Amazon Algorithm and Everything You Need To Know About It
Amazon’s A9 Algorithm is a bit of a mystery to the majority of the sellers on Amazon. Most sellers are too confused by it and others don’t even know it exists. However, if you take the time to understand the Amazon algorithm; it can be your biggest asset. Much like Google, Amazon works on one simple principle – relevance. The entire Amazon algorithm is built on this principle of relevance.
The primary difference between Google and Amazon is their definition of ‘relevance’. For Google, relevance refers to a webpage, website, or article that most accurately answers the searcher’s query. Whereas for Amazon, relevance refers to the product that will most likely result in a conversion based on the searcher’s query. And its important for a seller to know this difference because Amazon has 3 times more searches for products (shopping) than Google does!
At its very core, Amazon’s ranking system is a lot less complicated than Google’s. It takes places in 2 broadly divided steps:
- Displaying all the products from a ‘catalog’ of active listings on Amazon based on the search query
- Re-ordering the results based on relevance to maximize conversions.
And the goal for a seller is to try to be the best and most relevant option in your product category. For that, we need to understand what Amazon focuses on when determining the relevance of a product.
What Amazon focuses on
Amazon has spent years perfecting their website and algorithm in order to maximize the RPC (Revenue Per Customer) by ranking the products that are most likely to result in a conversion. They’ve done this by constantly monitoring every user’s buying behavior and activity on the website and using the data to creating a better purchase experience. Amazon’s core focal points for their algorithm are as follows:
- Maximize conversions – The product should be the best option for that particular customer, in order to maximize the chance of a conversion.
- Maximum Relevancy – The product should exactly what the customer is searching for.
- Maximize Customer Satisfaction to guarantee retention – The shopping and purchasing experience should be as easy and comfortable as possible in order to maximize satisfaction and guarantee customer retention.
What you should focus on
Based on Amazon’s algorithm and the factors based on which products are ranked, these are the most important factors to focus on to rank on the first page (in no particular order):
- Reviews – This factor is quite self-explanatory. The better the reviews of your product, the better the ranking of your product. The volume of the reviews also plays an important role in the ranking.
- Answered Questions – The answered questions on your product page also has a positive impact on the ranking.
- Image Size and Quality – Products with clearer, brighter and crisper images fair well in Amazon’s algorithmic ranking.
- Price – Comparative prices in the category. Assuming all other things are equal, a product with a lower price will be given preference. Since the chance of a conversion is higher.
- Parent-Child Products (Variations) – Products that have color and size variations tend to have better visibility.
- Time On Page and Bounce Rate – This refers to the amount of time a user spends on your product page. While this isn’t necessarily in your control, you can assure a lower bounce rate by maintaining the rest of the factors.
- Product Listing Quality and Completeness – Incomplete or low-quality listing do not get preference. These are the parts of the listing that you must focus on –
- Product Features
- Product Specifications
- Brand and Manufacturer
- Category and Sub-category
- Buy Box – Having a buy box/buy button on your product SIGNIFICANTLY improves your chances of getting preference.
- Order Processing Speed
- Perfect Order Percentage (POP) – The percentage of your orders that are executed well. The higher the POP, higher your preference in the Amazon algorithm.
- Order Defect Rate (ODR) – Opposite of POP.
- Exit Rate – The percentage of people who exit Amazon’s website after viewing your product.
- Delivery Options/FBA – If you have prohibitive shipping charges, or take too long to deliver, then you get less preference in the ranking.
In the simplest words possible it comes down to one simple fact – The more sales you have, the more your sales increase. It’s just a matter of reaching a critical mass after which Amazon’s algorithm takes care of the rest. Your focus should be on trying to improve all the above-mentioned points to the degree possible. You can also work with an e-commerce service provider like Sellryt. We specialize in listing and cataloging, account management, digital marketing, and many more e-commerce services and we can help you boost your e-commerce sales. You can also learn more about the A9 Algorithm here.
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