If sellers know the conversion rate of competitors, they can understand the market reaction of the product, optimize the Listing, and adjust the SEO strategy. So how to get a competitor's conversion rate? We can utilize the Amazon Brand Analytics report.
Brand Analytics Report
In early 2019, Amazon launched the Brand Analytics report, which allows brand registered sellers to view data previously only available to VC. These data reports include:
Amazon Search Term Report
Brand Analytics provides the Amazon Search Term Report, including search terms and their search volume (relative search ranking). There are three data that we need to pay close attention to:
1.The top 3 ASINs with the most clicks of each search term.
2.Click share of each ASIN.
3.Conversion share of each ASIN.
After searching for a specific keyword, the report will provide 3 ASINs with the most clicks during the selected period. You can also search for a ASIN, and the report will provide search terms that brought the most clicks to this ASIN.
Market Basket Analysis
It provides the product data of customer consumption and helps sellers find sales opportunities.
Item Comparison and Alternative Purchase Behavior
It shows which products customers has compared.
Of course, you can't find competitors' conversion rates directly from Amazon Search Term Report, but you can calculate it.
Firstly, let’s know about the “click share” and “conversion share” in the report:
Click share refers to clicks that the ASIN gets as a percentage of the total clicks of the search term.
For example, the click share is 7.38% in the above image, which means that this ASIN accounted for 7.38% of the total clicks on the search term “laptop”.
Conversion share refers to the conversion that the ASIN gets as a percentage of the total conversion of the search term.
How to utilize these two percentages to calculate the conversion rate?
Let's start with a set of formulas:
We assume that: ASIN conversion share/ ASIN click share = X. So what does this “X” represent?
After complicated mathematical operations, we can finally conclude that the conversion rate of an ASIN is X times the conversion rate of a search term:
Let’s just utilize the actual data to calculate it:
According to the formula:
ASIN conversion share/ ASIN click share = X
We can figure out that: X = 1.128
X = 1 means that the conversion rate of this ASIN is similar to the average conversion rate of “laptop”.
X = 1.128 means that the conversion rate of this ASIN is 12.8% higher than the average conversion rate of “laptop”.
Calculate competitors' conversion rate
Please note that this calculation technique only works if your ASIN’s clicks and conversions are all from PPC, and ranks in the top 3 of the Amazon Search Term Report.
This may seem impossible, but when you launch a new product, most of your sales come from PPC, because there is no natural ranking at this time. So this is the best time to use this technique to calculate the average conversion rate and your competitors’ conversion rate.
Before calculating, you need to view PPC report to find out the sales and clicks of a certain ASIN’s search term.
Then follow these steps to calculate your competitors’ conversion rate.
We assume that the search term “Sneaker” drove 1210 clicks and 156 conversions to your ASIN over the past week. Your ASIN ranked no.1 in the Amazon Search Term Report:
According to the previous formula
Your ASIN conversion rate is 22.36% /18.58% = 1.203 times the average conversion rate of search terms;
Your ASIN conversion rate is 156 /1210 = 12.89%;
Therefore, the average conversion rate of “Sneaker” is 12.89% /1.203 = 10.71%.
Then, based on the calculated average conversion rate, we can figure out the conversion rates of other ASINs in the report. Such as:
The conversion rate of #2= (11.81% /7.3%) x 10.71% = 17.326%.
By calculating the conversion rate of competitors, we can find the ASIN with the highest conversion rate, and then make a comparison to find out the reason, such as whether the price is more favorable, the rating is higher, the Listing quality is better, etc. Then we can utilize the advantages.
Here are the tips for finding your competitor's conversion rate. Have you got it?