Every single step involved in the process of becoming an amazon seller has to be given utmost importance. Right from attracting a customer from viewing your product to persuading them to purchase it, every step has to be taken with a clear plan and execution. In this post we will walk through all that we need to know about amazon’s click through rate, a metric that measures how successfully you attract the buyers to view your product.

Amazon Click Through Rate (CTR)

Amazon Click Through Rate (CTR) is the ratio of shoppers that click on your ad to the number of times it is shown.  Each of the campaigns and keywords have a specific CTR that measures how successfully your ad compelled the customers to view your product.

Why do we need a good CTR?

Technically, it is useless to spend a hundred dollars on your product’s  ad if it isn’t attracting customers to at least view it. The success of your ad is measured by the amount of clicks you get for the number of times your ad is seen.  It reveals the relevancy of your products.

It is therefore quite obvious that a high CTR brings more buyers to your product page thereby increasing sales.

What can be considered as a good or high CTR?

The average of click through rate 0.4% . Anything above this average is considered as a decent CTR. If your CTR is less than 0.3%, it either means that customers are not impressed by your ad or your ad is irrelevant to what they’re looking for.  This means your ad should get at least 20 clicks for 500 ad impressions.

How to increase this Click Through Rate (CTR)?

There are few factors that greatly affect your CTR and all you need to do is learn to optimize these factors to increase the CTR.

    • Image
    • Title 
    • Relevant Keywords
    • Best Seller
    • Reviews
    • Fulfilled by Amazon
    • Price

 

  • Image

First impression is the best impression!!

Optimizing your product image is the most important thing that should be paid attention to as this is the only image of your product that the buyer sees before clicking.  It is the single biggest factor that contributes to your CTR.

How to optimize your ad image?

Make sure that your image looks professional.  This would make your product look trustworthy at the first glance. Your ad image should emphasize the key details of  your product.

Usually, the image ratio is either a square 1×1 or a vertical ratio of 58×45. The optimum size for the square image is 2000px X 2000px. This way, the image can facilitate the zoom functionality without having resolution issues.

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There are few things you must keep in mind while uploading an image for your product.

    • The image should also be of high quality to attract the buyers into clicking your ad.
    • Amazon’s algorithm checks for white background. It is advisable to remove the background and replace it with pure white screen.
    • Take the picture from side angles to give it a 3-dimensional view.

 

  • Title 

The title is the first text that a buyer would look at. This is why emphasizing the main keyword in the title is quite important. The title also contains other text areas. Use this region to accentuate main features of your product.

This descriptive text lets buyers know that your product is the one they are looking for and they click your product at the snap of a finger.

  • Relevant Keywords

Amazon lets you know which keywords bring in more traffic (high CTR). CTR tells you whether your ads are attracting the target audience. You can then take the less relevant keywords off your list to reduce your cost.

 Higher the CTR, more relevant are your keywords and more successful is your ad in attracting your target audience.

  • Best Seller

The importance of this badge is needless to say.  A buyer would always (seriously always), prefer to purchase a product that is best in market. From a customer’s perspective, if you happen to search for a good and come across a best selling product, would you spare a glance at the others?

  • Reviews

This is another key factor that a buyer would look at before taking out his/her time to click and view your product. Usually, customers think of a product with more reviews as more reliable as buyers trust buyers.

The first headset has a rating of 4 out of 5 and it has 1,830 ratings while the second one has only six ratings. Though the latter has a slightly better rating of 4.5 out of 5, the first product looks reliable as it depicts the opinions of around 1800 customers.

  • Fulfilled by Amazon (FBA)

More than half of the shoppers are usually prime account holders. Who would wait for about a week when they can get it within a day or two? Only the products Fulfilled by Amazon are eligible for Amazon Prime. Moreover, Prime customers spend twice more than a regular customer. If there is product that as good as yours in the listing, but you have an added advantage of Amazon Prime delivery, the buyer would choose yours without a second thought.

Hence, Fulfillment by Amazon is a much better option than it seems to be.

  • Price

Needless to say, price is one of the most significant factors that the customers use to decide whether or not to consider your product. It also influences everything from cash flow to inventory. Whether you incur a profit or loss is solely dependent on how you price your product. How does the product’s price affect your sales? If your product is too low priced, the chances that the buyers would assume it to be of low quality are highly likely. Likewise, if you overprice it many of them wouldn’t bother to spare a glance.

Now, the question is, how should you price your product?

You should check if the price is reasonable from both your and the customers’ perspective. Firstly, calculate all the costs involved like cost of raw materials, shipping costs and fixed costs. Do not forget to include the promotional cost as you will have to pay a certain amount to amazon in the form of ppc and keyword bids. Incorporate a certain percentage of profit margin. Sum up all of these to set your product price. Once you’ve decided on the price, view this from a buyer’s perspective. If you ever happen to come across this product as a buyer, would you consider buying it? You can even ask a friend or family for their views on the same.

Also, do not let the fear of setting up the wrong price hold you back from launching your product. Amazon selling includes lot of learning from experimenting. Set a price, launch the product and see how it goes.

Summing Up

Advertising is a key factor that plays a major role in bringing your customers to you. The above factors help increase the traffic, thus, increasing sales.