In the competitive world of e-commerce, understanding how Amazon’s ranking algorithm works is crucial for maximizing product visibility and sales, divided into direct and indirect factors.
Direct Factors
- Text Match Relevancy
Text match relevancy refers to the alignment between search keywords and the product listing content, such as titles, features, and product descriptions. Using specific and relevant keywords is essential for the algorithm to consider the product as a suitable response to user searches.
- Availability
Product availability, or its stock history, plays a significant role in ranking. Amazon prefers to list products that are regularly in stock to ensure a positive shopping experience for customers.
- Price
The product’s price is also a direct factor. Amazon tends to prioritize products that offer good value for money. Competing on price can help improve the product’s visibility in search results.
Indirect Factors
- Sales Velocity
Sales velocity is an indicator of the product’s popularity and demand. Products with high sales rates tend to rank better, as the algorithm considers them popular and relevant to buyers.
- Fulfillment Method
The fulfillment method, whether FBA (Fulfilled by Amazon) or FBM (Fulfilled by Merchant), affects the product’s ranking. Using FBA can provide an additional advantage, as products managed by Amazon are often prioritized due to the reliability of delivery and customer service.
- Reviews
Reviews, including the review score and the number of reviews, are crucial. Products with good reviews and a significant number of evaluations tend to rank better. Positive reviews not only increase buyer confidence but also positively influence the algorithm.
- Images and Video
Using high-quality images and videos can improve the conversion rate and, consequently, the product’s ranking. Clear, detailed images and explanatory videos help buyers make informed decisions.
- EBC/A+ Content
EBC (Enhanced Brand Content) or A+ content is a premium feature on Amazon that allows sellers to enhance their product descriptions with additional text and graphics. This enriched content can improve conversion rates and user experience, positively influencing the ranking.
- Advertising
Investing in advertising within Amazon, such as Sponsored Products, can increase product visibility and, eventually, its ranking. Effective advertising can generate a sales and visibility boost, which in turn positively impacts Amazon’s algorithm.
- Promotions
Promotions, such as discounts and special offers, can stimulate short-term sales and improve the product’s ranking. Attractive promotions draw more buyers and can increase sales velocity.
Conclusion
Understanding and optimizing these factors is essential for improving product ranking on Amazon. By focusing on text relevancy, maintaining good availability, competing on price, increasing sales velocity, using efficient fulfillment methods, obtaining positive reviews, using high-quality images and videos, creating enriched content, investing in advertising, and executing strategic promotions, sellers can significantly enhance their visibility and accelerate their sales on the Amazon platform.
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Developed by the Marketplaces Strategy and Consulting Department at ROC Worldwide Agency LLC.