
High Ticket Items - Amazon
Lets take a commission rate of 4%.On say a $30 iphone case, you get $1.20, and lets also assume that your conversion rate for this as it 'fits' into the spontaneous buy section, is around 8%
Now lets take a $400 item, such as a TV or watch etc, commission @ 4% = $16, and if your conversion rate is say 1%.
Lets throw 'targeted' traffic into the equation of 1000 unique visitors, this means if you are selling the high ticket items, you make $160 monthly, and if you are selling the iphone cases, you are making $96.00 (I KNOW AMAZON COMMISSIONS ARE TIERED, BUT I AM IGNORING THAT FOR THE MO)
So in this case the high ticket items win, however what if your conversion on the high ticket items is 0.3% that then means the lower ticket items win!
I know the best option is to have a range of items and related items where price does vary..... But lets just assume I am selling just one high priced item, would the conversion be relative? Or do people tend to shop around and 'think' more for high ticket items, leaving the Amazon 24 hour cookie useless?
Any advice appreciated.
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