MSRP doesn’t necessarily have to be the final price of a product—it’s most often a starting price—but it is determined by taking into account all of the costs associated with the distribution and manufacturing process for a product and the margin amount resellers need in order to make a profit. MSRP also establishes value. For example, if a brand wants to build a premium brand, the MSRP can reflect the actual or perceived value of their product.

Benefits of MSRP

Setting up an MSRP for your product includes the following benefits:

  • Maintains brand equity

  • Establishes brand and product value

  • Standardizes costs across marketplaces

How Can Brands Effectively Enforce MSRP?

Like MAP pricing, MSRP has to be set up as a one-way policy and not an agreement between a manufacturer and a reseller to avoid landing a manufacturer on the wrong side of the law. It’s a recommendation, not a contractual bind. As mentioned for MAP policy, Pattern helps brands effectively enforce MSRP with our proprietary data and expertise to protect their brand. 

How Do MAP and MSRP Work Together?

MAP and MSRP have different applications that may prove useful in different scenarios. For example, MAP policies are typically more useful in marketplaces where competition is fierce and price erosion happens easily if sellers are left unchecked. Ideally, however, MAP and MSRP are a dynamic duo that work together to serve the interests of your brand, support your resale channels, and protect your resellers.

Setting an MSRP establishes value for your product and lets your resellers know you’re serious about controlling channel conflict, maintaining pricing equity, and protecting their margins so they’re more confident setting pricing at the MSRP level.

MAP is the second half of setting a pricing policy. Setting a MAP price for your product, in addition to an MSRP, further standardizes pricing across your resale channel and gives legitimate resellers a fair environment to compete in while setting boundaries against unauthorized sellers harming your brand.

MAP combined with MSRP creates a stronger level of brand protection, giving your brand more sustainable, profitable growth.

Maintain Brand Control With Pattern

MAP policies can be tricky to draft, because there are so many legal lines to tiptoe around and so much nuance that goes into pricing. They can also be tricky to enforce without the right tools. At Pattern, partnered with Vorys, we have the tools and resources to help you maintain brand control on all marketplaces. 

As an ecommerce accelerator, Pattern can help you identify MAP violators and regain control of your brand online so that your image and your resellers are protected. To learn more, contact us today.