Businesses selling products on Amazon track their marketing success through various metrics, the most important of which is conversion rate. While tracking clicks and click-through rates helps sellers understand how many shoppers engage with their product listings, the Amazon conversion rate indicates how many of these visitors make a purchase.
Calculating conversion rates allows sellers to analyse product listing performance, determine the best strategy through A/B testing, and identify possible areas of improvement.
Of course, looking at the conversion rate by itself won’t always indicate overall performance on the Amazon platform, but it can offer a snapshot of how a product sells. Consistently low conversion rates may let a seller know they need to change their tactics or improve their optimisation.
Top Five Amazon Conversion Rate Statistics (Editor's Pick)
If you’re looking for a quick overview of Amazon conversion rate statistics, here are our top five data points:
- The average Amazon conversion rate is 9.87%, much higher than the average e-commerce rate of 1.33%.
- Amazon has at least 200 million Amazon Prime members, who bring an average conversion rate of 74% for sellers of Prime products.
- The average Amazon conversion rate for sponsored health and household products is 14.6%.
- The average conversion rate on Amazon Prime Day was 13.5% in 2019.
- The Amazon’s Choice badge increases a product’s conversion rate by an average of 25%.
What Is Amazon's Average Conversion Rate?
Conversion rate refers to a percentage dividing the total number of sales for a product listing by the total number of page clicks. The average conversion rate for Amazon is 9.87%.
Considering the average e-commerce conversion rate of 1.33%, Amazon offers online sellers a high-converting marketplace full of potential customers in the decision phase of the sales funnel. Top online sellers off amazon may average a 3.65% conversion rate, still far behind the average rate on Amazon.
Key Statistics
- Amazon conversion rates range between 5 and 15%.
- The average e-commerce conversion rate for non-Amazon websites is 1.33%.
- The average Amazon conversion rate is 9.87%.
- Major retailers like Walmart average 6% conversion for online sales.
- Other top 500 online merchants’ average conversion rates of 3.65%.
- Sellers who use Amazon FBA (fulfilled by Amazon) see conversion rates 22 times higher than US industry averages.
Sources: Best4Friends, AdBadger, Digital Commerce 360
Average Conversion Rate for Amazon Affiliates
The Amazon affiliate program provides passive revenue by offering commissions to websites directing traffic to Amazon products. When a customer follows an affiliate link to Amazon, the affiliate company receives a commission for whatever the customer purchases within 24 hours. The average affiliate conversion rate falls between 0.5 and 1%, although many affiliates boast higher rates.
Amazon affiliates make various commissions based on the product niche. Amazon pays a commission percentage of 10% on luxury beauty Amazon affiliate products but only 2% on televisions. Calculating an Amazon affiliate’s profit potential requires analysing conversion and commission rates.
Sources: Amazon Associates, Business 2 Community
Amazon Prime Conversion Rate
Amazon has more than 200 million Prime members worldwide, who enjoy benefits like free two-day shipping and video and audio streaming services. The Amazon Prime conversion rate averages a whopping 74%, exponentially higher than that for non-Prime shoppers.
Key Statistics
- At least 40 million US households include an Amazon Prime member.
- Amazon Prime members numbered 200 million as of 2020.
- The Prime conversion rate of 74% is 22 times higher than averages for other top retailers.
- Non-prime members will also shop for the same product on Walmart.com 12% of the time.
- Amazon Prime subscribers only shop on Walmart.com during a shopping session 0.9% of the time.
Sources: Statista, Digital Commerce 360
Amazon Conversion Rate in the United States
The average Amazon conversion rate in the United States falls between 10 and 15%, significantly higher than rates on other e-commerce websites. An Amazon seller can predict conversion rate in part by considering which product categories their goods fall under. Sellers may also increase conversion rates through Sponsored Amazon PPC (pay-per-click) Ads.
Key Statistics
- The average Amazon conversion rate for sponsored clothing is 5.5%.
- The average Amazon conversion rate for sponsored electronics is 6.4%.
- The average Amazon conversion rate for sponsored health and household products is 14.6%.
- Using Sponsored Products and Sponsored Brands can increase a seller’s conversion rate by 50%.
