Amazon FBA Conversion Rate

Conversion rate is a critically important metric for any ecommerce seller. Since Amazon is the world’s largest online retailer, it should come as no surprise that the Amazon FBA conversion rate is 22 times higher than the average conversion rates of North America’s top competitors.

According to a study conducted by Millward Brown Digital, the Amazon conversion rate among Prime members is 74% compared to 13% for non-Prime numbers. In comparison, the research shows when Prime members shop with other major online retailers in the space, such as Target and Walmart, the average conversion rate is 6%. For the remainder of merchants listed in the Top 500, the conversion percentage drops to 3.32%.

The consistently high Amazon conversion rate is attributed to how customer-centric Amazon’s model is. Once a customer becomes a Prime member, they receive benefits not included with other large retailers. These perks include: 

  • Free two-day shipping
  • Access to streaming movies and TV shows
  • Digital music
  • E-books

The entertainment and convenience factor of being an Amazon Prime member is considered a bargain at $99 per year and is a smart way for Amazon to entice and maintain a loyal following. As a result, brands that register as an Amazon FBA business benefit from this branding and Amazon marketing strategy as they build and scale their own stores.

How To Calculate Conversion Rates On Amazon

A conversion rate is defined by the percentage of transactions to sessions during a period of time. It calculates the ratio of people who made a purchase to the total number of people who visited your site. 

Tracking your Amazon FBA conversion rate is important in order to assess your performance. In addition, depending on your customer base and the types of products you sell, there are other metrics that provide valuable context regarding your conversion rate and how to improve it. Other KPIs may include:

  • Add-to-cart numbers
  • Social media shares
  • Newsletter signups
  • Conversion rate per device

You can segment conversion rate data by device to understand your audience and perform Amazon listing optimization accordingly. For example, if the majority of users are adding items to their cart on a mobile device, but failing to make a conversion, how can you encourage them to complete the sale? An email follow-up or display ad may be worth the investment to convert the sale.

A good conversion rate is in line with the average for ecommerce, and ranges between 1.5% and 3%, depending on your sector. By routinely reviewing your store’s product listing analytics, you can catch any recurring dips and strategize ways to increase your conversion rates, Amazon sales and keep them steady.  

Ways to Increase Conversion Rates

There are several strategies to create an optimal buying experience for shoppers and increase conversion rates. It starts with taking a look at the presence of your online store. Similar to a physical storefront, you want to highlight your brand and products in a way that is informative and inviting versus vague and cluttered.

Perform Keyword Research

Start with performing keyword research for your Amazon product page. In order for a shopper to get to the point of conversion, they have to be able to find your product first. Increase your ecommerce store’s online visibility by optimizing your product listing titles and product description according to the search terms highest ranked on the Amazon search engine results page SERPs. 

Update Product Descriptions

Second, write compelling, keyword-rich product descriptions. Be clear, concise, and descriptive. Detail the specifics of your product and highlight any value differentiators. Capture the most important information in a short bullet list, starting with the most sought-after benefits first. 

Display Hi-Res Images

Third, make sure you upload a quality, hi-res product image. Provide different angles of the product, if necessary, to give your audience a clear idea of what to expect and/or how to use it. Even if what you describe with words is exactly what the shopper is looking for, a poor-quality product image can be the reason for a failed conversion. 

These three steps are necessary to improve site visibility and provide an optimal user experience to help boost conversion. Additionally, Amazon marketing strategies increase interest in your brand and drive traffic to your site. Visually friendly platforms like Instagram and TikTok are two of the most popular social media sites today, and they’ve become necessary tools to use for conversions.

Expanding Your ECommerce Business 

Amazon FBA provides a wide range of tools that help you understand associated Amazon FBA fees, access in depth reports, and an array of resources to help ecommerce brands succeed on their platform. The more you do with the data available, the better you can understand your audience and grow your brand. Another way for you to compare costs, profit, and revenue is to use the Amazon FBA revenue calculator

Though Amazon FBA conversion rate is important, tracking multiple metrics allows you to better predict sales and scale your Amazon FBA business. Then, once your business begins to grow, you may have a lucrative opportunity to sell. At Forum Brands, we offer successful Amazon FBA companies cash compensation as we grow their businesses into world-class consumer brands. We work with entrepreneurs who are passionate about their brand and offer everyday products consumers love. 

As part of the qualifying criteria, 70% or more of sales must be through Amazon FBA. Plus, brands must demonstrate a financial success of at least $200K in net profit in the last year. Whether you want to continue to grow your brand or set up your business to eventually sell, focusing your efforts where the highest conversion rates are positions your company to reach a place you want it to be. 


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