How to Find Massive Growth Opportunities in Amazon Seller Reports
You could be missing out on tremendous opportunities to grow your sales if you don’t use metrics found in Amazon seller reports.
Growing on Amazon is a challenge for every seller – but there could be growth opportunities right in front of your eyes via the Amazon seller reports. Every seller should be familiar with Seller Central Business Reports, but are you using them correctly?
Understanding the data in your business reports can be crucial to how you manage your Amazon account. If you feel like your growth is stuck on Amazon, focusing on these two critical metrics can help you break through your sales barrier to the next level.
The Two Most Important Amazon Seller Central Metrics
The Business Reports section of Amazon can be intimidating to many because there is so much data presented in these Amazon seller reports. However, you need to cut through the nonsense and focus on the most important aspects. Units ordered and total sales are important, but they are driven by two other metrics.
All Amazon sellers face the same two challenges: getting traffic to their listings and turning that traffic into customers. The best way to measure these metrics is by looking at your sessions (traffic) and unit sessions percentage (conversion rate).
Your listing isn’t selling, or not selling as well as it could, because it either doesn’t have enough traffic or it doesn’t convert enough of that traffic to customers.
Increasing traffic will require testing. It can involve testing new front-end content, keywords, advertising campaigns, or even simply resolving some restricting backend problems.
But what are the best ways to increase your conversion rate?
Optimizing your listing with great images certainly helps but using one of the Amazon advertising features can work even better.
How Seller Central Coupons Can Drastically Grow Sales
In our opinion at AMZ Advisers, the benefits of coupons are so much greater than that of promotions. Firstly, coupons give your listings more visibility on Amazon. Your product will show up with a little coupon notification on search results pages. These discount codes also place your product on the “Today’s Deals” page under the Coupons section. Getting your product in front of more people is always a good idea.
The more important benefit we’ve seen is the effect it has on conversion rates. We have been able to boost our client’s conversion rates drastically simply by implementing coupons into their marketing strategy.
Here is how one client was doing before coupons:
- Average monthly sales: $18,000
- Top selling product conversion rate: .15%
- Top traffic product sessions per month: 5,000
Those last two bullet points should be shocking to you. 5,000 visitors and only eight sales per month! After optimizing their listing with new content as well as implementing coupons and some advertising campaigns, here were the results two months later:
- Average monthly sales: over $75,000
- Top selling product conversion rate: 3.65% (2273% increase)
- Top traffic product sessions: 7,321
Going from selling eight units per month on their top traffic listing to 267 was unbelievable to our client. We were still well below the average Amazon conversion rate, but a small movement on the conversion rate had a massive change in the overall sales. The exact same strategy will work on any Amazon Seller Central account.
How to Identify the Opportunities in Your Seller Central Account
Increasing sales and optimizing your Amazon account will be a constant and ongoing process. It all starts by always using the data presented to you by Amazon seller reports via the Seller Central Business Reports section. You should be analyzing your business data each month to see where new opportunities exist.
Check Conversion Rates
Start by looking at your top traffic listings and see how these listings are converting. Listings that have a conversion rate below 8% (the average Amazon conversion rate) are a good opportunity to test coupons on. These are the easiest opportunities for sales growth because small movements in conversions can lead to a massive increase in sales.
Next, focus on your top converting listings and see where your sessions numbers are. We typically will try to focus on listings that have greater than 100 sessions per month. Why?
Why the Number of Sessions is Crucial
If your listing has less than 100 sessions per month, there could be some other issue that is holding it back. What you should do is check your listings’ categories to ensure that the title, bullets, and product description comply with Amazon’s style guidelines for your category. Other backend issues such as images that could also be suppressing your listing.
Now that we have your listings with 100 sessions per month and good conversion rates, we need to see how increasing the traffic affects the conversion rate. Start with driving additional traffic using Sponsored Ads. If that doesn’t work then try split testing your content to see how that increases traffic.
The end goal is to increase your sales velocity through conversions rates, which is a huge keyword relevancy signal for Amazon. Maximizing your sales by optimizing your sessions and conversion rates will continue to lead to increased relevancy and visibility in Amazon search results. But don’t run continuous coupons on your listings – that act will only cost you profit and cheapen your brand.
It will be an ongoing process of focusing on these two metrics in your Amazon seller reports. Solving a traffic or conversion problem means that it is time to switch your focus to the other metric. Managing your Amazon account by the data given to you in your Seller Central Business Reports is a great starting point for growing your account over time.
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- How to Find Massive Growth Opportunities in Amazon Seller Reports - September 24, 2018