- The average conversion rate on Amazon Prime Day was 13.5% in 2019, up from 11.6% in 2018.
What Is a Good Amazon Conversion Rate?
The best-performing sellers on Amazon have an average conversion rate between 10 and 15% but having a high rate doesn’t necessarily indicate maximum profits.
For example, a seller may see a 50% conversion rate with only two visitors and one sale. 50% conversion looks excellent as a standalone metric, but two data points don’t provide an accurate view of ad performance. Sellers using conversion rates to analyse their online business should only make decisions based on conversion rates that include at least ten sales.
Generally, industry professionals consider a good Amazon conversion rate to be 10% or higher. A poor conversion rate would be below 5%, indicating poor performance and the need for ad optimization.
Factors That Affect Amazon Conversion Rate
Several factors affect a product listing’s Amazon conversion rate. Three essential elements that may impact the conversion rate include the following:
Keyword Choice
When optimising a listing, Amazon sellers must choose appropriate keywords that rank high and accurately describe the product. Sometimes, sellers optimise their pages for keywords purely for ranking purposes, but conversion rates suffer because the product does not match the keyword the user searched for.
For example, an Amazon ad selling corded phone chargers should avoid using keywords like “wireless phone charger,” even if it offers more search volume. A customer specifically looking for a wireless phone charger will click away from the seller’s page because it differs from the product they need, decreasing the conversion rate.
Online Reviews
To increase conversion rates on Amazon, sellers need good reviews. 97% of today’s consumers read product reviews before choosing a product to buy. Shoppers take reviewers’ opinions as seriously as they do recommendations from friends and family, if not more so. The products that do the best boast a large number of positive and genuine reviews.
Key Statistics
- 63% of online consumers prioritize sites with product reviews.
- 77% of mobile shoppers will more likely make a purchase with reviews offered.
- 70% of online shoppers avoid buying products with no reviews.
- 59% of shoppers only purchase after reading between one and ten reviews.
- 85% of shoppers specifically look for negative reviews for product transparency.
- Products with star ratings between 4.2 and 4.5 have the best purchase probability.
Source: PowerReviews
Amazon Badge
Amazon sellers can earn badges that appear next to product listings and tell consumers something about the product. The Best Seller badge appears when a product gains a top position within its category, and the Amazon’s Choice badge appears for top-performing listings for specific keywords. Both badges boost traffic and conversion rates because they indicate a popular and trusted product.
Key Statistics
- The Amazon’s Choice badge increases a product’s conversion rate by an average of 25%.
- Products with the Amazon’s Choice badge enjoy an average of 17% more daily glance views.
- The Best Seller badge boosts daily glance views by an average of 45%.
- Products with the Best Seller badge enjoy an average conversion rate increase of 3%.
Source: Profitero
Tracking Your Amazon Conversion Rate
If you sell products on Amazon, conversion rate tracking is essential to analyse ad performance and measure the impact of listing changes. Depending on which Amazon platform you sell your items on, you’ll find conversion rate data in different places. Here’s a quick guide to finding your Amazon conversion rate data from the various platforms:
Gathering data reports on Amazon Seller Central takes a few simple steps:
- Log into your Amazon Seller Central account, and click Reports on the top menu bar.
- Click Business Reports, then Detailed Page Sales and Traffic Reports by Parent Item
Select the date range on which you want to view data and download the report.
Each product’s conversion rate is listed in the report as the Unit Session Percentage. Amazon defines a session as the activity of a single user within 24 hours.
You can also access your Amazon conversion rate through Vendor Central by running another diagnostic report. Simply log in to your Vendor Central account, click Reports, and then click Traffic Diagnostics. This report includes product conversion rates and comparisons of rates over time.
To calculate the conversion rate for a product, you need two numbers: the total number of sessions and the total number of sales within a given timeframe (day, week, month, quarter, or year). Then, follow this simple formula:
Conversion Rate = Number of Sales / Number of Product Views (sessions)
Tips to Improve the Conversion Rate on Amazon
Business owners may wonder how to improve conversion rate and increase revenue. Keep the following tips in mind to maximise Amazon conversion rates and sales velocity:
Sign Up for Fulfilment by Amazon (FBA)
Customers who shop on Amazon with a Prime membership often filter search results to see products with free Prime shipping only. With hundreds of millions of Prime members in the United States and more throughout the world, you may miss out on a large pool of potential customers by not offering free shipping through FBA as an Amazon seller.
