How the Amazon Algorithm Works & and How You Can Use It for Your Benefit
As an Amazon Seller, it is crucial to understand and specifically use the algorithm to successfully run your business.
Have you ever wondered how some sellers manage to get their products at the top of the Amazon search results while achieving high sales?
The answer lies in the Amazon algorithm, acomplex system that determines the order of product listings and thus thevisibility and performance of productson the platform. As an Amazon seller, it is crucial for you to understand and use the algorithm strategically to make your business successful.
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What is the Amazon (A9/A10) Algorithm?
The Amazon algorithm, also known as A9 (previously) and A10 (current), is a crucial component of the search and sorting function on Amazon. It serves to present customers with the most relevant and attractive products, to enhance their shopping experience and increase their satisfaction. Amazon describes itself as the “most customer-centric company in the world”, therefore, it is naturally important for the marketplace to display the most appropriate results at the top – and so maximize its own revenue.
The A9 algorithm was the original algorithm that determined the order of the search results based on relevance for a particular search query. The A9 label originated from the name of the firm that developed the algorithm. There was no “official update” from A9 to A10. Rather the A10 label has prevailed, since changes to the Amazon algorithm have been observed for some time.
Amazon "A10" Algorithm: What's New?
The Amazon algorithm is not a static entity, but continually evolves to meet growing demands and enable an even better shopping experience for customers. With the “introduction” of the A10 algorithm, Amazon has made further improvements to provide even more precise search results.
The A10 algorithm is believed to place an even greater focus on users' search intentions. The product with the highest purchase probability should appear at the top. In comparison to the A9 algorithm, the weighting of different ranking factors has changed. For example, the number of organic sales gained in relevance, while PPC-Sales became less decisive.
Amazon Algorithm: These Factors Matter
The Amazon algorithm uses a wide range of factors influencing success on Amazon. What matters most is the relevance and attractiveness of your products for specific search queries. Let's take a closer look at which factors influence the algorithm.
Listing & Keywords: The Keys to Visibility
A crucial factor for the Amazon algorithm is the proper use of keywords in the product listing, i.e., the title, the bullet points, and the backend keywords. It is particularly important to use relevant keywords that not only arouse the interest of customers but also cover the search queries for which your product is relevant. A well-considered keyword strategy helps the algorithm to assign your product to the appropriate search queries and to place it higher in the search results.
An example: You are selling a yoga mat on Amazon. By using the relevant keywords in all components of the listing, you clarify to the algorithm what kind of product it is. If the product is now searched for by customers, you increase the likelihood of being displayed in the search results.
Account Performance: The better the performance, the better the result
The sales history of your product is another significant factor. Regular sales and consistent demand signal to the algorithm that your product is not only popular but also relevant. A strategy aimed at establishing a steady sales history can make your product climb higher in the search results over the long term.
The overall account performance also plays a big role. Products should not regularly be "out-of-stock", as this could indicate that sellers are not able to meet demand. A well-maintained and active seller account, demonstrating a high availability and reliability is positively rated by the algorithm. It's important, therefore, to keep an eye on your overall seller performance to earn the trust of the algorithm.
To improve your sales performance, you can apply various strategies. Starting with sales promotions and special offers to then boosting your visibility through marketing measures. The more sales you generate, the better you signal to the algorithm that your product is in demand. Think long term and consistently work to build a strong and stable sales history.
Customer Reviews: Trust through Reviews
Customer reviews have a significant influence on the ranking of your products. Products that shine with many positive reviews are considered to be trustworthy and popular. This leads to them having a higher probability of being better placed in the search results. Make sure to pursue an active strategy to encourage customer reviews and proactively respond to customer feedback, to further optimize your product.
Further Factors: Keeping the Whole Picture in View
In addition to the mentioned factors, the algorithm takes into account a range of other aspects. The click-through rate (CTR), which shows how many users click on your product after it appears in the search results, is an important indicator of the relevance of your product. Also, the Amazon conversion rate plays a role - this concerns the number of actual sales in relation to the number of page views. The shipping speed, external traffic sources and even seasonal trends can also influence the algorithm.
However, the Amazon algorithm is not static. It is continuously active and agilely adapts to changes and trends. This means you should rethink and adjust your strategy regularly to stay competitive and achieve best results. By keeping yourself constantly informed about the latest developments and adjusting your tactics accordingly, you can ensure that you are effectively using the algorithm and optimally positioning your products.
