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How to Calculate Amazon PPC Conversion Rate in 2022?

increase-conversion-rate

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In other words, it’s a ratio comparing how many people visit your site to how many people buy from you after seeing your ad. There are many ways to optimize this ratio, but first, we’ll focus on calculating your Amazon PPC conversion rate and how to find out if your PPC strategy is working.

How to Calculate Conversion Rate in Amazon PPC

The first step in calculating your conversion rate is counting the number of impressions (I) and clicks (C).

In Amazon PPC, we also need to count the number of “click-throughs” (CT). The formula to calculate your conversion rate is as follows:

  • Conversion Rate = Impressions / Visits × 100 + Clicks / Visits × 100 + Click-Through Rate / Visits × 100
  • The first metric (impressions/visits) is the percentage of visitors who saw your ad.
  • The second metric (clicks/visits) is the percentage of those who clicked on your ad.
  • The third metric (click-through rate) is the percentage of people who clicked on your ad and made a purchase.

amazon ppc conversion rate

Why Calculating Amazon PPC Conversion Rate Important?

Calculating your Amazon PPC conversion rate is important because it helps you understand how effective your PPC ads are. If you have a high conversion rate, then you know that your ads are reaching people who are interested in your products and services. You can then use this information to make changes to your ad copy, targeting, or placement to make the campaign more effective.

If you don’t know what your conversion rate is, then it’s impossible to determine whether or not your campaign is successful. This means that you won’t be able to adjust anything based on how well it’s doing, which means that there’s no way for you to improve upon what’s already working well and no way for you to fix anything that isn’t working well either!

The first step in optimizing your PPC campaign is understanding what is going on. The numbers will tell you what’s working and what isn’t so you can make adjustments.

With that said, tracking conversion rate is important for three main reasons:

Track Progress

Tracking your Amazon PPC conversion rate will help you track progress over time. You can see if your campaigns are improving or if they’re staying the same.

Find Problem Areas

Tracking your Amazon PPC conversion rate will help you find problem areas. If your conversion rate is much lower than you’d like, you can work on improving those areas.

Find Winning Strategies

Tracking your Amazon PPC conversion rate will help you find winning strategies. If your Amazon PPC conversion rate is high, you know what’s working and can replicate it.

Strategies to Increase Your Amazon Conversion Rate

Amazon PPC is a great way to make sales and grow your business, but it can also be difficult to get the most out of it. In order to increase your Amazon PPC conversion rate, here are some strategies you can use:

Improve your product listings.

A poorly written title and low-quality images can hurt your conversion rates. Make sure you’re using eye-catching images and keywords in the product title to help your products show up higher in Amazon’s search results.

Use the right keywords.

When people search for products on Amazon, they’re often looking for specific products. If you’re advertising a product that isn’t relevant to the keyword, your conversion rate will suffer.

Use negative keywords

Negative keywords are words that you don’t want to appear on your ad, so they’re the opposite of a keyword. For example, if you sell hiking boots, and you want to target people who are interested in hiking, but not necessarily interested in buying hiking boots right now, then you could include the word “hiking” as a negative keyword.

Get more reviews.

Reviews are important for increasing your conversion rate. If you have more reviews, Amazon will show your products higher in the search results. More reviews also give customers more confidence in your product.

Send traffic directly to your website.

Each campaign on Amazon is a separate website. If you send traffic directly to your website, you’ll see a higher conversion rate than if you send it to your Amazon listing. This is especially true if your Amazon listing isn’t optimized.

Create ads that are relevant to the product category

When you create an ad for a product category, it’s likely that your competition will be doing the same thing. So make sure that your ad is more compelling than theirs! If you’re selling hiking boots on Amazon PPC, make sure your ad includes information about why those boots are different from the other options. You can also consider putting together a bundle with other products or creating some sort of offer for buyers with this specific product category in mind.

How To Find Out If Your Amazon PPC Strategy Is Working?

The easiest way to find out if your Amazon PPC campaign is working is to check your conversion rate. This number indicates how often people who click on your ad end up buying from you (or clicking on another link). It should be above 1% for most products and categories, but it depends on the market and competition.

If it’s too low, consider changing your keyword list or improving keyword targeting so that more people are finding what they want on Amazon when they search for relevant terms related to what they’re looking for (e.g., “dog food”)

The best way to know if your PPC strategy is working is by checking your sales volume. You can do this by looking at the daily sales volume for each product listing in Analytics under “Product Performance.”

If you see an increase in sales volume over time, then your strategy is working! Finally, you can also use Google Analytics to track how many people visit your site from Amazon PPC ads. This is helpful if you’re using negative keywords or want to track your progress over time.

CRO tools allow advertisers to optimize their ads based on performance metrics like click-through rate (CTR), cost per click (CPC), and conversion rate (CR). These tools can help advertisers make adjustments based on performance data so they know which keywords or ads are performing better than others.

What is a Good PPC Conversion Rate?

If you’re an Amazon seller, you may be wondering what a good conversion rate is for your business. The answer to this question depends on a number of factors, including your industry and product line.

For example, if you sell products that are highly seasonal, your conversion rate will likely be higher during certain times of the year than others. Similarly, if you sell products that are more expensive than others in your category, your conversion rate will likely be lower than average because fewer people are likely to purchase them.

However, there are some general guidelines for determining when your average conversion rate is high enough to be considered “good.” In general terms, Amazon recommends that sellers have at least a 1% conversion rate to be successful on the platform.

This means that if you have 100 visitors per day to your listing page and only 1 person buys something from it, then you’ve got a 1% conversion rate—and this is considered good!

There are many things you can do to increase the conversion rate of your website, some of which are more difficult than others. Here are some tips for increasing your conversion rate:

  • Make sure that all of the links on your website work. If there is a broken link on your site, this can make visitors leave quickly and not come back
  • Make sure that all of the content on your site has been proofread and edited by a professional writer before posting it online. This will ensure that there are no errors or typos in any text on your page that might cause people to leave quickly without reading all of the information they need to before making a decision about whether or not they want to stay on your site
  • Make sure that there aren’t any advertisements on your page that might distract users from what they came there for in the first place (such as shopping) or cause them to accidentally click on something else instead (such as an advertisement). It’s important that everything on your page is related back to whatever reason people came there in

Key Takeaway

The first step to optimizing your Amazon PPC campaign is measuring how well it’s currently performing. The only way to do that is to track your PPC conversion rate.

Once you know how well your campaign is doing, you can make changes to improve your Amazon PPC conversion rate. And when you have more sales from Amazon PPC ads, you can reinvest that money in other areas of your e-commerce business.

FAQs

How do I find Amazon PPC conversion rate?

The formula to calculate your conversion rate is as follows:

Conversion Rate = Impressions / Visits × 100 + Clicks / Visits × 100 + Click-Through Rate / Visits × 100

The first metric (impressions/visits) is the percentage of visitors who saw your ad.

The second metric (clicks/visits) is the percentage of those who clicked on your ad.

The third metric (click-through rate) is the percentage of people who clicked on your ad and made a purchase.

What is the average conversion rate on Amazon?

The average conversion rate on Amazon is 9.87%.

What is a good conversion rate for Amazon PPC?

A good conversion rate for Amazon PPC is the number of times a user clicks on your ad and then makes a purchase. The average conversion rate for an Amazon PPC campaign is 2%.

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Zeeshan Riaz
Chief Operating Officer

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

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