By joining the FBA program, sellers leave the product shipping to Amazon and offer free shipping to their customers. Consumers look for free or discounted shipping as the second reason for choosing a particular online marketplace, so offering Prime shipping to your Amazon customers can significantly improve your conversion rates.
Source: UPS
Provide Accurate Product Information
Although buying products online has become commonplace, shoppers may still worry about getting the correct item and rely on product descriptions to provide an authentic look. If you have inaccurate, hyperbolic, or missing information in a product description, this may cause the Amazon conversion rate to plummet. Provide visitors with complete, accurate descriptions of products to help improve Amazon conversion rate and appeal to more consumers.
You can also provide more specific product information by answering consumer questions. Paying close attention to this section can help you identify missing product information and indicate to future customers that you care about them enough to take the time to answer their questions. Try to answer questions within 24 hours to show your commitment to customer care.
Use Professional Product Photos
Whether or not sellers hire a professional photographer, product images should at least look professional. Using high-quality images can make the difference between making a sale or sending a consumer to a competing seller.
Keep the following tips in mind for professional-looking product photos:
- Use a clear main image. The main image for a product should clearly show what the product is while following Amazon’s requirements of a white background.
- Use large images. Amazon allows consumers to zoom in on large images (1000×500 pixels at least), allowing them to view the fine details.
- Use high-quality images. Amazon requires an image resolution of 72 dpi, but higher resolutions mean crisper, higher-quality photos with better zoom capabilities.
- Present your product from all sides. Online shoppers often want to see exactly what they’re getting before they buy, so be sure to capture the product from every angle.
- Show your product in use. The best product photos show a real person holding, wearing, or using the product to illustrate to the consumer how it functions and will look in person. Use caution when relying on photo editing software for these images. Inserting your product into a stock photo will never look as natural as taking a picture with an actual person.
Optimise Listings for Amazon SEO
Just as other e-commerce sites battle for high rankings on search engines like Google, product listings compete for higher rankings on Amazon. The products in the best-ranking positions get more traffic from searchers and therefore boast higher conversion rates.
Sellers wanting their products to show up early in search results must optimise their listings according to Amazon SEO best practices. These include:
- Filling out every product field. The Amazon algorithm prioritizes products with complete listings, which means every field has valuable information. For example, the product description includes fields like Material and Dimensions, and leaving as few blank as possible will help products rank better.
- Optimising the product title. Optimise the product title with a relevant keyword if natural and not too long.
- Using backend keywords. Amazon allows sellers to add keywords that don’t appear on the front end of the listing but help with search ranking. Be sure to take advantage of these backend keywords to help products rank better.
Determine the Best Price
Choosing the best price for maximum conversions is challenging in any online marketplace. Too low prices may indicate a cheaply made product, but consumers avoid too high prices altogether. To find the ideal price for your product, regularly conduct competitor research to learn what others in your industry are charging.
Pursue Every Review Opportunity
User reviews are essential for e-commerce success. Consumers want to know what past customers think of products and what problems they may have encountered. If they don’t find any reviews of products, they may not have enough trust to make a purchase.
Getting reviews can prove easier said than done, but sellers can begin by sending every purchaser a review request via email.
Respond to Negative Reviews
Ignoring negative reviews can have a more detrimental effect than the review itself. If other consumers see that you haven’t addressed the concerns of past customers, they will lose trust in you and your products. By responding, you show your past and potential customers that you care what they have to say and will work to address whatever issue they may have.
Getting reviews can prove easier said than done, but sellers can begin by sending every purchaser a review request via email.
Conclusion
As more and more consumer purchases occur online, Amazon remains an industry giant. Businesses that sell products on this popular marketplace enjoy an average Amazon conversion rate of 9.87% or even higher, far surpassing average conversion rates throughout the e-commerce industry.
The power of Amazon’s selling platforms cannot be understated, as illustrated by average conversion rates. While a 5% conversion rate would indicate excellent performance on any other online marketplace, it’s considered poor on Amazon, which averages around twice that.
