It has been several months since we launched Splitly, the only automated split testing tool for Amazon private label sellers. Since then, hundreds of private label sellers have tested their listings with us, and we have witnessed some truly powerful split tests.
We have seen everything from price changes of a few cents making a big impact in sales to changing of a lead picture that tripled sales!
If you’re looking for evidence of how split testing can impact your business on Amazon for the better, or looking for ideas for your next big split test idea, we’ve got some exciting data coming up for you.
Profitable Split Tests for Amazon Private Label Sellers
In this post, we will review some of the most impactful tests and take a deep dive into what the key takeaways are, and how you can apply it to your own business as an Amazon Private Label Seller.
As a taster of whats in store in the post, we saw one user’s daily conversion average increasing by over 71%, with average daily sales increasing by 77%, from 23 to 40 units per day.
Another user increased his average daily profit from $74.14 to $107.73, which is over $33 profit increase per day. This would equal around $1,000 a month, and over $12,000 a year extra profit.
Sounds good right? Keep reading to find out more about these real life examples and how you could replicate similar tests in the future.
1. Decrease in Price From $31.92 to $28.92
This user decreased his price from $31.92 to $28.92, and then tested this new price against his old price. The result was a 58% increase in the overall conversion rate.
However, what was truly impressive was this user’s daily conversion average went up over 71%. Similarly, his average daily sales increased by 77%, from 23 units a day to 40 units a day.
These changes were able to net this user over $88 in extra profit per day. That’s over $2,600 per month, and over $30k per year.
Finding the optimal sales price for your private label product is critical to your success. In this instance, the seller dropped their price from $31.92 to $28.92, but reaped benefits in a huge increase in profit.
Whilst dropping the price reduces the average profit per sale, the increase in sales per day offset any loss in profit per sale. This allowed this particular user to net an extra $88 in profit per day.
- You should test reducing your price to see if it can drive more sales. If it can drive more sales, make sure that this increase in sales makes up for any loss in profit caused by reducing your sales price.
- If it does not make up for the decrease in profit per sale, a higher price is likely optimal, unless you are trying to boost rank.
- Take it steady and try decrease of a few dollars at first, and see how much that increases your sales.
- Then check to see if that increase in sales offsets the reduction in profit per sale.
2. Changing The Packaging Vs Product In The Lead Image
This user decided to test a lead image with the packaging and the product photographed far apart vs closer together. This sounds really simple but check out the results!
Originally, the user had a photograph of the product and packaging slightly far apart. The split test was conducted with an image of the product and packaging side by side.
This user’s average daily sessions went from 91 to 107, an increase of 18%. Daily conversions went from 12 to 16, a 38% increase. Average daily sales went from 12 to 18, an increase of 44%.
Most impressive however, was that average daily profit went from $74.14 to $107.73, a 45% increase.
This was an increase of over $33 a day in profit, which would equal around $1,000 a month, and around $12,000 a year in increased profit!
It’s worth noting that this user did not have to increase his price at all to get this jump in profit. All of this was from the lead picture split test. This user will also continue to benefit from this increase in profit for several months, and potentially the lifetime of this product.
Good main product images are vital to your Amazon private label success. Indeed, poor product images may be the only thing holding your sales back. If your product isn’t selling, then one of the first places you should look is your images.
Think about it. Your main product image is your potential customers’ first impression of your product. When a customer is searching for a particular product in Amazon, the first thing they see are the main product images of you and your competition.
If first impressions are everything, then your main product image is going to make or break your sales. If your main product images are of less quality than that of your competition, your competition will get the majority of traffic. Simple as that!
If you have a good main product image, potential customers will be more inclined to click on your listing. Therefore, you need to be constantly testing your main product image to find the most optimal one.
- If you are not already using professional pictures, try to hire professional photographers to take your product pictures.
- Also try doing different things with your pictures like adding your packaging in the image and then testing it. Moreover, consider continually switching the positioning of your product in relation to your packaging as this user did.
