Amazon is the biggest retailer in the world. It attracts customers to it’s platform and converts them to loyal shoppers like a magnet. Amazon’s growth over the years has been impressive and due to the current COVID 19 crisis, its growth is accelerating. So whether you are already selling on Amazon or you are about to embark on on the Amazon ship as a seller, it becomes more and more important to understand how to maximise your profit from this platform. And increasing your profit starts with improving your conversion rate.
Improving the conversion rate in 3 steps:
- Understand the elements that can be optimised
- Apply best practices
- Take it to the next level with A/B testing
Understand the elements that can be optimised
There are many elements on an Amazon listings page that can be tweaked. However for everyone who sells on Amazon it is important to understand the six key elements below. It is recommended that you follow best practices for each of these elements and optimise continuously for maximum results.
- Product Title
- Product Images
- Key Product Features
- Product Listing Description
- Amazon Product Reviews
- Amazon Product Rating
Jungle Scout has graded the elements above and has investigated the relative importance of each element and, most important, its impact on conversion rate. This helps a lot in prioritising your optimisation efforts. According to Jungle Scouts research this is how Amazon weighs the 6 key elements of a listing page:
If we add an additional column to the table we get a better understanding of how this scoring system relates to Amazon’s strategy. In a previous post we have shown Amazon’s mission statement:
Be the Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.
Amazon wants to be the most customer centric company in the world. This is reflected in the scoring system of the different elements that can be optimised. Note that 20 points are given to find the product that the user is looking for. 35 points are related to the customer understanding what she is buying. But most points go, 45 in total, to customer satisfaction. How satisfied are customers with your products (Product rating) and how many reviews does the product get (Number of reviews).
See how it all comes together: You can only have many reviews if you sell a lot of products. You can only sell a lot of products if your product is great, has the right price and when you offer excellent customer service (being customer centric, lowest possible price). Customers will buy from you if they understand what they can expect, hence the product description, the images and features). Before they can understand they must find your product. That’s why optimised titles are important which relates to “where customers can find and discover anything they might want to buy online.
Apply best practices
And the most interesting part is there is evidence for the scoring system. Startup bros have analysed various cases and have plotted some of the elements that can be optimised against the conversion rate of the listing page.
So the quality of your listing pages or your product feed is the basis for being successful on Amazon. As the images above show, optimising your product feed by applying these best practices, really pays off. It is the start of everything, as you control the content of your product feed.
Take it to the next level with A/B testing
Applying best practices is an important first step. Once you have created an optimised product feed you can start A/B testing the different elements:
- What title works best?
- Will the conversion rate go up if you include USP-s in your images?
- If we use information from the Q and A section on Amazon to improve the product description, will that increase our revenue?
These are just a few examples of things that you could test. I am sure you are even more creative in creating impactful experiments fro Amazon.