Selling on Amazon is getting more competitive with every passing day. Although it is natural to see a bump and slump in every business, you need to be more proactive in monitoring and diagnosing any decline in sales before it costs you a fortune.
Sales are a product of three overarching factors: Traffic, Conversion Rate, and Average Revenue per Order. Any change in sales can be traced back to these three factors. If you are wondering why sales has changed, review each factor, determine what has changed, and then evaluate the drivers of the change. In this blog, we will see how to troubleshoot an Amazon sales decline.
Traffic is measured by sessions and the number of visitors you get to your product pages. You can view the sessions for each of your listings under Business Reports in Seller Central. Fewer sessions mean fewer customers are browsing your products; greater sessions mean more customers are viewing your products.
Conversion rate is the percentage of shoppers that make a purchase after viewing your listing. It is measured by Unit Session Percentage (Units sold divided by sessions) and can also be found in your business reports.
Three Categories Of Factors That Influence Traffic And Conversion Rates:
- External: Out of your control: This includes a lot of factors like seasonality or lower category interest, macro-economic factors, new entrants, competitor listing improvements, their advertising and price changes.
- Organic: Controllable, intrinsic listing factors: This includes the things that impact your organic sales such as your listing title, bullets, description, product images, back end keywords, reviews and selling price. Shoppers stay on a product detail page only for approximately 30 seconds before they make a decision and move on to the next product. You should be able to impress them with the images and provide ample information about the product to build trust instantly. Also, studies have shown that having Enhanced Brand Content (EBC) or A+ content can boost your sales by up to 30%. Learn how to write good listing content that speaks to your shoppers and can help with your SEO as well.
- Influenced: Controllable, scalable factors: This includes your onsite and offsite advertising, bids/CPC, discounts, and other promotional activities which you can scale if you wish.
- Average Revenue Per Order
The average revenue gained per order is a combination of product price and average ordered quantity. If prices are stable, changes in the average revenue per order may relate to decreases in the average units per order or clients buying a lower proportion of your higher-priced products.
How To Troubleshoot Amazon Sales Declines with Advertising?
Poor advertising could also be the reason for lower sessions and conversion rate. To determine this, review period over period changes in clicks and conversion rate to changes in unit session percentage over the same period.
However, it is important to keep in mind that the factors that influence the traffic and conversion rate of your listings also influence the performance of sponsored ads. Since every metric is interdependent and one-factor influences others, it is tedious to do the root cause analysis. However, we have got you covered with some simple solutions to fix the decline in traffic and conversion rate which in turn will help fix the Amazon sales decline.
Regardless of which factor (organic, external, or influenced) is affecting sales declines, advertising can be used to increase traffic to your listing. One of the simplest solutions to increase traffic is to increase the budget, expand the targeting mix, increase bids, and increase top of search placement percentages. Increasing paid traffic can help give your listings the boost they need to kick start organic impressions.
Advertising conversion rates are typically lower than unit session percentage since organic sales are most often from branded search, direct links, repeat orders, etc. However, if advertising conversion rates are less than 50% of unit session percentage, it may be an indicator that the keyword and product targeting mix is not as relevant as it could be.
This could be due to not bidding branded keywords, bidding irrelevant keywords, and underbidding relevant keywords. You can easily fix this issue by optimizing the keywords and your campaigns with a proper strategy. You can make use of our free PPC tools to help with advertising campaign optimization.
Apart from this, adopting good SEO practices and a customer review management system will help in improving the conversion rate.
If you are still finding it difficult to understand where the problem lies, it is better to have professional help to diagnose and troubleshoot any sales decline before it gets out of your hand. Get in touch with our Amazon PPC experts and have a free consultation to discuss the problems and challenges in your Amazon journey.