The Basic Concept Used by Amazon for Ranking Best Seller
The Amazon Best Seller Rank is a calculated algorithm based on a product’s sales and keeps the ranks updated hourly. The rank allocated to sellers also takes into consideration the product’s current sales and the history of sales. A product with a rank of “#1” indicates, in that particular store, it has recently sold more than any other product in that category.
Advantages of Being Amazon Best-Seller
- You can handle the traffic that comes to Amazon.com, which is 150 million people in the United States alone per month.
- You can add the title “Amazon Bestseller” to your websites and marketing materials. As everyone knows, Amazon and everyone know that you need to face a lot of competition around the world to be an Amazon Bestseller.
- Getting named an “Amazon bestseller” earns you instant recognition and makes you an expert in your profession.
- Once the Amazon and Google know who you are, the sky is the limit to brag about being the bestseller for Amazon.
Algorithm Used by the Amazon to Rank the Best Seller
- Amazon aims to maximize revenue per customer, that is,
- By rising customer numbers.
- By increasing the mean size of the transaction.
- By increasing transaction frequency by customers.
- Rising the prices of products even.
- The algorithm used to evaluate the rank of the seller is as follows:
- The use of human judgments.
- Programmatic analysis: The buying, marketing, and advertising of programmatic media is the algorithmic buying and selling of real-time advertising space. Using the bidding system, the software is used in this process to automate the purchase, placement, and optimization of media inventory.
- Key business metrics.
- Performance metrics.
Factors Affecting the Amazon Sellers
- Customer Review
- Answered Question
- Image Quality and Size (allow buyers to see seller product in more detail)
It is essential to list your product at a price comparable to your competitors’ prices. Neither too high nor too low.
- Parent-Child Relationship
It helps the customers to view different versions of the product. For example,
There are three elements of a parent-child relationship as follows:
- The parent product: The product displayed in the search results is parent product.
- The child products: The products that have the same parent product are child products of that parent product.
- The variation theme: The variation theme shows the relationship between the parent and the child.
- Time on Page and Bounce Rate
The total amount of time a customer Spends on the Product pages shows the Amazon, that how customers are interested in your product.
- Product Listing Completeness
Complete every single field present in the listing setup page.
A good product title will increase the conversion rate of the seller. To optimize the seller’s Amazon product title, it should contain keywords; the title should be easy to read and must be under 200 characters.
- Features/bullet points
The seller should display the product features in detailed bullet points, which include keywords (like below), which is a great way to increase conversions.
- Product description
The seller should display the product features in detailed bullet points, which include keywords (like below) so that it is a great way to increase conversions.
- Brand and manufacturer part number
This helps buyers searching the products by its brand name more easily and showing the more relevant and best seller.
As we know, the specification section is the technical and physical details of your product, including size, shipping weight, color, etc. Completing every field of this section shows Amazon that you’re diligent when it comes to listings.
- Category and sub-category
When the seller is setting up his product listing, he should make sure that he selects the most relevant category for his product.
- Search terms
Amazon gives you five fields with a character limit to specify the search terms that you want to be associated with your product, which helps in Search Engine Optimization (SEO).
Customer Satisfaction and Retention Factors
- Negative seller feedback
In the Amazon, product comment feedback section, all negative feedback counts against you equally in terms of product search results.
- Order processing speed
To be successful Sellers on Amazon, the seller needs to ship fast and accurately. Therefore being a seller, the seller ranks higher with efficient order processing.
- In-stock rate
Amazon likes the seller, who keeps a high in-stock rate to minimize refunds and pre-fulfillment cancellations.
- Perfect order percentage (POP)
The seller who achieves a higher percentage of perfect orders will rank higher than those sellers who experience order issues.
- Order defect rate (ODR)
When a customer makes a claim against an order, this is considered an order defect. Defects include negative buyer feedback, A-to-Z Guarantee claim, shipment problems, and chargebacks or refunds.
- Exit rate
Exit rate is the percentage of times a customer views sellers listing and then exits Amazon. Products with a lower exit rate will always rank higher in comparison to other sellers.
Hereafter becoming the amazon best seller, the next most important to achieve the Buy Box. Which boosts the sales of your product. If you are a top seller, there are high chances that you can win the Buy Box.
The Buy Box refers to the white box on the right side of the detail page of Amazon’s product, where customers can add items to their cart to buy. Hence, winning a Buy Box develops your success on Amazon and builds a strong, positive reputation for your brand.
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