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

Let’s look into how the Amazon algorithm works and how to master it for bigger sales and even greater profits.

Amazon is a powerhouse online when it comes to sales! With two-day shipping, millions of products available and so many 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 that needs to be overcome in order to gain the sales and profits to thrive. That’s where the Amazon algorithm comes into play. 

Let’s look into how this particular algorithm works and how to master it for bigger sales and even greater profits. From new sales traffic to gaining new customer reviews, let’s get started and see how you can work with each. 

What is the Amazon Algorithm?

Did you know that Amazon SEO is similar to Google or Yahoo search engines? However, since Amazon is a purchasing platform, there are more shopping products for it to be so easily shoppable. 

For the Amazon algorithm to be the most effective, the products need to be easily searchable for consumers. The algorithm will rank different companies and their products located on the website. 

The algorithm has a specific name called Amazon A9 that was formally released. It’s been known to rank all of the products based on these following features. 

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

There are also indirect features that may 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 

Although 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 stating that this is the new name.

This update has now included the following into features to be included in 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’ll go into further detail to discuss how to better master it from a seller’s point of view. Take a look to see at the following features to take part. 

Make the Amazon Prices Competitive: Competitive prices on Amazon are what will win the sale and the product ranking on the website. Make sure to research the different products available for sale and see how you can price yours lower to potentially win the sale. 

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 simply because other consumers are writing how they honestly feel about the product. 

Without reviews, the seller may lose the credibility they’re seeking simply because it indirectly shows that sales aren’t being made.   

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 watching or measuring, you won’t be able to really determine what needs to be done for increased sales.  

Sales Conversions Play a Huge Role: If the conversion rate is low, then you need to better determine why. Conversion equals sales, so the percentage needs to be as high as you can achieve to show higher relevance to other consumers.

Look at what traffic is hitting the website, and research further to see why the search result doesn’t end in a sale. Is the target market relevant to your products? Do your products have an advantage against your competitors?  

Bring in Sales Traffic Externally: While Amazon already brings in a ton of its own traffic, you’ll be able to better control the outcome by outreaching yourself. This is able to be achieved by looking at targeted traffic from Facebook, AdWords, and even bloggers that are utilizing Amazon advertising, most likely via an Amazon ads agency.   

The Bottomline

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 entails, especially Sponsored Products and Brands, since it will be able to help dictate your business. Once you understand all of the inner-workings, you’ll be able to look at all of the different methods to achieve for your online business. The five features above are a great start to driving traffic to your products and receiving the sales you deserve. Let us know which tip works for you!  

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