This was a popular post that I made on the TPT forums a few months ago. I think it’s worthy of being the first blog post on TPT School.
What is a conversion rate? The conversion rate is the proportion of visits to a website who take action to go beyond a casual content view or website visit, as a result of subtle or direct requests from marketers, advertisers, and content creators.
In our case it’s the number of sales per product divided by the number of views that it generates * 100 gives you the percent. Every market has it’s own conversion rate average, but generally speaking I’ve always heard the retail conversion rate was about 3%. Amazon’s rate is actually higher than that because they are basically the best in the business at upselling/cross-selling you something that you need.
Let’s get back to TPT. I’m going to list some of my products, their views, sales, and then their conversion rates. I’ve only been here a month and have a small sample size which can definitely skew things.
Product 1 104 1 .96%
Product 2 149 8 5.33%
Product 3 167 4 2.3%
Product 4 46 2 4.3%
Product 5 441 33 7.5%
Product 6 234 3 1.2%
Product 7 110 4 3.6%
Product 8 184 11 5.9%
None of these products are bundles or holiday specific. They are regular lesson-based products.
Clearly, the front runners are products 2, 5, and 8. I’m very happy with those conversions and the action that I’m going to take with those products will be to promote them more on Twitter, blogs, Pinterest, FB, etc. People like what they are getting, the price seems right, and they are selling well. It’s a numbers game at this point with these products. The more views I get the more sales that come in.
It’s not necessarily the same with some of the lower selling products like products 1, 3, and 6. With those products I need to take a look at why they aren’t performing as well as some of the others. Remember, this is a numbers game. If I have 100 views I should EXPECT 3 sales (3% conversion). The fact that I’m not getting that is reason for concern.
These are the things that I’ll take a look at with these products.
1. Price – did I set the price right. Would lowering the price increase conversions? That’s an easy test to do. Take a snapshot, lower the price and then take a snapshot later on and compare
2. Cover – Does my cover page need a refresh?
3. Item description – Have I described the item well enough? Does my ad copy need any adjustments?
The other products are in decent shape right now and I’ll probably just continue to promote them as I have been.
You could over think this stuff until the cows come hope but the steps that I have listed above should really clean up a few messes that you may have lying around. One thing that you need to remember is to not be married to a product. If you’re dead set that your word wall package is worth $10 but your analysis tells you otherwise then it may be take to swallow your pride and lower the price.
That said, you may uncover a product that has a conversion of 15% or more. Maybe you didn’t list high enough. Would 10% at a higher price yield more money in your pocket?
Anyway, just some thoughts. I’d love to hear your comments, analysis, etc.
Follow my blog with Bloglovin