Seller A has a conversion rate of 20%, while China Phone Number Seller B has a conversion rate of only 5%. Now 5% is of course not bad, but in the long run seller B will not make it with his product. A calculation example: Suppose the average cost per click (CPC) is 50 cents and both sellers are just starting their advertising campaign. To China Phone Number realize 100 sales from advertising, seller B needs 2000 clicks (100/5%). This costs a total of 1000 euros (2000*0.5). Seller A only needs 500 (100/20%) clicks to get 100 China Phone Number sales, which equates to 250 euros (500*0.5). A difference of no less than 750 euros.
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It doesn’t stop there. Amazon’s algorithm China Phone Number will of course want to show the product of seller A to consumers earlier than the product of seller B. Seller A will therefore be ‘rewarded’ with a lower click price. To maintain the same China Phone Number visibility as seller A, seller B will eventually have to offer a much higher cost per click to generate the same 100 sales. Therefore, only advertise on products with good conversion rates. What is good? For products up to 50 euros, my experience is that they should be well China Phone Number above 10%. Where can you find the conversion rates?
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To do this, go to Reports > Business China Phone Number Reports > Detailpage Sales and Traffic . Here you look at the Unit Session Percentage column . 3. Determine your profit margin per product before you start advertising Know your numbers China Phone Number is in my opinion one of the important success factors in every business. Likewise on Amazon. When you know the profit margin per product, you also know what you can spend on advertising to break even . Suppose you sell a product on Amazon for 20 euros and that the China Phone Number profit after all costs (purchase price, shipping costs, Amazon fees , et cetera) is 5 euros. In this case, your profit margin is 25% (5/20).