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What Is a Good Sales Conversion Rate On Amazon?

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Good Sales Conversion Rate On Amazon

A reasonable sales conversion rate is the pivot around which the business on Amazon revolves. Several factors determine the growth and outreach of your E-commerce business, but a sales conversion rate entails the actual revenue generation of your business. A reasonable conversion rate depicts the longevity of your business. Another thing a sales conversion rate enlightens is the efficiency of your inventory.

Working as a Seller on an online platform would automatically compel you to check up on your sales daily. It becomes a habit too because it is the utmost priority of any Seller to attract as many sales as he can to earn higher profits. In addition, to gain, another factor will be of utmost attention for an online Seller: the conversion rates of his online business. It is undoubtedly imperative for every person in business to understand a reasonable sales conversion rate on Amazon and get the actual view of his company’s performance by looking into the business’s Conversion rate.

Furthermore, a vast and most frequently used e-commerce platform like Amazon also pays a lot of attention to expanding and continuously improving the conversion rate of its business, and it has succeeded in doing that. Wonder how? That’s what we will be talking about in this article: how can one improve the sales conversion rate on the most widespread E-commerce platform like Amazon. Millions of people are joining Amazon daily either to work as a Seller or buy something because it sells the most original and trusted products worldwide. 

What is a Conversion Rate?

The conversion rate can be defined as the number of times you successfully attract people and make them buy something from your online store. It can be said without a doubt that the Conversion rate is significant for any business to determine the company’s performance in every aspect of business operations.

The conversion rate can be calculated by dividing the total number of visits to your site by the number of sales that have occurred in a specific period. However, if you want your answer in percentage, you can multiply it by 100. So, the answer would be clear to you about the percentage of conversions of your business. The conversion rate is pre-defined by Google Analytics. It may or may not be a sale. This ultimately depends on the site owner’s criteria that have yet to be defined by Google Analytics.

Most people confuse conversions with sales. At the same time, both of them are entirely different concepts. Transformation does not have to be an actual sale. A vast platform like Amazon also increases its conversion rate daily. 

Let us further discuss a reasonable sales conversion rate on amazon and how one can maintain a reasonable sales conversion rate in the future. 

The Sales Conversion Rate On Amazon:

As the most popular and well-known e-commerce platform like Amazon, it takes every possible step to expand its sales conversion rate worldwide. A sale conversion rate on Amazon could be defined as the number of total sales earned in a specific period. You can easily estimate it through the simple formula of sales conversion rate that is dividing the total number of sales by the number of visits on Amazon’s online store and then multiplying it with 100 to get the accurate percentage answer.

One would wonder what a reasonable sales conversion rate is on a vast platform like Amazon. Well, the answer is approximately 10% – 15%. A business that will be able to derive as much as sales which would, in turn, result in a conversion rate that lies within the above-stated percentage, would be termed as a smooth running and profit earning one. 

What Is a Good Sales Conversion Rate On Amazon, and How Do You Calculate It?

Calculating the correct Sales Conversion rate of your Amazon store and understanding what a reasonable sales conversion rate on Amazon is would also help you to;

  • To analyze the performance of your business.
  • Understanding the demands of the customers. 
  • Knowing your place among the competitors.
  • It gives you an understanding of which areas are to be improved.
  • It helps your products to rank high in the product listings

How to calculate Sales conversion rate on Amazon?

Calculating an accurate sales conversion rate is essential for every business because you can quickly determine the performance of your online store. In addition to this, you will be aware of the exact number of people you can focus on regarding your online store on Amazon. It is crucial for you as a business person to understand a good sales conversion rate if you are working on Amazon to work according to those required grounds to expand your sales globally.

Moreover, this sales conversion rate should be critically monitored because it will let you know what things are needed to improve to enhance and accomplish a good sales conversion rate.

The formula of calculating a Sales conversion rate of your store on Amazon is; 

Sales Conversion Rate = Number of Sales / Total Visits x 100 

How Can a Good Conversion Rate On Amazon Be Maintain?

Once you have understood what a good sales conversion rate on Amazon is and started working according to those factors, you will have to maintain it because you want to compel people to visit and buy from you. People will not be attracted to you if no measure is taken to gain their attention.

Amazon Prime has a sales conversion rate of almost 74%, which is undoubtedly the highest because the most popular brands even have a conversion rate of nearly 20% – 25%, which is considered the maximum. If your amazon store is running successfully and can get numerous sales monthly, your maximum sales conversion rate would lie between 10% – 15%, which is considered excellent. 

Following are discussed some of the ways to maintain a good sales conversion rate on a widespread platform like Amazon;

  • Work with FBA:

Fulfilment by Amazon or FBA is a supplier program that works under Amazon itself. It has a vast number of Sellers attached to it to handle the supply chain process of their online store on Amazon. As Amazon is a comprehensive platform, it facilitates its sellers to flourish and Amazon. 

When you choose FBA as your fulfilment program, you can relax from all the work related to the packaging, storing, delivering, and shipping of your products to their desired destinations. It will make you sure that all your products are fulfilled with security and reach your customers at the right time. It will significantly contribute to enhancing the Sales conversion rate of your Amazon business.

  • Wise price policy:

Secondly, to maintain a good sales conversion rate on Amazon, you would have to be careful to list the prices under your products. You must not be too excited about it because displaying higher prices would probably drive all of your customers far away. On the other hand, when your prices are too low, people seem to think that you are dealing in low-quality products. 

Therefore, to improve and maintain a good sales conversion rate on Amazon, you need to use the price policy wisely by keeping your competitor’s prices in mind.

  • Keyword selection:

Another main factor that could help you exceptionally maintain a good sales conversion rate on Amazon is correct and most common keywords. When you invest significantly in keyword optimization, your product’s ranking increases on Amazon, and you can get the attention of a larger audience. Therefore, it proves to be an excellent means to maintain a good sales conversion rate in your business.

  • Products improvements:

The products you are displaying and offering your customers to sell must have all the necessary qualities a customer searches for. Because when you want to sell something, it is undoubtedly essential that it be of good quality so that the customer is satisfied by it and comes to you in the future also.

Product improvement would lead to a significant increase in the sales conversion rate of your business on Amazon. 

  • Introduce new products frequently:

To maintain a good sales conversion rate on Amazon, you need to keep yourself in the game by constantly introducing new products. As an old saying has proved well that “Don’t put all your eggs in one basket” you will never be left empty-handed when you are dealing with one or more ranges of products. This is an excellent way of working on a massive platform like Amazon to maintain a good sales conversion rate.

Conclusion:

Working with Amazon might seem difficult but trust me, it is not at all! You are guided in every possible way one could ever wish for. Amazon never fails to act as a good mentor for the people who want to become businessmen while selling through a digital platform. It involves several people running their online stores through it very successfully. 

On the other hand, Amazon also has an excellent ratio of satisfied customers who purchase things daily, and never once has Amazon failed them. Therefore, while running your very own E-commerce store on the most trusted platform like amazon, you need to work well in terms of firstly understanding a good sales conversion rate on Amazon and later on working to achieve it and maintain it to flourish in the long run.

Picture of Zeeshan Riaz <br> <span class="designation">Chief Operating Officer</span>
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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