Physical product conversion rates?

by James Harrison

Posted: 13 years ago 13 replies

INTERNET MARKETING

I got exclusive online sales rights on a physical product today... So I am looking for a rough idea of how much money I might be able to make and I would like to know what kind of a conversion rate I might be able to achieve if I do an extremely good job on the website that I am promoting the product on. Once I know the conversion rate I'll go from there, so that's all I need

Thanks ahead of time.

#conversion #physical #product #rates

JasonValens 13 years ago

Do you mean conversions from people who are searching for that specific product?
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James Harrison 13 years ago

I mean what percentage of people coming to my site might actually buy the product. I'm assuming it's like 2% but It seems like I've heard of much much higher rates.
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- jan roos 13 years ago
  
  There's no way to tell. It all depends on your sales process, sales copy, how targeted your traffic is and much more.
  
  Look at Amazon.com to see how it's really done. I get around 9% when I sent visitors there. They are the best in the business and I would try and learn from them If I were u.
  
  Cheers
  
  Jan
  
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James Harrison

13 years ago

Thanks Jan, that gives me a pretty good idea of what I might be able to achieve. It seems like I've heard of upwards of 30% conversion rates on physical products... could that be right?

Thanks
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jan roos

13 years ago

Originally Posted by James Harrison

Thanks Jan, that gives me a pretty good idea of what I might be able to achieve. It seems like I've heard of upwards of 30% conversion rates on physical products... could that be right?

I don't know about 30%, personally I've never seen or heard about anyone doing those numbers on a regular basis but I might be wrong.

The 9% I get from Amazon is pushing the limits already I think.

Cheers

Thanks

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Bill Farnham 13 years ago

Originally Posted by James Harrison

It seems like I've heard of upwards of 30% conversion rates on physical products... could that be right?

James,

A lot depends on your competition and if the niche is predominantly filled with commodity types of items. If it is, a good portion of your visitors will be price shopping your site just to see what your price is for a given item.

A 30% conversion rate on physical products would mean extremely pre-sold visitors. That would generally mean they got their informational needs taken care of elsewhere but didn't buy. In other words...don't plan on hitting the virtual lottery here.

Once I know the conversion rate I'll go from there, so that's all I need

It's better to be safe than sorry. Plan on unusaully dismal rates while you test your website elements out during the improvement phase. If get that "2%" conversion rate from the get-go, good for you, that means you're getting targeted traffic, and you've connected with your audience.

~Bill
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James Harrison 13 years ago

Ah I see, even a 9% rate would be pretty insane with the amount of volume I might be dealing with.
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Slade556 13 years ago

Impossible to tell because there are so many variables to the equation. Is the product desired? As in, is it searched for frequently? Will your website be laid out in such a way to maximize conversions? I always expect the worst conversion rates imaginable even for products that are HIGHLY searched! Once you have set up your website, check your conversion rates and then test by altering one aspect at a time (headline, buy buttons, etc) so you can isolate where your success or issues are.

It may sound boring or a waste of time but think of it this way, once you have tested aggressively and maximized your conversion rate, you can spend all your time on just sending traffic while knowing what results you can expect.
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James Harrison 13 years ago

I've calculated for less then half of the potential traffic and a 2% rate but there is still a ton of money to be had. @Bill, visitors wouldn't be price checking because I'll have the exclusive private online sales rights (one big retailer has commercial rights). But I plan on split testing and tweaking and testing and testing and testing... and then doing some more testing until I hit at least a 10% conversion rate.
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- Bill Farnham 13 years ago
  
  Originally Posted by James Harrison
  
  @Bill, visitors wouldn't be price checking because I'll have the exclusive private online sales rights (one big retailer has commercial rights).
  
  James,
  
  One of the falacies that folks try to convince themselves of is they have a product that is unique or exclusive or consumers' can't satisify their needs with a similar or like-kind product.
  
  My webstore I've had online since 1998 carries over 2500 products and I would love to buy into the premise that what I'm selling is 'special' and free from competition. But that fantasy has long since disappeared even though most of the items are specialty items that can't found in generalized retail stores.
  
  If one big retailer has commercial rights on the product you are selling a good majority of your marketing energies will be eaten up by folks who are comparing your price to that big retailer. So your shipping and handling costs will be a critical factor in your success.
  
  Something else to consider...if you have exclusive rights on internet sales setting up an affiliate program may be worth looking at provided your rights also allow for that. And your margins will also play a big factor in that decision.
  
  Personally, I hope you knock this one out of the park. I'm not trying to put clouds between you and the sunshine, I'm just trying to share experiences I've had.
  
  ~Bill
  
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  KenJ 13 years ago
  
  I have my own offline business and sell one of its products online. I am happy with my 1% conversion rates. (i.e. 1 sale per 100 visitors)
  
  What you have described seems almost too good to be true. How did you secure the deal to sell it online and are you sure you have exclusivity?
  
  Thanks
  
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James Harrison 13 years ago

@Bill, I am definitely aware that I will have LOADS of competition from similar products, but this product stomps on the competetion, trust me. It is going to be hard but I know I can do it.

@Kenj, The owner and inventor of the product is a very close friend.
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Paul Hancox 13 years ago
You'll make $10,000 a month, and achieve a 6.5% conversion rate.

Seriously, your question is currently impossible to answer, even roughly... because your sales and conversion rate will depend on at LEAST six factors:
1. How presold visitors are,
2. How familiar they are with the product creator (for factors like "trust"),
3. The quality of the product itself,
4. Whether there is a demand for this kind of product,
5. Word of mouth (people want to know what others think of a product),
6. The effectiveness of the sales page.
Since we have no idea of any of these six factors, ANY figures ANYBODY gives you would be complete guesswork.

Incidentally, Amazon achieve their 9-10% conversion rate because people are usually PRE-SOLD on an item, before they visit Amazon.

How often do people visit Amazon and just browse? It's more likely they go to Amazon with a specific item in mind. If they "only" get 10%, it's perhaps because people are comparison shopping.
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Physical product conversion rates?

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