Why You Can't Make Sales on Amazon - 2 Underlying Causes

If you've been struggling to increase sales for your brand or your client's accounts, hear me out.

I want you to understand this concept well so you can level up your PPC game.

It's a surface-level problem, but you always need to start at the basics to identify what's causing the issue, right?

Sales boil down to 2 factors, that is:

1. Traffic 2. CVR

How do you make more sales?

You tweak both of these factors and analyze them closely.

You either drive more traffic or focus on ramping up your CVR.

It's that simple.

There are essentially 2 levers that you need to pull in to reduce your ACOS, whilst improving ad efficiency for that matter.

That is:

1. CVR (Conversion Rate)

2. CPC (Cost Per Click)

I would always focus on the CVR part of the equation. You might be asking - "why?".

Let's examine it a bit more closely:

How much can you decrease your bids without sacrificing traffic to your listing?

Not by a lot.

Maybe by a few cents at best.

While maintaining the same amount of traffic or eyeballs and not losing sales.

Now, how likely it is for you to improve your CVR?

By taking that old, shi**y, unoptimized listing that has not been updated for over a year or so and turning it into a new mold.

If you really get your listing nailed down to every single detail, don't you think you can creep up your CVR?

Of course, you can. And you can boost your CVR by a few significant % points.

Which will have a positive impact on both - your advertising and organic sales.

And do not tell me that you can't.

There is always room for improvement. You just need to be data-obsessed and specific to find little triggers that are harming your CVR.

Especially now that we have the "Manage Your Experiments" tool within Amazon. It's easier than ever before to get really granular with the data.

So go ahead and perform a few A/B tests on literally everything. Make sure to use it to gain a competitive edge.

How do you check your CVR by child ASIN?

Go to your "Business Reports" and on the left side click on "Detail Page Sales and Traffic By Child Item".

Select a period and you'll see the CVR, and sessions for each child ASIN.

Here you need to figure out what it is that you need to work on.

Is my CVR terrible that I am not converting customers?

Then, in that case, driving more traffic will not help you bring more sales EFFICIENTLY.

Are my sessions low?

Well, that might mean you need to drive more traffic. Whether it is through external sources or PPC directly.

All in all, your ad efficiency comes down to 2 factors - CVR and CPC; your sales are comprised of 2 factors - traffic and CVR.

They are highly intertwined since you can't drive traffic without incurring a certain CPC. Right?

Identify what it is that you need to work on. Start with the surface-level problem and get deeper.
MB DigitFriution, GiruliĊ³ g. 10, LT-12112 Vilnius.
Copyright @ DigitFruition 2023. All rights are strictly reserved.