Turbo-Charge Your Revenue!
You’ve probably already considered selling on Amazon but its way easier than you think.
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Two primary goals of every online business owner are to make as many sales and as much profit as possible. It all starts with choosing the right e-commerce platform. On each platform, businesses face different challenges and must deploy the right formula to be successful.
For an online business on Amazon, there are a lot of factors that dictate how much or how little revenue is generated. For new Amazon sellers, and even some experienced ones, the process of coming up with a recipe for selling successfully and increasing conversion rates can be elusive and somewhat frustrating. This article will provide some of the most important considerations about Amazon conversion rates and how to increase them.
The idea behind calculating a site or product's conversion is quite simple. A lot of online business owners tend to get carried away with getting online traffic. It can be exciting to find out your site or page is getting thousands of views. It shows that your hard work is paying off.
While traffic numbers are unquestionably important, they do not necessarily translate into revenues. Visitors can come to your site but never engage in any conduct that actually generates revenues. So, the real question is: How many of those visits end up as sales?
When the number of site visits is compared to the number of sales, a site owner can understand what proportion of visitors are actually creating revenues. Simply put, that proportion is what is known as conversion rate. The conversion rate is calculated by dividing the number of sales by the number of visits to a product page, landing page, or website.
Successful businesses not only work hard to drive traffic to their sites, but they also work equally hard to turn as much of that traffic into revenues as possible, meaning that they are continuously engaged in the process of increasing their conversation rates.
At the same time, the conversion rate of a page should not be viewed in a vacuum. It’s not a one-size-fits-all. For instance, a lower dollar value product may have a higher conversion rate than a higher dollar product, but still, be less profitable. The point is that the conversion rate, in and of itself, will only give part of the picture. There are a number of important metrics on which every business must concentrate, and those metrics can be, and many times are, different depending on the business, the industry, and the economic climate.
Keep in mind that the average online business has a conversion rate as low as 1% to 2%. But, as we’ll discuss below, that rate can differ significantly depending on the sales channel. Therefore, it is important to set your business objectives accordingly.
Amazon is currently one of the most visited websites in the world with a presence on a global scale. The average conversion rate on Amazon is generally higher than those of other e-commerce sites. This is based on a variety of factors, among them Amazon’s positioning and branding of itself as a platform, the shopping experience, as well as, the shopper profiles that it attracts. It is currently one of the most visited websites in the world with a presence on a global scale.
Due to its sheer size, Amazon is essentially its own economy, the Amazon conversion rate for businesses can range across a wide spectrum. A seller’s conversion rate on Amazon is among the factors that help that seller rank higher for searches on their selected keywords. Higher rankings are one of the key drivers of increased online business revenue, as much, if not more, on Amazon as any other search giant or marketplace.
You can find your Amazon conversion rate in the Reports section of your seller dashboard.
While Amazon is a highly competitive platform, there are steps you can take to rank high in searches, beat your competitors, and in turn, increase your sales and profits. Here are some of the steps you can take to help you achieve that:
It is important to keep in mind that as you implement these steps, there are similarly basic strategies and plans and a number of more advanced ones that can be added. In order to increase revenues and profits and stay ahead of your competition, you must continue to add to your marketing and sales toolbox.
While sellers have worked hard at bringing the benefits of the in-store shopping experience to their online stores, shopping online is still distinctly different from shopping in a store. For one, as the buyer does not have the opportunity to physically inspect and work with the product, there is a degree of hesitation in pulling the trigger on a sale. Shoppers typically want to be secure that the product that they’re buying is what they’re actually looking for.
While this is a primary reason to use hi-resolution pictures (and videos where possible), it certainly is not the only one. Equally important is the ability to distinguish your products from other online competitors. Pictures and videos should show the product from different angles and highlight the features that shoppers are seeking.
Where appropriate, it is important to have visuals that show front, sides, back, underneath, just the way a buyer would look at it if they were in a store. A product's picture can either convince a buyer to make a purchase or turn them off completely.
The importance of this point cannot be overstated. And though it may seem obvious, it is commonly neglected by sellers. In addition to superior visuals, the best way to convince shoppers that your product is worthy of their attention, and more importantly, their dollars, is the description. It is important to describe your product stressing its important features and informing them how it will address the pains that they face.
Clear product titles attract buyers, while the product description tends to seal the deal. Your product title and description should answer key questions like What is this product? What does it do? Why should I buy it? How does it help me? Is this one better than similar products?
