Key Ranking Factors on Amazon

May 30, 2022 Posted by FAITH EVANS
Key Ranking Factors on Amazon

The Fundamentals

The way to master the Amazon search algorithm is to think of it as a game. The name of that game is keywords, which is to say you have to learn how to rank with keywords. As the algorithm is patented and constantly evolving, one must seek to up their game when it comes to keywords. Becoming a master at the keyword game leads to beaucoup bucks.

Two Sales Paths: Organic and Paid

  • Organic: when people come across your product on their own through searching via the search bar
    Target: 80% of your sales conversions
  • Paid/sponsored ads (PPC): when people use a sponsored ad for your product via search results on related product pages, banner ads, etc.
    Target: 20% of your sales conversions
    • Upon initial launch, expect up to 100% of sales conversions to occur via paid sales
    • Ranking takes patience
  • Search-Find-Buy: when your strategy relies upon customers searching for your product and then buying ( still counts as an organic)
    • Amazon provides no details for organic sales
    • Amazon does provide stats for paid ads

Business Reports in Seller Central

  • Metrics for page views, sessions, sales, unit session percentage, etc.
  • Crafting ad reports or search term reports can show you how times your product appeared for various keywords and the number of sales through ads
  • Unit Session conversion percentage: Amazon conversion rate overall (organic and PPC)
    • Not to be less than 7%
    • Low metrics for your listing require more effective ads, pricing or content
    • Shoot for 15-20% and above

How well are you selling on Amazon?

Best Seller Rank (BSR): metric of frequency of your item being purchased

  • Measured against category competitors
  • Does not indicate profit
  • No need to track competitors’ BSR
  • Focus targeted keywords and sales generation on where you are ranked
Outside/external conversion rate:
  • Traffic for ads on Facebook, email marketing, affiliate links, Pinterest, Instagram, etc.
  • Regardless of sales, a click can boost ranking due to the fact that you are bringing people (potential customers) to the Amazon ecosystems

Amazon rates recent sales above all else

  • Increasing recent sales brings the good favor to the algorithm and eases your way to ranking on page one
  • A honeymoon period is granted to new product launches affording them the opportunity to improve their rank
  • The honeymoon period seems to exist for 30-45 days or the first 3000 impressions or so, though this is not certain
  • Launch as soon as your product is in stock by preparing your listing and promotions well before the launch in order to get the most of the honeymoon period

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Click Through Rate (CTR)

  • Tells you the number of customers who click and then go on to purchase- especially vital with PPC
  • If your CTR is too low, Amazon will stop showing your ads due to the fact a low CTR reveals a lack of interest in your listing and product
  • Shows how your specific keywords are converting from clicks

Factors that Affect Rankings

  • Add to Cart
    • Items added to carts boost your rank because serious customer interest and buying intent
  • Page views by search terms
    • Sales increase when page views increase
  • Outside traffic and PPC
  • Review
    • Though being more for future customers than ranking, a good review does affect sales
    • Encourage longer reviews as too many short reviews appear dodgy and are thus penalized
    • Amazon prefers detailed reviews as they do evaluate what’s in the reviews
    • Duplicate review content will get you flagged
    • Timely reviews are rewarded and therefore are crucial
    • Amazon Vine and the like exist to help build customer review momentum for new sellers
    • Shoot for 20 reviews for starters to reach the threshold for customer trust in your product
    • Never cheat with fraudulent reviews
  • Stock and Inventory
    • 30 days of stock inventory is advised
    • Stock can affect PPC and ranking
    • If you will be out of stock for more than one week, close your listing manually. Avoid deleting your listing
    • Zero sales on an active listing for a lengthy period are penalized
    • Raising prices to slow down sales and thus keep inventory stock so as to keep your listing active will harm your ranking
    • Always have the Buy Box as a private seller
    • The Buy Box will be forfeited if another seller is selling the same product on your listing and if the price of your product is too high
    • Keep your Seller Feedback score above 98%
    • Age of account
    • Refund rate should remain under 5%
    • Include a product video with your listing
    • Shoot for a Review rating above 4.5 stars
    • A Q & A section is required for each product listing
    • Answers in the Q &A should have the appropriate product keywords to boost your ranking
    • Bestseller’s badge or Amazon’s Choice badge are based on subcategories and sales
    • Badges are assigned by Amazon and increase conversion
    • Badges are based on review score, FBA availability, etc.

It’s about perceived value, not the lowest price!

Your listing must justify your price. You need to make sure it is clear what value you are delivering at the price point you are listing.

Faith Evans
Product Manager