How to Find Out Competitor Conversion Rates With Amazon Brand Analytics

How to Find Out Competitor Conversion Rates With Amazon Brand Analytics

How to Find Out Competitor Conversion Rates With Amazon Brand Analytics
By Yasser Sakan in Amazon Product Research Amazon Marketing Tips Last updated on

Take a moment to think about the following. What would you do if you knew the organic Amazon conversion rates of your top competitor’s products for each search term? 

  • Amazon product research — Revolutionary opportunities.
  • Listing optimization — Learn from the best-converting listings.
  • SEO strategy — Focus on the best-converting search terms.

Sounds good, right? The possibilities appear endless. Unfortunately, the folks at Amazon have not handed anyone this superpower yet. Or have they?

  • In early 2019, Amazon rolled out the Amazon Brand Analytics report. For the first time, brand-registered sellers could now see data that was previously only accessible to vendors through the ARA basic report.

Amazon Brand Analytics Overview

With brand analytics, brand-registered sellers can now gain amazing new insights with the following tools:

Amazon Search Term Report

The Amazon Search Term Report in Amazon Brand Analytics provides data on Amazon search terms and Amazon search volume (not the absolute volume, but a relative ranking). For the purpose of this article, these are the metrics we’re most interested in:

  • Top 3 clicked ASINs for each search term.
  • Click share for each ASIN
  • Conversion share for each ASIN

You can search for a particular search term and the report will show you the top 3 clicked ASINs for that search term within the chosen time frame.

Alternatively, you can also search for an ASIN and the report will show you all search terms where the ASIN is amongst the top 3 clicked.

Amazon Brand Analytics

Amazon Brand Analytics

Amazon Brand Analytics

Market Basket Analysis

With this report in Amazon Brand Analytics see which products your customers are buying together to identify cross-selling and bundling opportunities.

Item Comparison and Alternative Purchase Behavior

With this report in Amazon Brand Analytics see which other products Amazon customers were comparing (viewing) with your products.

Clearly, these insights are invaluable for market research, SEO, and PPC strategy. But where is the competitor’s conversion rate we keep talking about?

The Hack (How to find the best converting ASINs)

Your competitor’s conversion rates aren’t part of the Amazon Search Term Report — but you can use it to figure them out.

In order to understand how to derive the conversion rates, we need to take a closer look at the Click Share and Conversion Share from the Amazon Search Term Report.

Amazon Brand Analyitcs

Click Share

The click share is the percentage of the total clicks the product received for the given search term in the chosen time frame, i.e.

Amazon Brand Analytics

In the previous example, the second-most clicked ASIN for the search term “laptop” received 7.38% of all the clicks that were generated through searches for “laptop”.

Conversion Share

The Conversion Share is the percentage of conversions that the product achieved in comparison to the total conversions that resulted from that search term in the chosen time frame, i.e.

Amazon Brand Analytics

In the previous example, the second-most clicked ASIN for the search term “laptop” achieved 4.35% of all the conversions that were generated through searches for “laptop”.

What happens when we divide Conversion Share by Click Share?

Now that you know the definitions, let’s see what you can find out about conversion rates using the conversion share and click share. Have a look at the following calculation:

Brand Analytics

The final step shows you that the ASIN conversion rate is X times higher (or lower) than the average conversion rate for this search term.

Amazon Brand Analytics

What does X mean?

The following example illustrates what this equation actually tells you.

 

Amazon Brand Analytics
Amazon Brand Analytics

If the result here was “1”, the ASIN’s conversion rate would be just as high as the average conversion rate for the search term “laptop”. 

  • The variable X, therefore,  tells you that the conversion rate of the #1 clicked ASIN for the search term “laptop” is 12.8% higher than the average conversion rate for all conversions resulting from all Amazon searches for “laptop”.
conversion rate for laptop

And yes, that is one heck of an insight!

  • Learn how we found the best converting garlic press and what we learned from it. Download Case Study.

Let’s further illustrate the meaning of X with the following scenario. 

 Let’s say

  • the total number of clicks for the search term “laptop” = 111,456
  • the total conversions for the “laptop” searches = 4,786.

If we combine this with the previous numbers we get the following results:

  • the average conversion rate for all laptop searches = 4,786/111,456= 4.29%
  • #1 clicked product absolute click share = 111,456 * 15.55%= 17331 (clicks)
  • #1 clicked product absolute conversion share =  4,786 * 17.55%= 840 (conversions)
  • Conversion rate for #1 clicked ASIN →  840/17331 = 4.85%

Now, if we compare those two conversion rates (average vs. ASIN), we see that the ASIN conversion rate is actually 12,8% higher than the average conversion rate.

