Viewing Amazon Repeat Purchase Rate - and How to Increase It
Repeat orders on Amazon are a great way for vendors and sellers to grow their businesses. But they are not always easy to track and grow. On Amazon, customers have a tendency to spearfish, or simply choose either the first item to pop up or the cheapest item, so it can be hard to cultivate brand loyalty.
It is possible, though. To do it, you will need to track Amazon repeat orders. This quick guide will help you understand this data and how to use it. For a more detailed discussion of this topic and expert advice on how to boost repeat purchases, download our whitepaper below.
What Are Repeat Purchases for Amazon Sellers and Vendors?
Repeat Amazon purchases data tells an Amazon vendor or seller which products are being purchased multiple times by the same buyer, and how often they are re-buying the product in a given time period. Specifically, Amazon shows you how many orders were placed for a product over time, and how many individual customers placed those orders, so you can see how many of those purchases were a repeat order on Amazon — i.e., the number of orders is greater than the number of customers placing them.
Repeat Amazon purchases are particularly common for e-commerce businesses that sell consumables. For example, a customer would have to repeatedly purchase a new tube of toothpaste every time they ran out. It would be less common to see this type of buying behavior with a one-off purchase, like a television set.
Acquiring new customers is vital, but their true value to your business is only realized when they become repeat buyers. Consider this: a new customer who purchases your product regularly is significantly more valuable to your business. Indeed, customer loyalty is a cornerstone of thriving as an Amazon seller.
A robust repeat purchase rate indicates you're delivering considerable value to your customers. Furthermore, research indicates that a mere five percent boost in customer retention can spike a company's profitability by an impressive average of 75%!
Limitations of Amazon Repeat Orders Data
The problem with this data, if you are using it for purchase frequency insights on Amazon, is that it's limited by the fact that you can't track behavior for individual buyers, or the segments they belong to. This makes it difficult to identify specific repeat buyers and market to them — or even thank them.
How to See Repeat Purchase Rate on Amazon
First, you’ll need to download the report.
In Vendor Central, use the following path: Reports > Analytics > Consumer Behavior Dashboards > Repeat Purchase Behavior.
In Seller Central, use the following path: Brands > Brand Analytics > Repeat Purchase Behavior.
The report will have a number of data columns. They will differ depending on whether you’re a seller or vendor. Here are some additional details to interpret this report a little bit more clearly:
The repeat purchase rate is calculated by dividing the number of repeat customers by the total number of customers.
The repeat purchase rate is typically expressed as a percentage.
The average repeat purchase rate for Amazon sellers is around 25%.
For detailed instructions, please download our free whitepaper below.
How to Increase Repeat Purchase Rate on Amazon
So now that you have the data, how do you use it to boost repeat purchases? We have more detail in our whitepaper on repeat purchases, which is available for free download, but here is a summary of some of the things you can do.
Make decisions about which products to develop and market. Products with above-average repeat purchase rates could benefit from promotional campaigns.
Adjust your pricing strategy. You may need to win the Buy Box on a regular basis through competitive pricing to gain repeats.
Increase efficiency. You can make marketing and stocking decisions to boost efficiency based on what repeat purchases data is telling you.
Learn about your products. Amazon repeat orders data will tell you what relationship your customers have with your products, which can give you clues on what products to develop and stock.
Manage multiple sales channels. If you sell more places than Amazon, repeat purchases data can help you see if customers are buying at the same frequency as at other retailers, which can help you prioritize sales channels.
READ MORE:
Understanding Amazon Repeat Purchase Data
We have a much more detailed discussion on how to access and understand repeat purchases data in Amazon, as well as advice on how to boost repeat purchases through a number of methods, such as the “subscribe and save” feature. You can download our repeat purchases whitepaper for free below.