Overall, the Amazon algorithm proves to be a multi-layered system based on numerous factors. Listing & keywords, sales performance, customer reviews, and a host of other elements influence how your product is presented in the search results. By strategically integrating these factors into your strategy and regularly adjusting it, you can improve the visibility of your products, enhance your Amazon ranking and ultimately increase your sales performance.
How can you use the Amazon algorithm for your success?
The Amazon algorithm has a huge impact on the sales performance of your products. The strategic use of the Amazon algorithm is therefore essential to successfully present your products on Amazon and generate more sales. Here are some tips and recommendations on how you can use the algorithm for your benefit:
Amazon SEO: The proper use of relevant keywords in your product title and descriptions is crucial. Conduct effective keyword research to find the best search terms for your products and use these in your product listing.
Product images and descriptions: Make sure to use high-quality product images and detailed descriptions that pique customers' interests. An appealing and optimized product page increases the likelihood that customers will click on your product and purchase it.
Customer Reviews: Prompt your customers for honest reviews, as these have a major impact on the ranking of your product. Actively respond to customer feedback and strive to minimize negative reviews through excellent customer service.
External Traffic: Utilize social media marketing, influencer collaborations, and other marketing channels to direct external traffic to your product page. This shows the algorithm that your product is sought and found by potential customers outside of Amazon.
PPC Campaigns: Invest in Amazon Advertising campaigns to drive more traffic to your product page and increase the visibility and sales of your product. Focus on relevant keywords and target groups to use your budget efficiently.
Tip: At OMR Reviews you can find a variety of Amazon PPC Tools in comparison.Sales promotions: Conduct limited-time discount promotions or other marketing measures to boost sales numbers and improve the ranking of your product. Customers are more likely to be enticed to buy your product through special offers.
Data Analysis: Analyze and monitor the performance of your products with relevant data. Watch for trends and changes to adjust your strategy in time and take advantage of competitive edges.
What tools are suitable for working with the Amazon algorithm?
Various tools are available for working with the Amazon algorithm that can help you optimize and monitor your products. Here are some recommended tools:
Helium 10 offers a variety of features, including keyword research, listing optimization, competitor analysis, and rank tracking. It is a powerful suite of tools that allows you to improve the performance of your products and effectively use the algorithm.
Jungle Scout is a popular tool for product research and analysis. It offers features such as product tracker, keyword scout, and sales analytics to identify profitable niches and keywords.
Adspert helps e-commerce businesses maximize profit on Amazon, eBay, Google, and Bing by PPC optimization. Adspert's AI automatically analyzes data and their correlation to be able to place optimal bids.
BidX is a tool for PPC optimizations. The German company specializes in PPC management and offers a comprehensive solution not only for Amazon advertising with its software. Besides Amazon DSP, the company provides a wide advertising network outside of Amazon.
Conclusion
The Amazon algorithm is a crucial factor for success as an Amazon seller. To optimally position your products and improve the sales performance, it is important to understand the algorithm and use it strategically. Optimizing your Amazon listing, soliciting customer reviews, utilizing external traffic sources, and a supportive Amazon PPC strategy are some of the key factors you should consider.
Always stay informed about the developments of the A10 algorithm to adjust your strategy and to be successful on Amazon in the long run. Use the Amazon algorithm as a powerful tool to boost your sales and expand your business on the platform.
Marco Podavka ist Geschäftsführer und Mitgründer der Namox GmbH, einer Amazon Agentur mit Sitz in Dresden. Seine berufliche Erfahrung konnte er im Bereich Business Development, Business Administration, Social Media & E-Commerce aufbauen, indem er nach seinem BWL Studium bei Audi, eine der ersten Influencer Marketing Agenturen Deutschlands gründete und diese 2019 verkaufte. Zudem war er Mitgründer der E-Commerce Marke HEYNNA, welche 2021 erfolgreich an „The Stryze Group“ verkauft wurde.
Bei Namox liegt sein Fokus mittlerweile nur noch im Bereich Business Development. Er verfolgt dabei das Motto „Arbeite am Unternehmen, nicht im Unternehmen“, was seine strategische Herangehensweise und sein Streben nach Wachstum und Weiterentwicklung des Unternehmens unterstreicht.
