Success in Amazon advertising can look different to every seller. That’s why understanding benchmarks is so important. How many clicks, impressions, or conversions are enough? How are you stacking up against the competition? Where are you lagging, and what do you need to do to get ahead?

However, the more you know about setting targets, the more likely you are to find solutions that work for your business. These are the Amazon advertising benchmarks to keep in mind when building your Amazon ad campaigns and sales strategies.

Amazon Seller Benchmarks by Category

As with many aspects of eCommerce, what you’re selling will dictate a large portion of the results you can expect—and this includes setting benchmarks you should be trying to meet or exceed. Below are some of the most common benchmarks by Amazon category, including brands and brand revenue and how that relates to price changes, cost-per-click, and average star rating.

In general, higher-end categories, like gourmet food, see a high CPC, as do areas like household goods and personal care, where the market is more crowded; this is also true of price changes.

What is the average Amazon click-through rate (CTR)?

The average CTR on Amazon is around 0.35%, so if you’re substantially below this number, there’s something about your ads that isn’t resonating with customers.

Click-through rate refers to the number of total clicks on ads divided by the number of impressions (the number of people who had eyes) on your ads. So, if 1,000 people saw your ads and 10 people clicked, that’s a CTR of 1%.

Want to get the in-depth details? Download your industry report and get the low-down on how Amazon click-through rates track across the market.

What is the average Amazon conversion rate?

On Amazon, the average conversion rate is just under 10%. However, categories can play a huge role in this number. More saturated spaces will see lower conversion rates; the same is true for items priced over $100.

Conversion rate, or the number of clicks that translate into purchases, is an important metric for most sellers. Calculated by dividing sales by total clicks, this metric can show you how many people who expressed interest in your product from an ad and actually made a purchase.

All of this aside, if your conversion rates are significantly lower, there’s something about your ads that compels customers to click, but your product listings might not be doing enough to communicate value to them.

What is the average Amazon advertising cost of sales (ACoS)?

The average ACoS for Amazon sellers is around 30%, so staying at or below this average threshold will help you remain competitive without hurting profits. You want to keep an ACoS less than your margins to stay profitable.

Calculated by dividing total ad spend by total sales, it’s possible to analyze how much it’s costing you to drive a sale. If your total ad spend is $100 and you sell 200 items, your ACoS is 50%. 

An Amazon ACoS that’s too high implies your ads aren’t as efficient as they could be, and a strategy change may be warranted.

Another Amazon performance metric to consider in relation to ACoS is Amazon TACoS or total advertising cost of sale. TACoS focuses on the relationship between total ad spend and total sales revenue.

What are the average Amazon daily impressions?

Impressions, or the number of people who see your ads, can provide insight into how well your ads are working to get eyeballs on your products. This can fluctuate significantly based on season or trends—for example, Prime Day is a popular event that sees many impressions skyrocket along with the surge of customers.

What are the average Amazon daily clicks?

Across Amazon, the number of daily clicks on PPC ads averages around 300,000. Of course, the more impressions, the more opportunity to share in clicks across your products. If your clicks aren’t matching up with your goals, visibility on your ads may be holding you back.

What is the average Amazon seller’s daily spend?

The average Amazon seller’s daily ad spend is around $260. For those new to the space, setting a lower target, like $30 to $40 a day, can be a good way to test strategies without over-investing.

Ad spend can make a huge difference in attracting customers to your product pages, but if the cost to advertise on Amazon is too high per click, per conversion, or even per day, you may be harming your bottom line more than you realize.

What are the average Amazon seller’s daily sales?

Sales will vary based on the specific products sold, the array of products a seller has available, and the goals of the business. Sellers with a few low-cost products listed for sale are unlikely to see significant numbers despite site-wide averages.

What is the Amazon average order value?

While AOV will also vary greatly from one seller to another based on size and scale, the average AOV across all sellers each day is around $55. While this won’t be achievable for small-scale retailers, this can help larger brands set initial benchmarks.

Amazon order value, or AOV, can be determined by dividing the total amount of a day’s sales by the number of transactions. For example, if you sold to ten customers for a total value of $800, your average order value would be $80.

What is the average Amazon discount?

Amazon sellers have the opportunity to set up product discounts, including Lightning Deals, coupons, and product savings for repeat buyers or subscribers. However, using these kinds of resources isn’t going to be right for all sellers at all times. Doing so will require a strategic focus based on everything from eCommerce goals to inventory levels to competitive advantage.

For those sellers who are interested in driving sales based on offering savings, Amazon suggests at least 15%, with many sellers settling somewhere between 15% and 30%.

Exceed Your Goals with Trellis

The insights in this blog came from Trellis’s extensive Benchmark reports. Curious about your specific category? Build your industry report through our Chrome extension and see whether your business is hitting the mark!

Understanding the benchmarks to keep in mind when advertising on Amazon may not help you achieve each and every personal goal, but they can help you determine whether your targets are realistic, how you’re stacking up to the competition, and where there’s room for improvement. While your objectives will always be your own, creating a strategy based on common site-wide metrics can be a solid place to start. To enhance your efforts, Trellis can help. Reach out today to learn how.