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Amazon PPC - Conversion Rate Optimization

Published on June 18, 2020

About this video

Did you know that 50% of online information is being digested through video format? In this video, we're covering video format as one of the main drivers of conversion rate improvement. One of the most commonly overlooked metrics on Amazon is the conversion rate (also called unit session percentage). Here we share important information about how to calculate your total conversion rate and PPC conversion rate, where to look for it, and why is it important. Since with conversion rates, the main focus is on the listing optimization itself, we share ideas on how you could improve your own listing. PPC can only contribute your conversion rates to the extent of PPC sales - meaning: the impact of PPC on your listing's conversion rate will be directly proportional to the percentage of PPC sales in your total sales. Learn to find cheap solutions to add more videos to your listing, and what ad formats to use for protective advertising.

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Transcript

Hi everyone, this is Yelena from Amazonia PPC and today I'm going to share tips about conversion rates. Uh last week I held a webinar where a lot of uh attendees asked me how to fix conversion rates on their listings and how to generate more sales from the existing traffic. So, I'm going to share actionable advice that you can apply in your account today and let me know if you have any questions in the in the comment section. So, first of all, what is conversion rate? Conversion rate or unit session percentage is also called unit session percentage in the business reports. In the advertising uh interface, in the search term report, it's going to be called conversion rate, which is basically the same thing. It's a metric that shows you out of uh for example, 1,000 visitors, how many visitors actually made a purchase of your product have purchased your product and that's expressed in percentages. So, you understand more clearly what's the what's the interest of the marketplace to your specific product each each of them basically because there's a breakdown by ASIN, so you can understand easily how each product is performing and the conversion rates are super important because they are one of the most important metrics when you're doing product launches because you need to send a signal to Amazon that you have a product that marketplace needs, that marketplace reacts reacts well to. So, that's the uh that's one of the most important metrics when you're doing product launch. The other one is click-through rate to make sure that you know first of all, that they are searching for your product and once they're searching for the product that they find it, they click on it and they end up purchasing it. So, that's the one of the reasons why conversion rate is and click-through rate is something that a lot of sellers keep in mind when they're keep close attention to when they're doing product launches. Um here in the first frame, I chose a just like a random product, coffee grinder, to show you basically what a good performing looks listing looks like. And in the first frame, when someone clicks on the whether that's an ad, whether that's an organic result, this is the first thing they see once they open the product page. Uh product title, images, um ratings, bullet points, the price, the buy box and the video, possibly the video. So, here in this first frame, you have to make sure you're 100% clear on what the product is with the bullet points. In the copywriting, you should never assume that the customer is will read the text. That's number one mistake with copywriting is assuming that it will be read. So, you have to make it attention-grabbing. So, uh basically here in this example, they could probably make a better example of these uh first couple of words that are in this uh in this space to make sure that they stand out better, that they grab attention. So, that's possibly what they could have done better, but um again, this is the first frame where they actually come to pick up information. So, you have to be 100% clear what the product is, what it does, what are some of the main features uh of the product, uh benefits and um basically don't uh express features, uh functionalities of the products if you're not um trying to uh tie a benefit to every product feature and functionality, which basically um it's very hard to do through product images, but with a little creativity, you should be able to pull it off. So, for example, they are um they're using infographics in this case. It's a very very good example. Make sure you um for example, this is a versatile grinding uses, great for coffee and spices, meaning that this product could be used for grinding all other things aside from coffee. Uh and that's what usually is expected of a coffee grinder a grinder in the in general. So, that's what why they're expressing it. And one of the most important things that I'm going to talk about in this uh video is the power of product video for conversion rates. Um recently, Amazon has really enabled the bandwidth for sellers to upload a lot of videos per ASIN. And that's one of the things that's like super important for you because it not only enables you to keep your customers' attention on your listing, but also to like, you know, improve um your market share because these videos, they circle around not only on your listings, but also on your com- competitor's listings only if you have the video. So, if your product title is in place, uh bullet points are carefully written to grab attention, your images are clear, um your price is on point like in this case it is, there's even a discount, um and your product video is something and you win the buy box. Of course, the product video is something that we need to talk about. So, here on this example, you can see there are already two display ads competing with this product and then we have the frequently bought together option. So, these are already three ways how uh customer's attention is driven away from your listing. So, possibly if it's uh in your financial possibility, make sure you target your own products through product display to make sure that this coverage here on the page is won by you. So, you have to do this with exceptionally high bids, but this is something that you do as a protective measure to make sure you keep your customers' attention on your listing. It's always easier to um keep them on the listing than to win that additional click from a new customer. So, it's always easier to do that. So, that's the coverage of the display ads and then here below we have the fre- frequently bought together section, which is a section that Amazon kind of like puts together and you can't really um you can't really affect this part, but here below the sponsored products related to this item is the section where you should also uh cover with your products with aggressive bidding, meaning you will bid on your own products from your own portfolio to make sure that they don't escape, the customers don't escape your listing and just click on a competitor's listing. Then we have the another layer of sponsored results. Here um this section, you could fill out the section through either through automated campaigns, through complements and substitutes targeting, either through uh product targeting uh very specific ASIN level. More precise is going to be the specific ASIN level. It's going to save you money. So, I recommend you use that to cover this section over here. So, basically it's the already like a second layer of protecting your traffic from going to the competitor's listings. Then we have the from the manufacturer and the product description sections, which a lot of uh listings convert a lot of