- Changing where your packaging is located in your main product image can have an impact on your sales, so make sure to test several different angles and positions.
3. Zoomed in Lead Picture vs. Zoomed Out Lead Picture
This user’s original lead picture was a product picture, which showed only the product label. She then switched her original lead picture to a zoomed out picture of her product, which also showed the cap of the product slightly behind it. She then tested it against the original.
Due to this change, her average daily sales increased by 66%. Daily conversions average increased by 66% and general conversion rate increased by 58%. This further illustrates the power of pictures in increasing conversions.
Again, good main product images are vital to your Amazon private label success. We can’t stress this enough how important these are to your sales. However, because images are so subjective, it is hard to tell which images are “better” in the sense that they will drive more sales.
Running controlled split tests allows you to combat the subjective nature of this by judging it based on the objective data and increase in profits.
- Continually test your product images to find the most optimal one. Don’t just assume a picture is better than your other pictures because it looks “better” to you. Let the market actually tell you which is better.
- Try using professional pictures that vary the zoom of your product image, and then test these against each other like this user did. You may find that different image angles and zooms increase sales.
4. Decreasing Sales Price From $23.99 to $19.99
This user decreased their sales price from $23.99 to $19.99, and then tested it against the original price. Conversion rate went from 3.45% to 6.96%, and her average daily sales increased by 82%.
Decreasing your price can increase your average daily sales. In the above example, this user was able to increase average daily sales by 82%. This is especially important if you are trying to increase your sales rank.
Again, whether you’re trying to increase profit directly or increase your sales rank, you should continually test your price to find out what is optimal for your business goals for each product.
- Again, try decreasing your sales price to see if it will drive more sales. However, make sure that any increase in average daily sales offsets any loss in profit caused by reducing your sales prices.
- Knowing which decreased sales price can drive more sales is great when you are trying to run a promotion to increase your BSR.
5. Decrease in listing price From $11.97 to $9.97
This user tested his listing price instead of his sales price. The listing price is usually the first price a user sees. If there is a sale price, then the listing price will have a slash through it and Amazon will display the sales price as the “price”.
By changing his listing price, this user was able to increase their daily conversion average by 70%. This increased daily sales from 6 units a day to 11 units a day, an increase of 64%.
Studies have shown that sellers can sell their product for a higher price if they start negotiations with an initial high offer. Amazon allows you to do this with the “listing” price.
Although this study shows that decreasing your listing price can actually increase your sales, we also recommend testing a higher listing price.
You should also set your listing price as a precise value. For example, instead of making your listing price $39.99, you should make your price $38.78.
Why? Because studies have shown that when a person is given a precise value, they estimate that product to be worth that value. In the above example, your potential customer is more likely to believe that your product is worth $38.78, compared to $38.99. Additionally, if your potential customer believes your product is actually worth $38.78, they will think they are getting a great discount when you set your sales price to $29.99.
- Run split tests on your listing prices as well as sales prices.
- Testing a higher listing price may let you anchor a higher perceived value into your customers’ subconscious minds making them think your product is more valuable.
- Set precise values for your listing prices, save “marketing” prices like $29.99 for sales prices
Split testing does require some time and analysis, it’s true. But as we have seen the successes of private label sellers using Splitly grow, it has become obvious that if done correctly, it can be worth the time it takes and then some.
Running split tests on your Amazon products is a data-driven, scalable way to increase your conversions, daily sales, profit or even help you to improve your BSR.
It has been a joy to see our Splitly users running successful split tests over the past months. Let us know in the comments if you have any success stories to share, or ideas for a split test that you are going to run after reading this post!
Be sure to check out the second part of this post, exploring even more split test examples, including changing the angle of the lead image and increasing your listing price. There’s also a free cheatsheet download of all 10 split tests from both posts, so you can reference the learnings easily and inform your own experiments.