This guest blog is written by Mina Elias, CEO and founder at Trivium, a Riverbend Consulting partner.
If you are an Amazon seller looking to boost your sales, then you need to understand how the Amazon algorithm works and what factors influence it. The algorithm determines where products are ranked in the Amazon search results.
Understanding how the Amazon algorithm works is essential for sellers seeking to increase their visibility and sales.
A better understanding will help you improve search rankings and reach more customers.
What is this proprietary, complex system?
Amazon’s algorithm is a proprietary, complex system that decides how products are ranked in search results. It considers various factors, including product relevance, sales history, pricing, reviews and more. These determine which products are shown in response to their search queries.
It prioritizes products that are most likely to result in a sale as well as products that are relevant to a shopper’s search query. The algorithm is constantly evolving and being updated as Amazon seeks to improve the shopping experience for customers and increase sales for sellers.
Factors influence the amazon Algorithm
In order to increase product visibility and boost sales, you need to know the factors that influence the Amazon algorithm and understand how they influence product ranking and placement in the search results.
1. Seller authority
Amazon is all about providing customers with a positive experience and buying with confidence. For this reason, seller authority weighs heavily in the Amazon algorithm.
Seller authority refers to the level of trust and credibility that an individual or brand selling on Amazon has established over time. This authority is influenced by how long a seller has been selling on Amazon, performance metrics, product quality and customer feedback and more.
Amazon’s algorithm takes seller authority into account when determining how products are displayed to potential customers. Sellers with higher authority are more likely to have their products shown at the top of search results and other product listings, which leads to increased visibility and sales. In this sense, seller authority can be a key factor in determining the success of a seller on Amazon.
As a result, many sellers focus on building their authority through various strategies such as providing excellent customer service, maintaining inventory levels and handling returns in a timely manner.
2. Sales history
Sales history is one of the most important factors according to the algorithm. This is because past sales are a good indication of future sales. Products with a strong sales history are given preferential treatment and, therefore, are more likely to be featured prominently in the search results. This means that sellers who have a good sales history will have more opportunities to reach more customers and increase their profits.
There are a few things you can do to improve your product’s sales history. First, offer discounts and promotions, which encourage customers to buy your product. This improves your sales history. You can also create a strong marketing campaign that generates product interest.
Impression numbers are a major factor, as they influence the ranking of a product in a customer’s search-term results. A high number of impressions is seen as a sign of popularity by Amazon and, as a result, will be given higher placements in the search results. On the other hand, products with low impression numbers will be buried in the search results.
The number of impressions a product receives comes down to relevancy. Providing relevant information in your product listing and product detail page helps match your product to your target audience. Ultimately, Amazon rewards products with high impression numbers, as it is seen as a sign of quality and popularity.
4. Click-through-rate (CTR)
CTR is a metric that measures the percentage of users who click on a product listing. In the context of Amazon, CTR plays a significant role in influencing the platform’s algorithm. The algorithm takes into account the CTR of a product listing when determining its relevance and ranking with search results.
The higher the CTR of a product, the more likely it is to appear at the top of the search results, leading to increased visibility and sales. In other words, Amazon’s algorithm favors products that are clicked on more often, as it perceives them to have higher customer engagement and relevance.
This is just one reason why it is essential for sellers to regularly optimize their product listings–and advertising strategies–to maximize their CTR and improve their chances of ranking higher on the platform.
5. Conversion rate (CVR)
CVR is the percentage of customers that complete a purchase after visiting an Amazon product detail page. A high CVR indicates the product is not only relevant to the customer’s search query, but also compelling enough to convert the shopper into a buyer.
CVR is a crucial factor. A high CVR is a positive sign that gives the product listing a higher ranking, and increased visibility and sales. With fierce competition on Amazon, this is why quality images, persuasive product descriptions, competitive pricing and good customer feedback are so important. They maximize conversion rates and increase chances of ranking higher on the platform.
6. Organic sales
Organic sales is key for product ranking. These are the sales generated from a product listing without any paid advertising or promotion. The algorithm is looking at the volume of organic sales for a product to determine its relevance and ranking. A high volume of organic sales indicates the product is high quality and customers are naturally interested in the product.
This is why it is essential for Amazon sellers to focus on improving their product quality, customer experience and marketing strategies to increase their organic sales and improve their chances of ranking higher in the search results.
7. Pay-per-click (PPC) sales
While organic sales play a more significant role in determining a product’s ranking, PPC sales also can have a substantial impact on Amazon’s algorithm.
When a product is purchased through a PPC ad, Amazon promotes the product more prominently. This leads to further PPC sales as the product gains more visibility, which in turn can help boost organic ranking in the search-engine results page.
Given that PPC is an effective way for sellers to boost their sales and visibility—and influence organic rank–sellers should regularly optimize their PPC advertising. This increases their volume of PPC sales and their chances of ranking higher on the platform.
8. Driving traffic on and off Amazon (internal sales and off-site sales)
Driving traffic both on and off the Amazon platform can have an impact on how it ranks a product in the search results. High volume of traffic either on Amazon or through other websites that link to Amazon, is a good indicator that the product is desirable and should be given higher visibility in search results.
Focusing on optimizing marketing strategies on and off Amazon can increase traffic volume to a product listing and improve chances of ranking higher on the platform.
Amazon is all about customer satisfaction and therefore product reviews are one of the decisive ranking factors. The algorithm takes into account the number rating and quality of reviews when determining a product’s relevance and ranking.
A high volume of positive reviews feeds into the trustworthiness of products and brands, resulting in higher CVR and sales velocity. The algorithm considers the quality of the reviews and the relevancy of the feedback when boosting a product’s ranking.
Reviews impact visibility and ranking in Amazon’s Best Sellers and Feature Product Lists so focusing on improving product quality and customer experience is vital to increasing the number of positive reviews and higher search result placements.
How to use these factors to boost sales
By knowing these factors influence the Amazon algorithm, you now can adjust your strategies to make your products more visible in the search results. Here are some tips on how you can use them to boost your sales.
- Optimize your product listings. Make sure product listings are optimized with the most relevant and targeted keywords. Include eye-catching, high-quality product images.
- Encourage customer engagement. Encourage customers to write reviews (but always be sure to follow Amazon policy when asking for them), ask questions and interact with your product. This helps boost your product’s placement in search results.
- Stay competitive with your pricing. Make sure your prices are competitive compared to other products in the same category.
- Use Amazon ads. Spend money and invest in Amazon Ads. This helps you reach new customers and increase product visibility.
- Monitor your competitors. It’s important to stay one step ahead of your competitors. Make sure you monitor competitor pricing, product listings and customer engagements.
- Create limited-time offers. Customers love discounts and limited-time offers. Take advantage of these to help boost sales.
Applying the right strategies to influence Amazon’s algorithm will increase sales, profitability and, ultimately, rank a product higher on search term pages. It will accomplish your goal to build customer credibility and understand how the algorithm evaluates product ranking.
Knowing how to get started and what to do may require some extra support. We recommend having an experienced team take a deep dive into your Seller Central account. Of course, we can help improve your brand performance. We even offer a free PPC audit. If you need to know more, please let us know.