Identifying Your Key Issues

There are only three metrics in your entire Amazon account that dictate your success.

Impressions - How many people see your product

Click Through Rate (CTR) - How many people view your page

Conversion Rate (CVR)- How many people buy your product

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These three metrics will determine your overall sales, organic sales, ACOS, TACOS, and every other metric in the account that matters. Sales is just multiplying them together, ACOS is higher or lower depending on conversion rate, therefore focusing on improving these areas simplifies the process of determining what the weak link is and how to fix it. Let's break them down one by one.

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Impressions

This is the easy one, how many people saw your product? There are only two ways to increase this, spending more money on ads or improving your organic ranking. You can learn everything you need to know about organic ranking here https://www.amazonppc.co.uk/post/seo-how-to-rank-number-one-in-amazon

Spending more money on ads can be done by increasing your bids, adding more targets (both keyword or product), creating more ad types or pushing top of search multipliers, which is basically increasing bids.

That's it. There's literally nothing else you can do here. Therefore the question becomes are your impressions too low? I would argue this comes down to whether your CTR and CVR are good enough. You wouldn't want to shout and scream about your product if nobody pays it any attention or wants to buy it so don't push more impressions if the other metrics aren't in a position to succeed.

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Click Through Rate (CTR)

CTR = Clicks/Impressions In other words, how many people looked at your product and became interested enough to give it more than a passing glance? There are only 5 areas you can work on to improve this which you can learn about here https://www.amazonppc.co.uk/post/amazon-listing-optimisation

Average CTR on ads is around 0.4% therefore if you are massively under this, it's worth looking into which of the 5 areas you can improve upon. Start testing this immediately. Getting your CTR up from 0.2% to 0.4% literally doubles the amount of traffic you receive. This obviously costs more in advertising, as you're paying per click, but in organic that is double the FREE traffic, meaning double the sales at no cost which in turn improves organic ranking and gets you on that virtuous upwards cycle. This is far easier than improving your CVR and therefore I'd advise working on this before CVR as it's normally a quick change that can make a big difference.

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Conversion Rate (CVR)

Conversion rate = Orders/Clicks. in other words it is how many people clicked compared to how many people bought.  This is the trickiest of the three to work on but arguably gives the largest impact. Improve your conversion rate from 10-15% and you're making 50% more money without spending a penny more. you can learn about the specifics of how to do this here https://www.amazonppc.co.uk/post/cracking-the-code-proven-techniques-for-effective-amazon-listing-optimization-part-2-conversion-rate-optimisation

If you have a high ACOS it's a sure sign your CVR is poor because people are clicking, which you're paying for, but they're not buying. The average conversion rate on amazon is around 10-15% but this is a very inaccurate baseline because it is going to vary massively from product to product based on price, reviews, category, etc. This is what we expect based on the price point

<$20 - 20%

$20-50 - 15%

$50-100 - 10%

>$100 - 5%

This will then vary based on how well ranked your product is in the category so if you're a number one best seller with a $25 item you might expect closer to 20% conversion rate and if you're a brand new product for $75 you might expect a 5% conversion rate. Our general guideline is if you're established your conversion rate should be at least the level above but closer to 50% higher. If you're relatively new, not just launching with 0 reviews, but relatively new then you shouldn't be less than half these numbers. if you are then start working on your conversion rate

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These three simple metrics monitor the entire customer journey from viewing to purchasing so if you're looking to take a quick snapshot of your business this is the way to do it.