Regarding the term “traffic thinking”, when you start doing Amazon, you must have traffic thinking, because it plays a vital role in the success of our Amazon business. Many people may not understand its importance. Below, let the readers see a sales formula of the Amazon platform.
(Platform) Sales = Traffic (Natural Traffic + Paid Traffic) x Conversion Rate x Average Customer Price
From this formula, we can see that obtaining traffic is the most important and basic work in the operation of the Amazon platform. If there is no source of traffic, the subsequent average customer price and sales volume are out of the question. Strictly speaking, the so-called conversion rate indicator actually still belongs to the category of traffic, because the conversion rate is an important indicator to measure the utilization rate of traffic, that is to say, the higher the conversion rate means the greater the utilization efficiency of traffic. Therefore, the inner core of Amazon’s “traffic thinking” is to continuously reduce the cost of obtaining traffic on the one hand, and continuously improve the utilization rate of traffic on the other hand.