Is there a simple equation for Ecommerce sales?

On an open platform like Amazon, you need to work hard to optimize this simple equation and take control of growing your sales. You are the merchant…

Traffic * Conversion * Average Selling Price (ASP) = Sales

Let’s examine the components briefly:


You will not generate any sales on Amazon (or any marketplace or your own direct-to-consumer website) if nobody is even looking at your product page! There are obviously a host of opportunities to optimize your listing including the name and keywords that will help surface it in results. But it is possible that even with well-crafted listings you will still not receive sufficient traffic to reach your goals. So, you must consider additional means to drive traffic, including pay-per-click (PPC) and other advertising opportunities, social media efforts, and even email marketing to your existing customer base. You can easily overpay for paid traffic and become reliant OR be smart and balance our organic vs paid traffic by using data and analytics.


Once you consider everyone getting to your product page, are you doing everything you can to convert that opportunity into sales? This includes how you manage resellers, optimizing content, managing customer reviews, and making sure your inventory is meeting the demand you are generating.

ASP (Average Selling Price)

What price optimizes profitable sales? How do promotions play into the price? Do you actively monitor prices to remain competitive and win the buy box? How can you use variations and bundles to improve your average sales price? Are you utilizing programs like subscribe and save effectively? With slow-selling items, you may be constrained by the amount of data you have to intelligently manage pricing. However, for brands with high-volume sellers, machine learning (such as with the i2o Platform) can help surface insights that allow for precise actions to make sure you achieve the optimal sales price.


Ka-Ching! Now you got your sales and it’s time to analyze sales by category/sub category/type of products/new vs old products etc. and delve into profitability analysis. Do you have the tools to dive deep and find insights to take control of your sales equation?