Amazon Conversion Optimization

What is Amazon Conversion Optimization?

Conversion optimization basically means all measures that have the goal of increasing conversion (conversion, i.e. from interested parties to actual customers/buyers). In the case of Amazon or other marketplaces, a conversion would mean, among other things, the actual purchase of a product. On the website of a SaaS (Software as a Service) provider, however, the registration of a user or the conclusion of a subscription is counted as conversion instead of a conventional purchase. So it always depends on the business model on which it is based. Whether Amazon Seller or SaaS provider – both try to bring a website visitor to a conversion, i.e. to generate a purchase or lead – a value arises for the respective company, which can be expressed e.g. in the turnover. From a business point of view, conversion thus represents a value-added process. It should also be mentioned that Amazon Conversion Optimization is not a one-time optimization, but rather a continuous process.

What is the difference between Conversion and Conversion Rate Optimization (CRO)?

Incorrectly, the terms Conversion Optimization and Conversion Rate Optimization are often equated. The difference can be explained by using the terms effectiveness and efficiency. Effectiveness (often translated as “doing the right things”) is comparable to conversion or purchase on Amazon. Efficiency (“doing things right”), on the other hand, describes conversion rate optimization in Amazon Optimization. More precisely, the Conversion Rate describes the number of sales (not the number of products sold) relative to the number of visits an Amazon product page receives. A visit is defined differently depending on the platform or channel and is directly related to the cookie set. At Amazon, a visit is defined as a 24-hour session – which means, conversely, that all activities of a user’s session are measured in 24 hours.
Which activities play a particularly important role at the CRO is explained below.

How is the Amazon ranking algorithm related to Amazon Conversion Rate Optimization?

The ranking of products at Amazon is significantly influenced by the two factors performance and relevance. In order to explain these factors in more detail, it is first necessary to understand how the ranking in the Amazon search algorithm works at all. The ranking is directly related to Amazon’s primary goal – the maximization of customer lifetime values. The Customer Lifetime Value (CLV) can generally be understood as the average value that a buyer has for a company during his entire “customer life” and will probably have in the future. The main question is: When does a customer shop at Amazon again and again? If one puts oneself in the position of an Amazon customer, one would probably like to find coherent, trustworthy and attractive offers. If the buying experience was then still satisfactory, you can assume with a high probability that you will buy again. Here we come back to the factors mentioned at the beginning. A high relevance of the offered products and the performance of Amazon and the Amazon sellers have a direct influence on the purchase probability and satisfaction of the customer.

Which influencing factors play a role in Amazon Conversion Rate Optimization?

There are several factors influencing the conversion rate. Amazon merchants only have an indirect influence on the Amazon conversion rate, but can influence it with targeted measures. The most important factors are described below.

Title

The title seems to have a particularly high weighting at Amazon, because it is also at the top of the product listing. Therefore, products should have a specifically optimized title. The title should contain among other things:

  • The brand (eg. Johnny Urban)
  • Product name
  • Synonyms for the product
  • Material or main ingredient
  • Size
  • Quantity
  • Important features/advantages
  • Color

Some formatting tips should also be followed:

  • The title should not only consist of capital letters
  • It should, of course, be designed to maintain the reading flow
  • Do not use quotation marks

Product images

The images of the offered product have at least the same weighting. For Amazon, the image seems to have such a high weighting that listings without images do not even appear in the search. So it is generally a matter of maintaining professional quality for photos and the restrictions of Amazon for product images:

  • Image size min.1280px to 3000px on the longest side (otherwise the zoom functions cannot be activated)
  • Up to 8 product images are allowed (should also be used)
  • The first photo should show the product on a white background

Bullet points

The attributes can be found as listing points on every article detail page. These can each contain 500 characters, but should not contain more than 200 characters per attribute, since Amazon (known from experience) only considers the first 1000 characters cumulated by the search algorithm.

Pricing & Shipping

Even the best titles, descriptions and pictures won’t help if the price of a product is perceived as too high and if shipping costs are added. Here you have to keep an eye on the prices of your competitors and test them yourself. The seller must never lose sight of his margins. The conversion rate is drastically increased if you decide to work with Amazon as your fullfilment partner and the prime seal is displayed next to the price.
ATTENTION: It is basically a very good idea to work with strike prices as a marketing instrument and thus encourage potential customers to buy. However, the discount price must be an exception.

Reviews

In addition to the price and the Amazon product description, ratings have a particularly important influence on the purchase decision of users and the associated conversion rate. In our detailed article on Amazon Reviews the topic of reviews and how the Market Pioneers as Amazon Marketing Agency will help sellers build good reviews is dealt with.

Questions and answers

The questions and answers can also have a positive effect on the conversion rate. Uncertainties about the product can be clarified directly and thus have a positive influence on the purchase decision.

Entirely filled-in product data

Due to the immensely increasing supply of products in the marketplace, the importance for the product data quality on Amazon rises at the same time. No matter if you use the stock file (also called flat files) or if you enter your product data directly in Sellercentral – for a good visibility and a higher conversion rate it is important to keep this point.

Brand

People always associate a certain value with a registered trademark and it is also worth registering your own trademark for every Amazon retailer who sells its own products. Amazon offers registered brand dealers more and more the opportunity to present their brand. With Enhanced Brand Content (EBC) for sellers and A+ Content for vendors, you can set yourself apart from the competition with several images, tables, descriptions and a shop in the shop system. These additional visual incentives to buy not only have a positive effect on your own branding, but also directly on the Amazon conversion rate.

Availability & Stock

This may be a trivial factor for many traders, but it is still more than worth mentioning. Products are often ordered from Asia and therefore have a relatively long lead time to reach the Amazon warehouse. Once the point has been reached that goods are no longer available in the warehouse, it can quickly happen that the bestseller rank (BSR) drops drastically and the hard-won ranking has to be rebuilt – this can have a negative impact on the Amazon conversion rate in addition to a drop in sales.

Amazon Choice or Bestseller Label

With the Amazon’s Choice Label Amazon wants to relieve the customer of the purchase decision. It is obvious that products with such a label have a higher Amazon conversion rate than products without this label. Amazon.de describes the label with: “Amazon’s Choice recommends top rated, immediately available products at a reasonable price.”
In the US market, there are already more detailed indications as to how a product receives such a choice status. The following requirements must be met:

  • a low return rate for the product category
  • a good star ranking (at least 4 stars)
  • a high click and conversion rate among users who enter a specific keyword
  • prime delivery
  • a bestseller status of the retailer in the product segment

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