The product title should contain important details: First, the Manufacturer, Company, or Brand name. Next, the flavor, variant, or color. After that comes the quantity or size. Finally, the product name. For instance, if this website sold shoes, the product title would look like this: Eplaybooks Red size 40 shoes. The intention when you are writing your product title is to answer all of the commonly asked, key questions that enter the buyer's mind about your product.
Similarly, creating the best description can be challenging, and as with the title, the Amazon ecosystem and shopper behavior present unique factors for sellers to consider and implement. Simply put, a good description should provide the benefits of the product, the qualities that address and resolve shoppers’ pains. Be careful not to simply repeat the product title. The title tells the shopper what your product is. Instead, your description should complement your title by telling buyers how your product helps them -- the pains that it resolves for them. Use adjectives that show your product in the best light.
Using the Eplaybooks shoe example, the product description should contain narratives like this:
It is important to note that your description doesn't have to be perfect, it just has to answer key questions. If a buyer were to browse through two pages with the same product and price, they would most likely pick one that best describes the product, answering as many of the questions that they have regarding various features that are desirable to them.
Another great way to optimize your description and title is to use keywords. Your keywords get you in the search rankings. They are a major factor that determines if buyers will get to your page through searches on Amazon. Amazon's algorithm doesn't rank for multiple uses of keywords. Rather, it ranks for conversion rates for pages with those keywords. You can learn more about how keywords work on Amazon here.
Another strategy for increasing sales and revenue is to set your prices to attract buyers. Great prices ensure that a customer will stay on your product page longer. A great way to fix product prices is to use Amazon repricing software. Repricers both automate and take the guesswork out of many of your pricing needs.
Another pricing strategy to increase online business revenue altogether and on Amazon, specifically, is to offer discounts. Shoppers love discounts. Simply knowing that an item is normally priced at a higher amount and that they are obtaining a discount commonly triggers purchasing decisions -- many times, it’s the main catalyst for a purchase.
The logistics involved in running an eCommerce store can be daunting, and something that business owners commonly underestimate. In fact, logistics commonly are a primary factor for shopper decisions. Additionally, if not properly managed, they can make business operations cost-prohibitive.
Sourcing for products, inventory, storage, packaging, and shipping are all essential parts of running an online business.
Fulfillment by Amazon is a program that does the bulk of this for you at a price. All you have to do is register and send your products to an FBA center. Products under the FBA program are eligible for free shipping and are also displayed with the Prime logo.
The Prime logo not only has meaning in terms of delivery cost, but it garners customer trust in your product, increasing your conversion rate.
The means and manner in which you respond to your customers is critical. Online shoppers have many options and expect quick, and on most occasions, immediate responses to their inquiries. Few things turn off online customers more than slow service.
Answer all questions in detail and with patience. You should also communicate with your customers treating the interaction as part of a relationship, not a one-time transaction.
A satisfied customer is likely to return to you again and again for their needs and can be your best referral source. Not only that but selling or upselling current customers take far fewer marketing dollars than new customer acquisition.
Therefore, top-notch customer retention practices are crucial to your business and will help you build a loyal customer base, and a solid business altogether.
Word of mouth is still the most effective advertising strategy, and your customers are your best referral source. People are more likely to buy products that other shoppers have used and approved. Reviews make your product page more appealing to potential buyers.
They add personality and build trust. Amazon also uses reviews to rank products. Products with great reviews will get higher rankings, which is one of the primary drivers of sales.
To the extent possible and within Amazon’s rules, seek customer reviews and display them on your product page, your landing page, and any other page you might want to advertise your products on.
After optimizing your product page, you can start employing other marketing methods. Some low or no-cost methods include distributing your product's link to other websites and platforms. Social Media and blogging are great ways to get awareness around your product.
If your business has a social media account, content can be created around products not only to create awareness but also to drive traffic to your product.
There are also a plethora of paid marketing tools that are available to you. Amazon has its own marketing apparatus, particularly if you have your own brand. Pay-per-Click (PPC) advertising is also another great way to market your product.
You can create ads that will appear on the first page of search engines and expose your products to a lot more people. This can create traffic both on and off Amazon. It's a win-win! The advantage of PPC advertising is that you are only charged when someone clicks on your link.
Employing all of these measures to keep your business ahead can seem daunting. It is important to take it one step at a time in order to assure success at each step. You don’t have to do everything at once.
If you would like help, you can hire professionals like Eplaybooks who can handle the responsibility of scaling and expanding your business. Following these steps will help to increase your Amazon conversion rate, your ranking for keywords, and your online business revenue.
Photo by Christian Wiediger on Unsplash
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now