sellers convert it to A+ content. That's not something that these guys do. I would highly recommend them to do this and they can um basically, they're beautiful templates, beautiful layouts that they could use to add A+ content. It's no longer as effective in terms of conversion rates as it used to be like a year ago or 2 years ago. It was premium. Whoever had it, they were the king, you know? But uh it still affects. It's like a more like a default setting. It's become A+ has become, you know, like a regular product description like bullet points. You just simply have to have it. It's a it's your chance to win an additional page uh page size uh frame size on the page to make sure you keep your customers on the listing. That's why it's super important to have it. Just like this regular text in the product description doesn't really do the trick, you know, if they depended on it uh like they depend on their reviews right now. Their reviews are great. So, basically this product is a mature product. It's selling itself, not necessarily uh with low conversion rates, but if this wasn't the case, then they they would be playing the A+ content card, which they aren't doing now. This doesn't mean they don't need it. They have to have it, but they aren't doing it for some reason. So, if for any reason your customer, your visitor has scrolled all the way down and haven't already used the previous space to learn about your product enough to help them decide, make a purchase, they will scroll down here in the videos, under videos for this product videos related uh for related products. Why is this so important? Uh because um a lot of them will just scroll down because they're looking for more content, right? They're not in an uh in a situation where they can physically touch the product. So, the first next best thing for them is to watch a video of it like someone else either an unboxing video, either a video that will express the product's highlights like you know, uh under the main image and the the rest of the six images in the list at the beginning, you should have a product video that that's uh called a product highlights video. It just shows basically how do you use the product, what are the speeds, what are the options uh for using the product and just like how it looks like. Uh just think of a customer entering into a store, retail store, physically touching the product like, you know, spinning it around, seeing how it looks like and just like opening it, assembling it, uh dismantling it, stuff like that. On the white surface, think of a it's a it's a very similar thing to the main image in the imagery world. World, that's the product highlights video and you should have it in the beginning here in the first frame, like these guys do. This This is a serious seller, obviously, that's why they've invested. Usually, these videos, the product highlights videos, they cost anywhere between The lowest would $500 to make them up to 1,000, 2,000, depending on the level of production that you want involved with them. Then, we have other product video types that you can use in this section, videos for this product, to keep your customers attention in place. The reason why you want to use this is because if they happen to click on any of the related products, they're going to be driven to the competitors' listings. Here you can see, here are links, you know, when you set up a product video to upload it in your Seller Central account. You can choose what ASINs it's going to affect, like what ASINs are related to that video and then that basically links them here. So, whoever clicks on these products here, they're going to the that specific product detail page and you want that product detail page to be your page. So, just invest this huge chunk of money making a good product highlight video that you will add to product images that will like a logical continuation of the product images and then populate this with as many videos as possibly. Have two pages of them, which is basically like what? Maybe like 10 videos in total. So, some of the cheap ways how you could produce this is yourself, like unboxing video, customer review videos. Ask for your customers to record a video. There are different ways in which you could do this. You could also solicit some reviews, you know, from your friends. Make sure that they make It doesn't necessarily have to be a high production video. Just It's only role is to keep your customers focused on the page instead of driving it away to some someone else's listing. Then, you could do how-to videos, explainer videos. Like, for example, there's There's a gardening kit that contains the seeds and some of the planters and things like that. Where On that listing, this woman was explaining how to see how to plant something, for example. That's a how-to video. So, how to use this coffee grinder for different types of seeds, at what speed and stuff like that, like recipes. This all could belong to this video section in your product videos. It would be valuable investment of your time. It does not necessarily has to be something super expensive. Also, explainer videos, customer experience video is a video type that it's basically showing It's like a lifestyle image. It's just not an image, it's a video, basically. And I mentioned customer reviews, super useful because they practically show your product being product in action. So, that's the That's that and once we scroll down Sorry, we see more examples of these. These are automated campaign results and etc. Make sure you answer all of your customer questions and train your customer support team to use keywords when they're doing this. When they're answering customer questions, basically, you you should use that for ranking because it's also on your page. So, give them a keyword list of keywords that are relevant to your product and since they already are answering the all these questions, then this is something that This is the place to use the keywords and I sort of missed to mention this is a display. Add probably in beta for some additional formats that I'm not really familiar with. But I'm going to check it out. Anyways, let's scroll down to the customer reviews. This is also, of course, if the reviews are great in quality and in quantity, of course, it's going to have effects on your conversion rates, but there's this huge difference between good reviews that have no images and good reviews that have images. Make sure you somehow encourage your customers to show to take a picture, right? They could do this from their mobile phone. It doesn't matter. It's still going to give you great support in sales. Then, when we scroll down by the end of this page, you can see couple more organic results and display ads and something additional. So, that's about it when it comes to conversion rates. On the PPC side, you could always pause non-converting keywords to stop sending Amazon a signal that your listing has a low conversion rate. You could always consider decreasing price of your listing. That almost always has a very positive effect on conversion rates as long as you can afford it for the through profit margins. Make sure that your inventory is always in stock because in order to rank well and to have high conversion rates, Amazon is going to put you in the best placements organically if they estimate that your sales velocity relative to your inventory can support an increase in sales. So, make sure you're always in stock. Make sure that that you use coupons, that you use different types of promotions and external traffic to improve your ranking of your listings and conversion rates in general. So, if you have any other tips that I might have missed that I couldn't mention today, feel free to share them in the comment section. Happy to hear your thoughts on this. Thank you for watching and have a nice day.

