A Practical Guide to the Amazon Conversion Rate

May 31, 2024

What Amazon business wouldn’t like a boost in their conversion rates? Amazon’s average conversion rate is between 10-15%, which is considerably higher than the 1-2% eCommerce average. Given the popularity of Amazon and the trust consumers have in the platform, it’s not surprising that Amazon conversion rates outperform the competition.  

To reach this impressive magic figure, you need to be strategic about converting your potential customers into actual customers. Merch Jar makes this simple by optimizing your Amazon ads and automating the bid adjustment process. This means sellers can get the most out of their ad spend with minimal effort.

If you’re stuck in a low conversion rate loop on Amazon, you’re in the right place. In this article, we’re going to dive into the practical steps for increasing your Amazon conversion rate. 

What is an Amazon Conversion Rate?

An Amazon conversion rate is the percentage rate at which people who click your ad go on to make a purchase. Outside of Amazon, a conversion can mean other things as well, such as signing up for a newsletter or scheduling a phone call. However, as these capabilities don’t exist in the Amazon sphere, a conversion is simply converting a potential customer into a paying customer. 

How Do You Calculate Amazon Conversion Rate?

The equation for calculating your Amazon conversion rate is a simple one. You’ll need the number of people who’ve visited your store or product page and the number of sales you’ve made. You’ll find both of these in your Amazon reports in your seller central dashboard.

It’s better to work out the conversion rate for organic customers and ad customers separately because joining them together won’t be particularly helpful for your marketing efforts. For example, calculating the conversion rate of a product ad might indicate it would be profitable to increase your keyword bid for that ad. Joining this ad conversion rate with an organic one would skew your results and be of little help in strategic planning. 

Once you have your figures, divide your number of orders by the number of visitors. You must then multiply it by 100 to get your percentage. 

Let’s pretend you have 300 visitors click through to your product page from a sponsored product ad. 10 of those go on to make a purchase. The calculation would be:

10/300 = 0.033

0.33 x 100 = 3.33%

This is a low figure compared to the Amazon average. By learning this conversion rate, you can take steps to improve it. We’ll get into that soon. 

Things to Factor into Your Amazon Conversion Rate

  • Content quality: High-quality product descriptions and clear, crisp images might entice more sales. This, in turn, can boost your product’s placement on Amazon’s product results pages. More conversions tell Amazon’s algorithm that your product meets the needs of customers and their search queries. 
  • Product selection: You might have the best product descriptions, images, and ads in the world, but if people don’t want your product, they’re not likely to buy it. This will negatively impact your conversion rate. Be sure to conduct thorough market research before deciding what to sell so you’re meeting a demand. Homeware and cookware, for example, are both solid, high-selling categories on Amazon. You also want to factor in the competitiveness of your products. 
  • Keyword choice: The right keywords can have a tremendous effect on your conversion rates. For optimum Amazon ad management, keywords need to be relevant to your product; the more relevant, the better. If, for example, you choose a keyword that doesn’t strictly apply to your product or is very loosely tied to it, you’d show up in searches but won’t get many sales. Sales are the ultimate goal. Advertising to people who aren’t looking for your product serves no purpose, and it will lower your conversion rate. This could negatively impact your placement in searches. 

How to Maximize Your Amazon Conversion Rate

Now we get to the meat of the article. We’re going to show you practical steps that you can take to maximize your Amazon conversion rates.

Optimize Your Images

As mentioned earlier, a high conversion rate requires more than sloppy images and text. Images need to be clear and descriptive, showing your product from multiple angles and in all its glory. If possible, work with a professional photographer to capture quality images of your product. 

Incorporating text into your images is also a good idea. This is an opportunity to highlight the best features of your product and helps potential customers understand what to expect from it. You might also indicate how you’d use the product, as in the example below:

Use Amazon Ads Partners

Amazon has lots of ad partners to choose from to work with. From Amazon marketing services to ad automation software, they exist to help Amazon sellers meet their goals and ultimately succeed on the platform. 

Merch Jar is one example of automated bid management and ad optimization software. Merch Jar takes over many of the time-consuming ad-related tasks, like bid adjustment and smart advertising, so businesses can direct their focus toward growing their business. 

Keep Your Prices Competitive

Price is very often the deciding factor when it comes to buying. With Amazon being a very transparent marketplace, if your prices are far higher than competitors, you’re going to stick out, and not necessarily in a good way. 

Conduct research before pricing your products. Keeping in line with your competitors is normally the less risky option. However, if you feel your product deserves a higher price tag, you need to clearly communicate the reasons why in your listing. There are many people out there willing to pay premiums for better quality items and those with more functionality. You just need to show what makes your product unique to, and better than, similar, less expensive ones. 

This is where your image text can help. In the example image below, you’ll clearly see all the top features that make this glove an appealing choice. 

Leverage Reviews

Reviews can make or break a business, whether an Amazon one or otherwise. When shopping online, consumers often want social proof before committing to a purchase. In fact, according to a survey conducted in 2021, 54.7% of consumers read at least four reviews before making a purchasing decision. This makes reviews ultra important for any business. 

Of course, waiting around for reviews that don’t come is frustrating. Luckily, Amazon’s tackled this problem head-on by including a ‘Request a review’ button in Seller Central accounts. With this button, sellers can send messages to their customers requesting a review of their purchase. 

Reviews will automatically be displayed on your product page. Be sure to address any issues in a timely manner to avoid the possibility of receiving negative reviews. 

Sign Up and Take Part in FBA

FBA stands for ‘Fulfilled by Amazon’. FBA sellers, both FBA private label sellers and arbitrage sellers, send their products in bulk to an Amazon warehouse, where the company takes care of shipping for them. The conversion-boosting part of FBA comes with secure, fast, and free delivery for Amazon Prime members. There are an estimated 200 million Prime members around the world, so the potential here is huge. 


The more of the above steps you take, the higher your chances of generating a good conversion rate. Be sure to measure and test your Amazon conversion-boosting tactics to see what works and what doesn’t. 

If you need a bigger helping hand with optimizing your Amazon ads, consider signing up to Merch Jar to automate your bids and maximize your ROI. You can get a free trial of our software to take your ads to new heights.