  • 4.29% (average conversion rate) * 1,128 =  4.85% (ASIN conversion rate)

Here is how you calculate actual competitor conversion rates!

You can already gain amazing new insights with relative conversion rates. These new findings will allow you to make better decisions for market and product research, listing optimization, and many other topics (see the next section for more info).

On top of these insights, we want to also show you how to find the actual conversion rates as well. 

Note: This hack only works if all your ASIN’s clicks and conversions for a particular search term can be attributed to PPC alone, and if it is amongst the top 3 clicked. This means that at least for some search terms, you cannot rank organically on the first few pages, but instead need to spend enough on PPC to be on top of search results. This way you ensure that you will be amongst the 3 most clicked ASINs.

This sounds like a very rare scenario, but you’ve actually all been there.

During the launch of a new product, most of your sales will be attributed to PPC, because you are not yet ranking organically. This phase is the perfect time to break out our little hack and find out your own, the average, and your competitor’s actual conversion rates.

When the above applies, go to your PPC report and check how many actual sales and clicks you had for a particular search term. Follow the next steps to derive the search term’s average conversion and your competitor’s conversion rates for this search term.

Here is an example:

Let’s say you were able to observe 1210 clicks and 156 conversions for the search term “sneaker” over the last week, and you are the number 1 clicked ASIN for this search term.

Amazon Brand Analytics

Using our actual click and sales numbers we can calculate the average conversion rate for the search term “sneaker”:

Amazon Brand Analytics
Amazon Brand Analytics

With this insight, you can now calculate the conversion rate of the other 2 ASINs:

Amazon Brand Analytics

For the second most clicked ASIN, the actual conversion would be: 

Amazon Brand Analytics

So the actual conversion rate of the 2nd most clicked ASIN would be 17.329%

How to use these insights to stay ahead of the competition

For Amazon product research

Use the Sellics niche analyzer to identify the niche you want to be selling in. Then use the insights about conversion rates to see which products are converting the best. This will be an immense help in deciding which product to source, which price point to offer, and how to create your listing.

Even if there is a number of very similar options that you could source, if you find them amongst the 3 top clicked ASINs you will know which models convert best (and even for which search terms)

  • Learn how we found the best converting garlic press and what we learned from it. Download Case Study.

For Amazon SEO

Know which competitors have the highest conversion rates and why.

With Brand Analytics, you can now pinpoint slight differences in conversions and learn which listings convert the best.

Look at the ASINs with the highest click share, they are probably superior here:

  • Better main image.
  • More desirable price (not always the cheapest).
  • Better title.
  • High review count.
  • Better review average.

When an ASIN has a similar click share but a higher conversion rate, the reasons could be the following:

  • More desirable price (not always the cheapest)
  • High review count
  • Better review average

Also, check for:

  • Better copy.
  • Video in listing.
  • EBC

Learn from these insights and implement the lessons in your listing.

Know what search terms to push for organic rankings

When you launch a new product you will want to rank for a number of search terms. After optimizing your listing for these search terms, you want to make sure people see and buy your product when they search using these terms. 

Some sellers use giveaways with a double step URL. We strongly advise against this practice: It’s clearly against Amazon TOS and Amazon has been blacklisting the accounts of these sellers.

Another way, the compliant way, is to bid aggressively on search terms that you want to rank for.

You may have noticed that, even if you achieve the required sales velocity and start ranking for the search terms, you might not stick in that organic ranking position once you lower your PPC spend. This is because Amazon does not consider your ASIN relevant enough for this search term — and the main factor for relevancy is the conversion rate.

So how can you avoid spending a lot of money trying to rank for search terms that won’t stick organically? You use our little hack to evaluate the search terms that you have been pushing.

When your conversion rate is lower than your competitor’s ASIN: stop the spending.  When the conversion rate is higher, double down on the spending. This way, you can stop spending a lot of money on search terms that won’t stick and focus on the ones that do.

Conclusion

First of all, get your brand registered. You need this to access Amazon Brand Analytics. As a bonus, Amazon is giving away more and more perks for brand-registered sellers and there is no end in sight.

For the first time, you can get an idea of how your competitors’ ASINs are converting. Just knowing the relative conversion rate has immense implications. 

We have only listed a few use cases for Amazon Product Research, Amazon SEO etc., but knowing the relative conversion rates of your competitors will be useful in almost all aspects of your Amazon business.

Be creative — and please share with us how you are using these new powers! And always remember: With great power comes great responsibility. 

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