When you put a listing on Amazon, what do you want most from those visiting it?
Just open your listing and close it.
Or, visit your listing and also carry out the desired action (buy something).
We all know which scenario is the correct answer.
This desirable action of visitors clicking on your page/listing and buying something is called a conversion.
The ratio of the number of orders to the number of visits (sessions or clicks) is called the conversion rate (CVR).
CVR is one of the most crucial KPIs for any Amazon listing. Thus, every seller must understand how it’s calculated.
What is the exact CVR formula on Amazon? How do we calculate CVR for ASINs as well as keywords? And how can you improve your Amazon CVR?
You will find answers to all these and similar questions in this post.
For many, the conversion rate on Amazon only means one thing, i.e., the number of orders divided by the number of page visits. However, this CVR definition doesn’t tell the complete story.
On Amazon, a seller doesn’t just track the conversion rate of a particular ASIN/SKU. Since they also run paid marketing campaigns, they need to know the conversion rate for the keywords they target with their PPC campaigns.
Here, we will walk you through the steps to find/calculate CVR for both.
To calculate the conversion rate for the ASINs you have listed, you have to head to your Seller Central account.
Amazon essentially calculates this value using this formula.
Unit Session Percentage (Conversion rate) = (Units Ordered / Sessions) x 100
Units Ordered is the 8th column, and Sessions is the 3rd column on the above page.
It is worth mentioning here that sessions are slightly different from visits/views. As per Amazon, a session is a window where a visitor spends time on the Amazon marketplace browsing through one or multiple product pages within 24 hours. So you can also say that the number of sessions is the total number of page views by unique customers in the 24-hour window.
On the other hand, page view/visit records all the instances when the same or unique visitor sees your listing.
Suppose a shopper opens your listing, clicks on another product page from the recommended product carousel, and eventually returns to your product page and places an order. It will be considered a single session and two page views.
So, the number of sessions and page views are not necessarily the same every time. Therefore, using page views in place of no. of sessions can give a skewed conversion rate.
This is why Amazon uses the number of sessions instead of page views when calculating CVR for an ASIN since it gives a clearer understanding of how a visitor turns into a customer.
Pay-per-click (PPC) advertising is a go-to promotional method for most Amazon sellers. The CVR of an Amazon PPC ad shows you how many orders have been placed from the clicks you have acquired through paid marketing.
The CVR for PPC ad campaigns can also be found on Seller Central.
Amazon uses this formula to calculate this conversion rate:
Conversion rate: (No. of Orders / No. of Clicks) x 100
If you notice, the sessions here are replaced by the number of clicks. This is because the PPC campaigns are based on the number of clicks/views. Sellers are charged for every click, so it is essential to use no. of clicks to calculate the CVR of Amazon ad campaigns.
As mentioned earlier, the ultimate goal of any Amazon seller is to “convert” the visitors on their listing into buyers. Therefore, you can do a list of things to improve the conversion rate for your ASINs and PPC ads.
Product images, bullet points, description, A+ Content— all these things on your listing are integral in persuading a visitor to try your product. Therefore, always be on top of your game while creating and curating your listing content.
Short, easy-to-read content that addresses customers’ potential pain points, product shots that display the product inside out, and A+ Content that is informative as well as easy on the eyes will ensure that a large number of people ending up on your listing also buy from you.
Ratings and reviews are the social proof and word of mouth for products sold online. No matter how compelling your listing content is, you won’t be able to convert more visitors into customers if you don’t have enough positive reviews and your rating is not way past 4.0.
Therefore, make sure a satisfied customer always leaves a review on your listing page. You can use Review Automator for this purpose. This tool sends reminders to only those customers who don’t have any grievances regarding the received order. Such customers are more likely to leave good reviews and 4+ ratings. Having a reasonable aggregate of reviews and ratings on your listing will improve its conversion rate.
Amazon marketplaces are thriving with competition where it is pretty common to have competitors with the same product quality, listing content, and reviews/ratings. A customer breaks a tie between competing listings by comparing their prices in such a case. So, you are more likely to witness better conversion if your prices are slightly lower than your competitors.
Whether you want your listing to organically rank better on Amazon SERPs or hit the bull’s eye with PPC marketing, you need to be very diligent in selecting your keywords. First, populate and optimize your listing content with keywords that best describe your product and are also in line with the search intent of shoppers. This tool can make listing optimization a cakewalk for you.
Moreover, you need to select long-tail keywords with high search volume and low competition for your PPC bids to improve the CVR of your ads. This Keyword research tool can come in handy for finding the best keywords for your listing optimization and PPC campaigns.
Click-Through Rate (CTR) and Conversion Rate (CVR) are two important performance metrics for a PPC ad running on Amazon. While CVR tells how many visitors become customers, CTR tells how many impressions translate into page visits.
The formula for CTR and CVR are as follows.
CTR = (Total Clicks/Total Impressions) x 100
CVR = (Total Orders/Total clicks or sessions) x 100
It is worth mentioning that an ad campaign with the proper keyword targeting improves the CTR of a listing ad. It shows that people searching for a product consider your listing in line with their requirements. However, an ad can only help you until this stage of the funnel— whether a visitor becomes a buyer will depend on the factors discussed in the above section (how to improve CVR).
Therefore, a higher CTR only shows you’re gaining good traction for the keywords you’ve targeted in your PPC campaign. Higher CTR doesn’t necessarily mean higher sales. The sales volume primarily depends on CVR.
Before wrapping up this article, let’s answer some frequently asked questions about Amazon CVR.
Amazon CVR formula for ASINs is:
CVR = (No. of Orders / Sessions) x 100
Amazon CVR formula for PPC campaigns is:
CVR = (No. of Clicks /No. of Impressions) x 100
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Conversion Rate (CVR) is the percentage of visitors who have clicked on a product page (ad) and performed the desired action (placed an order).
10-20% can be considered a good conversion rate on Amazon, depending on the product and niche. A 10% conversion rate means 10 out of 100 visitors to your product listing are placing the order.
From the above discussion, it is clear that you don’t need a CVR formula to calculate your Amazon conversion rate. Amazon does that for you. You only have to look at the right place in Seller Central to find it. Also, Amazon provides two slightly different CVR values: one for the ASINs and one for the targeted PPC ads and keywords.
If you want to improve the CVR for both your listing and PPC campaigns, you must select the right keywords and optimize your listing content accordingly.
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