Frequently asked questions

What is the unit session percentage and where do I find it in Seller Central?

Unit session percentage is Amazon's name for conversion rate on your product listing. It measures the percentage of unique visitor sessions that resulted in a purchase. You find it in Seller Central under Reports, then Business Reports, then Detail Page Sales and Traffic by Parent Item. The metric uses sessions rather than page views, since a single shopper can generate multiple page views in one visit but counts as only one session. A healthy conversion rate for most categories falls between ten and fifteen percent, though high-ticket or high-consideration products typically convert lower and consumables higher.

Why does conversion rate matter for organic ranking and PPC performance at the same time?

Amazon's algorithm interprets a high conversion rate as a signal that your listing is satisfying buyer intent, which it rewards with better organic placement. This creates a compounding effect: better placement drives more traffic, which at the correct conversion rate generates more sales, which reinforces the ranking. On the PPC side, a strong conversion rate means every click you pay for is more likely to result in a sale, which lowers your ACoS. If your conversion rate is poor, increasing ad spend only accelerates the rate at which you spend money without improving profitability. Fixing the listing converts traffic you are already paying for more efficiently.

How can product videos improve conversion rates on Amazon listings?

Videos allow shoppers to see the product in use, understand its dimensions, and visualize how it fits into their life in a way that static images cannot. For products where the physical experience matters, such as kitchen tools, fitness equipment, or anything with an assembly or usage component, a product highlight video that shows the item being unboxed and used is the closest substitute for holding it in a store. Videos also keep the shopper's attention on your listing page longer, reducing the chance they scroll to a competitor's product. Amazon allows sellers to upload multiple videos per ASIN, and having several means your content also appears in the related products video section on competitor detail pages.

What are some low-cost ways to add more videos to my Amazon listing?

A professional product highlight video is worth the investment at the top of your image gallery, but the remaining video slots do not need high production value. Unboxing videos recorded on a phone, how-to or recipe videos for food and kitchen products, and customer review videos all count toward your total. You can ask customers to record a short video of the product in use. The primary function of these additional videos is to hold the shopper's attention on your page and prevent them from clicking away to a competitor's listing, which they would reach if they click on any of the related product links that appear in that section.

How should I use protective advertising to reduce conversion rate loss from competitor ads on my listing?

Your own product detail page contains multiple ad placements that competitors can occupy through product targeting campaigns. To keep shoppers on your listing, bid on your own ASINs through product targeting so that your ads fill those slots rather than a competitor's. If you have a portfolio of complementary products, you can also fill the sponsored products section below your listing with your own items, turning a potential exit point into an upsell opportunity. These protective campaigns typically require higher bids than standard targeting, but the cost should be measured against the value of retaining a shopper who has already shown enough interest to open your listing.

Can pausing non-converting PPC keywords help improve my listing's conversion rate?

Yes. When paid traffic from irrelevant or poorly targeted keywords arrives at your listing and does not convert, it pulls your unit session percentage down. Amazon interprets a declining conversion rate as a relevance signal, which can negatively affect your organic ranking over time. Pausing keywords that are generating clicks without sales removes that diluting effect and allows your conversion rate to reflect the quality of traffic from keywords that are genuinely relevant to your product. This is one of the reasons why regular search term report reviews and negative keyword management are important not just for ACoS but for your overall listing health.