Amazon Algorithm: How It Works & 5 Tips To Beat It

Amazon is a powerhouse online when it comes to sales. With two-day shipping, millions of products, and countless sellers and services, this is a business that will only continue to thrive. 

On the advertising and seller side though, there’s a ton of competition to be overcome for sales and profits. That’s where the Amazon algorithm comes into play. We look into how the algorithm works and how to master it, earning new sales traffic and new customer reviews. 

What is the Amazon Algorithm?

Amazon SEO is similar to Google or Yahoo search engines, except their platform is almost entirely geared toward e-commerce.

For the Amazon algorithm to be effective, products must be searchable by consumers. The algorithm ranks companies and their products on the website. 

The algorithm, called Amazon A9, ranks all of the products based on the factors:

  • The sales performance history 
  • The text match relevancy: This begins with the product title, and it also involves the description and product copy. 
  • Price: When your pricing is much higher than others, your competitor might win the sale.
  • Stock availability: When you’ve run out of stock, the listing ranking may just decrease or fully disappear, so make sure you plan for this. 

There are also indirect factors that impact Amazon’s final product ranking. They include these. 

  • Promotions 
  • Advertising 
  • Premium content 
  • Images 
  • Reviews 
  • Fulfillment method 

There Has Been a Recent Amazon Algorithm Update 

While the Amazon algorithm is considered Amazon A9, there have been updates that advertisers now consider to be Amazon A10. Amazon hasn’t made an official statement regarding the new name.

The update added the following features to the algorithm: 

  • Seller Authority 
  • Impressions 
  • Internal Sales 
  • PPC Sales 
  • Click-Through Rate 
  • Off-Site Sales 
  • Conversion
  • Sales History
  • Organic Sales  

This is How You Master the Algorithm 

Now that we know what the algorithm entails, we can discuss how to master as sellers. 

Make the Amazon Prices Competitive: Competitive prices on Amazon increase the chance of sales and raise product rankings on the website. Research the different products and see how to price yours competitively. 

Make sure to also look at the seasonal aspects as well. If it’s the holiday season, then a promotion will really do well in winning the sales.   

Encourage Consumers to Write Reviews: Reviews are one of the best ways to build consumer trust. This is because other consumers are writing honestly about what they think of the product. 

Without reviews, the seller might lose credibility because it indirectly tells customers the product isn’t selling.   

Ensure the Performance and Rankings are Monitored: Measure how business is being conducted. And make sure to look at how rankings from your competition are affecting you. If you’re not measuring, it will be hard to determine how to increase sales.  

Sales Conversions Play a Huge Role: If the conversion rate is low, it’s best to determine why. Conversions equal sales, so the percentage needs to be high to show relevance to other consumers.

Examine which type of traffic is visiting the website, and research why the search results aren’t ending in sales. Is the target market relevant to your products? Do your products have an advantage against competitors?  

Bring in Sales Traffic Externally: While Amazon brings in a ton of its own traffic, you can help this outreach with targeted traffic from Facebook, AdWords, and bloggers that use Amazon advertising, most likely via an Amazon ads agency.   

The Bottom Line

Are you an Amazon seller or are you planning to be a seller for your products? It’s important to look at everything the algorithm includes, especially Sponsored Products and Brands. Once you understand its inner-workings, you can use different methods to accelerate your online business. The five features listed above are a great start for driving traffic to your products. Let us know which tip works for you!