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Episode 6 – 2nd Profit Multiplier – Conversion Rate
In Amazon, your Conversion Rate is the most important metric that you can measure because:
* Products with a higher conversion rank will rank better. Amazon is going to reward those products that are more likely to result in a sale. Thus a product that is has a 1 in 3 chance of getting a sale for a keyword will rank better than a product that has a 1 in 10 chance of getting the sale and earning Amazon income.
* Products with a higher conversion rate will get more traffic because they rank better for more keywords and Amazon will start to actively promote those products.
* Advertising costs will be cheaper – pay less per click and get more sales per click.
Transcript
Welcome to Episode 6 of the Treehouse metrics podcast
My name is Arnie Shields and I am your host, bringing you the skills and knowledge to work ON your Amazon business rather than IN your Amazon business.
In the 3rd episode, i introduced the 5 multipliers of business and how just small increases in each of those multipliers can deliver you exponential growth
In this episode, I am going to discuss the 2nd multiplier – your Conversion Rate
The Second Profit Multiplier – Conversion Rate
What is your conversion rate – your conversion rate is the percentage of visitors to your product pages that convert to sales.
In Amazon, it is best measured by the Unit Session Percentage in Seller Central Business Reports.
or Number of sales divided by number of Sessions.
In Amazon, your Conversion Rate is the most important metric that you can measure because:
* Products with a higher conversion rank will rank better. Amazon is going to reward those products that are more likely to result in a sale. Thus a product that is has a 1 in 3 chance of getting a sale for a keyword will rank better than a product that has a 1 in 10 chance of getting the sale and earning Amazon income.
* Products with a higher conversion rate will get more traffic because they rank better for more keywords and Amazon will start to actively promote those products.
* Advertising costs will be cheaper – pay less per click and get more sales per click.
The conversion rate is all about your product page because you have no influence of any other aspect of Amazon’s layout, process, checkout process.
So all you can change is the product page – assuming that you have the buy box.
So lets look at the items on the product page that you can change or influence:
1. Title – Product Name – this also affects yours sessions and become a double edged sword in terms of using the title for keywords and using the title for Conversions. It becomes a tricky issue to balance the wording to avoid unintelligent keyword stuffing.
2. Main Image – this is sessions and conversions – the main image is a key player in getting people from the search results to your product page.
3. Secondary Images – Using the secondary images to highlight key benefits. Can we tell the story in pictures?
4. Price – what effect does price have on your conversion rate. Important to test both higher and lower prices. A higher price might have no effect on sales.
5. Offers – The Amazon offers – buy 3 and get 10% off.
6. Bonuses – delivered via email – eBook, how to guides
7. Bullet Points – 5 places to highlight key features and benefits. Time to start reading up on copywriting – offsetting the logical and emotional. People buy on emotional and justify the purchase with logical.
8. Product Description or Enhanced Brand Content – it’s down the page below the fold – below Amazon’s upsell’s and crosssells and below a couple rows of sponsored products ads
Then we have customer created content that we can have an influence
View all episodes
By Arnold ShieldsIn Amazon, your Conversion Rate is the most important metric that you can measure because:
* Products with a higher conversion rank will rank better. Amazon is going to reward those products that are more likely to result in a sale. Thus a product that is has a 1 in 3 chance of getting a sale for a keyword will rank better than a product that has a 1 in 10 chance of getting the sale and earning Amazon income.
* Products with a higher conversion rate will get more traffic because they rank better for more keywords and Amazon will start to actively promote those products.
* Advertising costs will be cheaper – pay less per click and get more sales per click.
Transcript
Welcome to Episode 6 of the Treehouse metrics podcast
My name is Arnie Shields and I am your host, bringing you the skills and knowledge to work ON your Amazon business rather than IN your Amazon business.
In the 3rd episode, i introduced the 5 multipliers of business and how just small increases in each of those multipliers can deliver you exponential growth
In this episode, I am going to discuss the 2nd multiplier – your Conversion Rate
The Second Profit Multiplier – Conversion Rate
What is your conversion rate – your conversion rate is the percentage of visitors to your product pages that convert to sales.
In Amazon, it is best measured by the Unit Session Percentage in Seller Central Business Reports.
or Number of sales divided by number of Sessions.
In Amazon, your Conversion Rate is the most important metric that you can measure because:
* Products with a higher conversion rank will rank better. Amazon is going to reward those products that are more likely to result in a sale. Thus a product that is has a 1 in 3 chance of getting a sale for a keyword will rank better than a product that has a 1 in 10 chance of getting the sale and earning Amazon income.
* Products with a higher conversion rate will get more traffic because they rank better for more keywords and Amazon will start to actively promote those products.
* Advertising costs will be cheaper – pay less per click and get more sales per click.
The conversion rate is all about your product page because you have no influence of any other aspect of Amazon’s layout, process, checkout process.
So all you can change is the product page – assuming that you have the buy box.
So lets look at the items on the product page that you can change or influence:
1. Title – Product Name – this also affects yours sessions and become a double edged sword in terms of using the title for keywords and using the title for Conversions. It becomes a tricky issue to balance the wording to avoid unintelligent keyword stuffing.
2. Main Image – this is sessions and conversions – the main image is a key player in getting people from the search results to your product page.
3. Secondary Images – Using the secondary images to highlight key benefits. Can we tell the story in pictures?
4. Price – what effect does price have on your conversion rate. Important to test both higher and lower prices. A higher price might have no effect on sales.
5. Offers – The Amazon offers – buy 3 and get 10% off.
6. Bonuses – delivered via email – eBook, how to guides
7. Bullet Points – 5 places to highlight key features and benefits. Time to start reading up on copywriting – offsetting the logical and emotional. People buy on emotional and justify the purchase with logical.
8. Product Description or Enhanced Brand Content – it’s down the page below the fold – below Amazon’s upsell’s and crosssells and below a couple rows of sponsored products ads
Then we have customer created content that we can have an influence